Drop Ship Query again!

[creativeclare]

Please could I have your opinions please???

I`m in the process of finalising a drop ship agreement with a baby & childrens products website but the company is asking 25% comission on each sale. I can`t increase the price of the items to absorb the comission cost as I sell them on my own website and I also think that it wouldn`t give the customer value for money.

I think 25% is too high, but perhaps that`s the going rate???

Advice much appreciated!

[ladyluckjewellery]

Hi,

I don't think 25% is unreasonable, but it depends what you are getting for your commission to the site if that makes sense.

For example, are they doing a lot of advertising, and do they have a regular customer base, does their site look professionally built & maintained? If they are working hard to promote their site, then 25% doesn't seem too bad, but if they aren't doing much to earn their 25% then I would try to negotiate if you can.

Hope that helps,

Claire

[Jo Lovejoy]

Hi,

My husband sells some of his products through other on line retailers and he usually has to give 45%, so 25% doesn't sound bad. I would echo the suggestion to check out what they do in terms of advertising and so forth. Also check their Google page rank, that should give you a good indication of the volume of traffic they get.

I guess the key question is will you still make money at 25%, and if so, will selling with them give you a good increase in the volume of your business.
Jo x

[creativeclare]

Thanks for the feedback Jo & Claire! It`s certainly given me something to think about!


45% OMG!