topic DROP SHIPPING ethical? in Selling

DROP SHIPPING ethical?

daddykool-123 — Sat, 17 Oct 2015 07:43:37 GMT

Many people dont really know what it is, I and many other Sellers place stock orders and we quote same day delivery because we have it on our shelves. A customer places an order, we take it off the warehouse shelf, pack it and post it immediately.

Drop Shipping is:

1. Stock advertised as 3-6 business days delivery. (No Seller Stock on Hand).

2. When you place your order, the Seller places an order with his wholesaler. (No Cost to Seller).

3. The Wholesaler posts the goods straight to the Buyer. (No warehousing for Seller).

4. The Seller pockets the difference between wholesale and retail prices.

5. No Corporate ethics or responsibilities. With a usually lengthier delivery period.

No stock, no risk for the seller, no warehousing, no outlay of capital, just "free" money for the Seller.

Now, the ACCC (Australian Competition and Consumer Comission) frowns on this practice and I am suggesting that eBay is an innocent 3rd party in this matter, now here is my question:

Would you rather buy from someone in Australia that has the stock on their shelves or would you prefer a Drop Shipper?

D.K.

Re: DROP SHIPPING ethical?

imastawka — Sat, 17 Oct 2015 07:53:33 GMT

Not all drop shippers are overseas.

Re: DROP SHIPPING ethical?

southaustraliacardshop — Sat, 17 Oct 2015 08:14:50 GMT

@daddykool-123 wrote:
Many people dont really know what it is, I and many other Sellers place stock orders and we quote same day delivery because we have it on our shelves. A customer places an order, we take it off the warehouse shelf, pack it and post it immediately.

Drop Shipping is:
1. Stock advertised as 3-6 business days delivery. (No Seller Stock on Hand).
2. When you place your order, the Seller places an order with his wholesaler. (No Cost to Seller).
3. The Wholesaler posts the goods straight to the Buyer. (No warehousing for Seller).
4. The Seller pockets the difference between wholesale and retail prices.
5. No Corporate ethics or responsibilities. With a usually lengthier delivery period.

No stock, no risk for the seller, no warehousing, no outlay of capital, just "free" money for the Seller.

Now, the ACCC (Australian Competition and Consumer Comission) frowns on this practice and I am suggesting that eBay is an innocent 3rd party in this matter, now here is my question:

Would you rather buy from someone in Australia that has the stock on their shelves or would you prefer a Drop Shipper?

D.K.

I buy quite a lot of Stock from China and resell it Directly from Australia. I mention in my listings "Item Is Posted From Adelaide South Australia NOT China so you should receive your item in a few days not weeks." I usually have to wait up to 3 maybe 4 weeks to receive my items from China but I always make sure I have plenty on stock in hand and at a point I will re-order. Drop shipping I tried and I dont like it..

This is just my thoughts

Paddy

Re: DROP SHIPPING ethical?

kopenhagen5 — Sat, 17 Oct 2015 09:18:05 GMT

I would rather buy Australian, period.

(Loathe drop shipping, too many potential problems for all concerned)

Re: DROP SHIPPING ethical?

digital*ghost — Sat, 17 Oct 2015 09:54:45 GMT

There is nothing unethical about dropshipping, in and of itself. What is unethical is when seller's aren't up front about it, and do things like present their items as being located in Australia.

If you look at the bigger picture, you'll see that dropshipping carries quite a high risk for the seller - they are responsible for everything (to the buyer), but in control of virtually nothing - that's the trade-off for little to no capital investment. I have seen businesses completely destroyed by a wholesaler letting the seller down. Of course, the seller has responsibilities - even more so if they are a registered Australian busines, the fact that their product is shipped directly from overseas doesn't suddenly mean their customers have fewer consumer rights.

If a seller imports their products then lists it, at the end of the day (money-wise) there isn't a great deal of difference to a dropshipper, (list it, then import it, some money changes hands between all the same parties, except customs duties may be avoided since multiple smaller shipments are incoming as opposed to one large one, and in that way a dropshipped price may be lower than if the seller imported the stock first).

I personally would not drop ship, I prefer to have much more control over my business stock etc, and as for buying preferences, if the product has to be imported either way, I don't care who I buy it from unless I need it really quickly.

Re: DROP SHIPPING ethical?

saarzi — Sat, 17 Oct 2015 10:56:36 GMT

ugh.

Dropshipping is sending something direct from a third party wholesaler to a customer. Thats it. It has ZERO to do with advertised delivery times (many drop ship wholesalers post same day, or by courier!). and ZERO to do with what country the seller, buyer, or wholesaler is in (many are located in the SAME country as buyer and seller!). It also has ZERO to do with whether or not the seller has their own warehouse, and whether or not they are ethical!

Secondly, companies in Australia who dropship ABSOLUTELY have legal risk in terms of the item, the postage etc etc, the same as any other company and any other way of doing business.

Also, Buyer places order with seller, seller places order with wholesaler, wholesaler posts to buyer - is the kindergarten BASICS of dropshipping. Sellers can have contracts with supplier warehouses for shipping, or for a set number of items being available to them, or even for branding the products and/or packaging before its posted to the buyer - The item is still going direct from third party warehouse to buyer.

Also, many major retailers in Australia use dropshipping. This includes, The Reject Shop, Fujitsu, hewlett packard and Dell (yes, DELL)... among hundreds of others. I know of these ones specifically, because I worked with each of them directly as a consultant (in relation to technology, supply chain and service delivery).

The ACCC does NOT frown on dropshipping - many, many major retailers depend on it - its a normal part of business. Most people dont realise this because its often not obvious to day to day customers... partly because its regularly used for parts and accessories, or special orders, corporate orders, etc etc, but also because dropshippers are often in the same country as the buyer seller, and some will even brand the package as per seller requirements, so usually buyers are none the wiser (this is completely normal and not illegal or frowned upon by any aussie department whatsoever). Not having warehouses for every single item and every single part of every item a retailer has, is common these days.

What the ACCC frowns upon are ANY seller, including dropshippers, who are acting unethically, misrepresenting their goods (such as counry of origin or make - drop shipping alone is not a misrepresentation of anything), and those who have poor knowledge of the process, risk and responsibilities, placing the risk onto their customers.

If you dont like dropshipping, do your research and dont buy from companies who dropship (which is most of them).

If you have an issue with dodgy sellers *on EBay* that are dropshipping from other retailers and misrepresenting products locations, where they were made, or shipping times, dont blame dropshipping as a whole. Its like blaming the entire population for one idiot, and it just sounds ignorant.

Re: DROP SHIPPING ethical?

locall1961 — Sun, 18 Oct 2015 06:50:02 GMT

I was on Ebay looking for a wall bracket for our TV today. The amount of sellers that are supposedly in Australia but are not really is terrible. In item location it says, say as an example, Sydney Australia, but when you click on their name it states the seller is based in China so of course it is going to take longer to be delivered and I dont want to buy stuff like that from overseas, more chance of damage the longer it has to travel.

One seller even has the audacity to have AU STOCK written on their photo but click on their name, they are based in China. How can sellers get away with that. It's wrong and Ebay should stop it from happening.

I only found out accidently today that if you click on the sellers name it tells you where the seller is really located. That, I will be doing everytime from now on when I go to buy something.

Re: DROP SHIPPING ethical?

*tippy*toes* — Sun, 18 Oct 2015 11:06:02 GMT

Sometimes they are based in China but have a warehouse in Sydney. Not all of them that say they have AU stock are dodgy. Sometimes it is actually in Australia.

Re: DROP SHIPPING ethical?

locall1961 — Sun, 18 Oct 2015 11:36:20 GMT

Thats good to know tippytoe but I dont understand why they are not honest and upfront. I dont mind anyone using dropshipping, I would just like to know where my item is actually coming from so if I am in a hurry for something, I know then to locate someone close to home and I shouldnt have to delve deep to find out

Re: DROP SHIPPING ethical?

*tippy*toes* — Sun, 18 Oct 2015 12:17:45 GMT

I've found most of the time if you check the under the shipping tab, it will say that it's being posted via Australia Post if the item is actually in Australia. I don't think you can select Aust Post if you are posting from overseas. Some that say they are in AU will often accept bank deposit and will leave the bank details in the listing description. If it's an Australian bank then the item is probably here.

Re: DROP SHIPPING ethical?

lyndal1838 — Sun, 18 Oct 2015 14:26:46 GMT

@locall1961 wrote:
Thats good to know tippytoe but I dont understand why they are not honest and upfront. I dont mind anyone using dropshipping, I would just like to know where my item is actually coming from so if I am in a hurry for something, I know then to locate someone close to home and I shouldnt have to delve deep to find out

A few years ago I was looking for a large number of plastic DVD/CD sleeves. Most of them were from China so I was quite prepared to wait some time for them to arrive.

The main criteria was that they had to be cheap....and I was expecting to get exactly what I paid for...cheap.

I found some that were supposedly in Sydney but going by price (they accepted a best offer) and the wording of the listing I was quite sure they would take weeks to arrive from China.

I nearly fell over when they arrived via Australia Post less than 18 hours after being paid for. And they were absolutely top quality too....I would have happily paid a lot more if I had walked into a shop to purchase.

Needless to say that seller has had quite a bit of return business from me as well as several other sales from family and friends.

Re: DROP SHIPPING ethical?

englishrosegardens — Mon, 19 Oct 2015 00:47:21 GMT

@locall1961 wrote:
Thats good to know tippytoe but I dont understand why they are not honest and upfront. I dont mind anyone using dropshipping, I would just like to know where my item is actually coming from so if I am in a hurry for something, I know then to locate someone close to home and I shouldnt have to delve deep to find out

Because they want your business and they'll do anything to get it. They're like a lot of sellers - too short-sighted to see that repeat buyers are worth a little extra effort (and honesty).

Re: DROP SHIPPING ethical?

shalimarsway — Tue, 05 Apr 2016 19:03:21 GMT

I think drop shipping is reprehensible and I definitely prefer to purchase from an Aussie seller who actually has stock on the shelves.

I'm sick of being conned by dishonest foreign sleeze-bags with some kind of an 'agent' living in Australia - where - only AFTER I've committed to buy - I THEN discover that what I purchased is being drop shipped.

What else is one to think when one receives a confirmation email that says, "... I’ll get the order off to my master and shop packer right away, and let you know as soon as it’s been completed and shipped. .." (emphasis mine).

Excuse me? "My master"???

Slimy. Sleezy. Dishonest. I don't care what the ACCC says.

Let me pose this question: how many of these dropshipping 'drop kicks' are profiteering from slave/child labor?

Re: DROP SHIPPING ethical?

247newdeals — Tue, 05 Apr 2016 23:54:32 GMT

Would you rather buy from someone in Australia that has the stock on their shelves or would you prefer a Drop Shipper?

D.K.

I would rather buy from the seller who offers me the better deal, To me it makes no difference and I see us all in the same boat working hard to to try to build a small business up we just have different business models.

Re: DROP SHIPPING ethical?

247newdeals — Tue, 05 Apr 2016 23:59:04 GMT

@kopenhagen5 wrote:
I would rather buy Australian, period.
(Loathe drop shipping, too many potential problems for all concerned)

Drop shippers can still be Australian to me I see no difference if a person buys the product first or use drop shipping from the same supplier it is the same product from the same seller.

I agree drop shipping is not for me but for them Aussies out there doing it I say good on them and good luck I hope it goes well.

Re: DROP SHIPPING ethical?

compatibleproducts — Mon, 28 Oct 2019 07:26:12 GMT

what didnt you like abot drop shipping if you dont mind me asking

Re: DROP SHIPPING ethical?

davewil1964 — Mon, 28 Oct 2019 08:14:45 GMT

I very much doubt the person you are addressing is likely to answer after FOUR YEARS.

I can give you my thoughts.

You are at the mercy of your supplier, but are wholly responsible for any issues.

In this day and age, the supplier is likely to be selling the same stuff online, at the same price you pay them.

There's a couple of ideas to mull on for the next 4 years.

Re: DROP SHIPPING ethical?

imastawka — Mon, 28 Oct 2019 08:17:48 GMT

That was 4 YEARS AGO.

I doubt you'll get an answer.