While talking to suppliers, we’ve found a common thread is concern about a dropshipper cutting the margin out of a product to make a quick sale, at the expense of the suppliers longevity and market strength.
Imagine that you, as the supplier, sell a product for $200 RRP, and $100 trade.
Your new dropshipping partner is a bit overzealous, and sells your stuff for $110 to retail customers.
Now you’ve got a problem! They’ve cut your $100 profit margin down to $10 (Amazon anyone?)
When you list your products for sale on Elvenda, we ask you to set a minimum sale price for all of your goods, to ensure that dropshippers protect your brand, product line, and ultimately your business.
If a rogue dropshipper sells a product for less than your minimum sale price, it won’t be accepted by Elvenda for processing.
We received this suggestion directly from a supplier who has had these types of issues with dropshipping in the past. It’s our job to make dropshipping a great additional sales channel for suppliers and dropshippers alike, and this is a big step to making sure that happens.
If you’ve got another great idea we can implement for suppliers or dropshippers, drop us a line – we’d love to hear from you.