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How can I work with retailers as an agent who has confirmed buyers of their products but for different prices?

• Hello, I am working on an idea which involves working with retailers to fulfill products to confirmed buyers/customers. Now, my question is that a lot of these customers have different prices that they have committed to me for the same product. Lets say that for a particular Coach bag (used for example purposes only) which Coach is offering my customers for $200 (instead of the regular price of $250), I have 3 customers which are offering to pay me $210, $220 and $225 respectively. Now, ideally, I would like to keep the difference between what Coach is offering my customers the bag for and what my customers want to offer me for the bag. I see that this is a win-win situation for both the buyers (who are getting a bag for less than what they would have paid if directly purchased) and for the seller (as I have obtained them 3 customers. My question is the following: -- I would like the seller to ship the product directly to the buyer. How do they put in the buyer's confirmed price (lets say $210) instead of $200 (which is what the deal is between me and Coach)? -- When there is a return of the product, I would like the buyer to deal directly with the seller. How can he entire process work? Any other issues I should be aware of? Thanks in advance

• Answer:

  What you're looking for is a retail model called drop shipping*. In this model, you would sell products on behalf of a manufacturer or wholesaler, e.g. through your own website. You do all the marketing and sales work. The manufacturer produces the product, stores it, and fulfills the orders. You set the prices of the products and, after each sale, buy the product from the manufacturer at a set price. From http://www.gogodropship.com/how.php Other details, such as who handles customer service, vary from company to company. Most drop ship companies don't want to interact directly with customers so you would be responsible for your own customer service, though the manufacturer almost always executes any warranty work. Some drop shippers do not accept non-defective returns. That will restrict your ability to take returns, or force you to inventory/refurbish returns yourself. Some drop shippers have policies that restrict what price you can sell the product for, offer rebates for high-volume periods, etc. Drop shipping increases brand risk for you and the manufacturer because both parties surrender control over part of the customer experience. This is a big part of why almost no high-end brands (like Coach) offer drop shipping. Unless you are working directly with the manufacturer, it can be difficult to tell how many layers there are between you and the manufacturer. That makes it tough to understand the deep operational details of your business, your leverage in negotiations, and profit potential. Every decent drop shipper is selective about who they will sell to, and the level of selectivity varies greatly. Some have guidelines for minimum forecasted annual sales. Some only work with you if you agree to territory and channel restrictions. Nearly all of them have variable pricing that you will have to negotiate. Because drop shipping is a very popular mechanism with scammers and "work from home opportunity" types, it can be difficult for new businesses to sort out the good drop shippers from the bad ones from the outright dishonest scammers. *See more on Wikipedia: http://en.wikipedia.org/wiki/Drop_shipping