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My first drop shipping nightmare about to come true

Discussion in 'Dropshipping & Wholesale Hookups' started by Hydranize, Jun 15, 2016.

  1. Hydranize

    Hydranize Registered Member

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    So I've finally got a feel people I'm listing stuff on my eBay account for that drop ships. I've also got a really great selling product as well, profit isn't much but it does sell fast which I think is key, on average I'd say I'm doing $110 USD in a 7 day period.

    Now for the part that is not working out, I have a middle man and I'm reselling these items for him, my middle man gets a split but figure I gave above is after the split so roughly $110 USD in a 7 day period which I think is pretty decent. Okay so now onto the part that I was afraid would happen.

    The guy promised Tracking Info on a certain day, sadly he has yet to provide the Tracking info and I've already gave my middle man his split, my middle man is also in contact with the guy but as of recent the guy has stopped replying so all communication came to a stop. He supposedly had a problem with his website that I purchase all of the goods from and has mentioned that he issued me a full refund for all of my orders so if this is the case I would need to re-order everything.

    The above being said currently these people paid for these items on or around the 9th or 10th, Tracking Info was promised on Tuesday (The 14th). I'm thinking if I should give wait till Monday to see if any Tracking Info is provided. My middle man said his last communication with the guy was that despite the mishap with the orders on his part that he would still be providing Tracking Info but as mentioned has yet to do so.

    Any ideas or input as to how you would handle or go about such a situation?
     
  2. CazuaL

    CazuaL Elite Member

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    Sounds like a scam waiting to happen. You shouldn't be giving anyone their cut until the buyers have received their items.
    If he doesn't show up, you're out of pocket because you can guarantee those people will want a refund. Had this happen to me when I was first starting IM.

    I hope everything works out and the guy is just having a brief problem.
     
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  3. therealblackbox

    therealblackbox Registered Member

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    Interesting so you have a middle man for the middle man. That sounds way too complicated. How long have you been selling for? Honesty id stop selling at the moment and deal with the situation at hand. You don't want to damage your eBay account for something like this. Even if it requires you to refund your customers. All it takes is 1 bad feedback for all hell to break loose. It's better to take a small loss if you have to, assess the situation, and come back smarter versus being banned from selling because that is a whole OTHER package of hell. Take time and run small quantity just to test the way the process works with your people. And from the way it sounds, you may need to revamp the payment agreement and do the split after the transactions are fulfilled.
     
  4. Hydranize

    Hydranize Registered Member

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    no middle man for a middle man, its simply one guy and this guy works with the other guy who has the product that I'm reselling. I'm sure my middle man would also have no problem after the people get the items to be paid his portion but I opted to pay him per so many sales. Do you think Monday is a fair time to allow the person to provide Tracking Info for items to be shipped to my buyers or do you think I should start issuing refunds to my buyers?
     
  5. Dawgtown

    Dawgtown Junior Member

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    It may be in your best interest (for maintaining your eBay account) to refund all of your customers saying the item is out of stock. Apologize and offer to contact them when you have the ability to ship again. Then, work at getting a refund from whichever middleman you gave money too. Explain to him that with eBay, they require tracking information to be uploaded 24 hrs after making a sale to maintain your top-rated seller status.

    Then, it is time to find another supplier or renegotiate to send money ONLY after the item(s) are shipped to your customers. For my dropshipping sales, I email a list to my supplier every morning that indicates the item and sku #, name of customer, and shipping address. It took me quite some time to find dropshippers that worked with me in this way but if you layout the rules, many will oblige with their business.

    If you decide to wait for the supplier to ship, make sure and contact each eBay customer to let them know of the delay and if they are uncomfortable waiting the extra time, then you can offer a refund to them. If your eBay customers know that the items will be coming from China (or anywhere internationally), they may be quite ok with small delays in shipping. This is expecially true of lower cost items...many buyers are fine with a wait for the item. Communication can be your ultimate asset with eBay sales.
     
  6. Hydranize

    Hydranize Registered Member

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    Yeah I've always had great communication with my buyers on eBay and I thank you folks for the great advice, one other question when canceling a transaction does it take away the option of them leaving feedback for the transaction? If I'm not mistaken once agreed upon to cancel a transaction they no longer can leave feedback for the transaction, correct?

    EDIT: Oh yeah almost forgot, how about the eBay fee's? in this case I already paid the eBay fee's for most of the transactions. I've been in a situation like this many many moons ago, and maybe 3 or 4 times out of the 12+ years I've sold off and on, on eBay I'm a bit rusty on this and how it plays out. I need a refresher as my memory is not ticking too well.