Get the Drop Ship Contract Template that available to use for drop ship supplier, vendors, and many more. The drop ship or in other word is called with direct shipping is a supply chain for business distribution where the vendors transfer the purchase order and the shipment details to the supplier or wholesaler. The supplier or wholesaler then shipping up the goods to the end consumers in directly.
What should the drop ship contract cover?
A good drop ship contract should cover the term, cancellation term, suppliers role, billing, fees and charges, sales and tax, return policy, problems that happen with shipping, responsibilities, right to modify the goods, non-payment, confidential information, and effectiveness. Term for the force majeure, nature disaster and others are should be clearly define to avoid any further any complicated drop shipping service that will make the costumer loose out their order. When you are considering for having drop ship for your business distribution, it is better for you to include for payments term and invoicing that define in clearly. Take for legal requirement, systems drop ship that effective, and route shipping and compliance management. When the property and good are delivering, it is important for the vendor and retailer to keep the secret information based on the contract. If there are unhappy consumers, that want t return the good or exchange the good, you need to clearly state for who will be responsible for this. The different responsibilities are handle both from the vendor and retailer that drop ship the good.
Drop Ship Contract Consideration
As business strategy, the benefit of drop ship strategy is enabling for wider assortment merchandise without incurring the cost and risk from carrying the house inventory. The drop ship contract is able to improve the customer service level. It also benefits for effectiveness in cost and service rather than the associated margin and risk inventory. In addition, it is fit for large and heavy item that make the shipping more straightforward and break the order line from customer.
When you are use drop shipping service, it is important for you to have good drop shipping vendors. This because this drops shipping service delivers the quality and meets with your standard that leaves your brand in vulnerable. Shipping with good customer service will leave good impression for your customer. Delivery speed in drop shipping is variable and it is depend to the drop shipping service level that you want and their business chain network.
If you are looking for a reference to understand more about it, you can download this drop ship contract template below.
Dropship Contract Template (36.0 KiB, 315 hits)