The contract to be established with the dropshipping supplier

Thanks to dropshipping, it is now possible for entrepreneurs on a budget to start selling online. Indeed, with this solution, they don't have to spend a lot of money to build up a stock of goods and to rent a warehouse to keep them. Everything is done online through the supplier. However, an agreement is needed for this project to govern everything properly. 

The type of contract to establish with a dropshipping supplier

By collaborating with a dropshipping supplier, you have the possibility to launch your own online shop more easily. Indeed, with this option, you don't need to have premises to store your items for sale. And you won't have to spend a lot of money to acquire them either. It is important to note, however, that like all internet trading. This solution involves considerable risk. This is why it is necessary to draw up a dropshipping contract with the suppliers you will be working with. This is a way of ensuring that the relationship between you and the supplier is always a good one. But also to make sure that all the conditions concerning your partnership are clear to both parties. If you are wondering what contract you are going to draw up with your dropshipping supplier. An online sales contract should therefore be able to meet your needs.

The essential elements in a contract with a dropshipping supplier

The dropshipping contract with the supplier is the legal document that will govern your collaboration with your suppliers. It is the guarantor of legal certainty in your commercial relations. Therefore, when drawing up this very important document, you must ensure that you include some crucial points. In dropshipping, for example, the following information is often included in a contract with the supplier:

• The identification details of the e-tailer and the supplier. The identification and location of the supplier as a legal entity is essential to protect your interests. But you should also mention the name of the entity that will be responsible for the preparation, delivery and follow-up of your orders.
• The purpose and duration of the agreement. 
• The rules for selecting and managing the products that will make up your catalogue. This is essential for you to be able to find the right items for your platform. While having the possibility to expand your niche in the future. You should therefore indicate in your contract your needs so that your supplier can meet your requirements.
• The modalities for transferring orders. This point is crucial to ensure customer satisfaction. You must therefore agree with your partner on the deadline for taking the order, its preparation and the recourse in the event of the article being out of stock. 
• The terms and conditions for delivery of the packages and the charges that apply to them. This element is also essential for the satisfaction of your buyers and the success of your project. This is why you need to discuss it with your dropshipping supplier so that you can give the required information to your buyers. This way, you can avoid disputes due to lack of information. But by knowing the costs of delivery, you can better define the price of your items.
• How to return goods. This section is an important part of the agreement between you and your supplier. It allows you to remedy the non-conformity of products with requests. Both parties should therefore establish the rules to be followed to ensure that this process runs smoothly.
• The value of the commission. By opting for dropshipping, you sell the supplier's products. You will therefore earn a commission for each item your customers have purchased. It is important to set this commission before the launch of your e-shop. A negotiation between you and your partner will take place so that both parties can find a good deal. Don't forget to specify whether the commission applies to a price including or excluding VAT.

The importance of drawing up a dropshipping contract with your suppliers

Like all internet transactions, with dropshipping you are not immune to scams. This is why a contract with the dropshipping supplier is necessary. It will give you a more secure framework for setting up your online sales platform. Indeed, the document can be used to assert your rights in the event of a dispute with your supplier. But it will also enable you to guarantee the satisfaction of your customers. And this, whether in terms of delivery time, conformity of the articles to the orders and information on your site. But also in terms of returns of the goods. It is important to note that even if you use the internet. You are a trader by law. You must therefore comply with certain obligations. And the contract with the dropshipping supplier can help you at any time.

Conclusion

The drafting of a collaboration agreement with your dropshipping wholesaler is therefore essential. It ensures your security and the satisfaction of your customers. This is why you should take the time to negotiate the terms of this contract before launching your site. With Minea, you can easily find suppliers for your e-shop.