Is Dropshipping Allowed? Or Not?

Irrational behaviour and incomprehensible decisions 101 - this is the place. If they're really silly, you could win a chocolate fish.* (* Highly unlikely and they're only virtual chocolate fish)

Post Reply
User avatar
marika3
Scambuster
Posts: 4290
Joined: Tue May 11, 2004 7:06 am
Location: Auckland
Contact:

Is Dropshipping Allowed? Or Not?

Post by marika3 » Sat Sep 07, 2013 2:41 am

I have no idea when new part of TM rules was introduced - there is no site announcements on that.
But any way, this is as interesting as confusing.

First part:
http://www.trademe.co.nz/help/767/on-behalf-shipping" onclick="window.open(this.href);return false;
On-Behalf Shipping

On-Behalf Shipping occurs when a seller owns the goods they are selling at the time they list them, but does not have those goods in their possession. When the goods sell, the seller arranges for the goods to be shipped to the purchaser directly. The seller may never see the goods.

Traditionally, Trade Me has taken a hard line on members caught selling goods not in their possession, due to the risk posed to buyers.

Over time, e-commerce has evolved to the extent that some sellers are well placed to offer goods for sale that aren't in their possession, in a safe and efficient way. By allowing this in controlled circumstances, buyers may see better prices and greater choice available on Trade Me.

To keep the Trade Me marketplace trusted and safe, our Trust & Safety team run a few checks on traders applying for On-Behalf Shipping approval. Approved sellers are required to become Trade Me Stores and sign a separate agreement with Trade Me, over and above the standard Trade Me terms and conditions.

Apply to become On-Behalf Shipping approved

To express interest in becoming approved to on-behalf ship you can email us. Please be sure to provide your Trade Me username, describe your business model and where your stock is physically located. Our Trust & Safety team will then be in touch directly with more information.

Please note: in order to on-behalf ship on Trade Me, members require express written approval. Memberships caught On-Behalf Shipping without approval may be restricted or disabled.

Key things to note:

To become On-Behalf Shipping approved, you will need to qualify and become a Trade Me Store. To qualify as a Trade Me Store you need a minimum of 50 feedback and a feedback rating of 98% positive or higher at all times.
Applicants will need to go through a few checks from Trade Me’s Trust & Safety team. This may include the applicant demonstrating that they have run a successful On-Behalf Shipping model in the past.
Approved members can only offer Pay Now as a payment option for added security.
Approved members must state the origin of the goods and the estimated delivery timeframes.
The seller must agree to accept any responsibility for returns or faults, and will not defer the buyer to the supplier.
This means that sending goods from remote warehouse is allowed (with written TM permission) for TM Stores only.
Many sellers on TM use OMNIS to dropship locally (ie seller in ChCh and goods sent from Auckland).
Do they have to become TM Store to continue?

Second part:
http://www.trademe.co.nz/help/775/on-be ... ions?h=775" onclick="window.open(this.href);return false;
On-Behalf Shipping terms & conditions
These terms apply to sellers who have been approved for On-Behalf Shipping in writing by Trade Me, and apply to those sellers in addition to the Trade Me terms and conditions and the Trade Me Stores terms.

On-Behalf Shipping occurs when a seller owns the goods they are selling at the time they list them, but does not have those goods in their possession. When the goods sell, the seller arranges for the goods to be shipped to the purchaser directly. The seller may never see the goods.

On-Behalf Shipping terms

1. If you have received written approval for On-Behalf Shipping by Trade Me, then you may list items which you own but which are not in your physical possession, under the following terms and conditions. These terms and conditions are intended to help keep Trade Me a safe and trusted place to trade. If you do not accept these terms and conditions, you must refrain from On-Behalf Shipping.

2. You must, at all relevant times:
(a) Meet the requirements of being a Trade Me store, and be a current Trade Me store.
(b) Have ownership of any goods you list on the Trade Me website.
(c) Clearly and accurately describe where the goods are shipped from and how long they will take to arrive (an accurate estimated delivery time is sufficient).
(d) Provide accurate shipping costs and clearly outline whether there will be any Customs duty and/or GST payable on the item.
(e) Ensure the value of the item being shipped is described on the package dispatch information.
(f) Offer Pay Now as the only payment option in any listings where you use on-behalf shipping.
(g) Act responsibly and promptly to fix any product faults within a reasonable time after the sale (other than those caused by unreasonable use) or offer a replacement or refund.
(h) Comply with any additional conditions notified to you in writing by Trade Me that are relevant to your specific circumstances.

3. These terms may be updated from time to time in order to help keep Trade Me a safe and trusted place to trade and to protect the integrity of the Trade Me marketplace.

4. Trade Me may review your status at any time and withdraw approval for On-Behalf Shipping if you breach these terms and conditions or where Trade Me considers it appropriate, including to assist in ensuring a good buyer experience.
As you may see, seller must have ownership of goods at the time of listing. And only being a store, and with written permission from TM, seller can offer shipping from afar.
But dropshippers never own goods - they list and sell goods owned by supplier, then get paid by buyer and transfer payment to supplier (less commission), and then supplier sends goods to buyer directly.

Now, you clever minds of online auctions world, please explain:
Is dropshipping effectively prohibited on TM - including OMNIS users, stores and Joe Blogg dropshippers?
Is "on-behalf" shipping in TM terms means a company with own goods stored in a warehouse somewhere and nothing more?

And, most interesting questions:
How can TM police if a store with "on-behalf shipping" owns goods or just dropships for comission?
Will TM push all OMNIS and Easylister sellers to become stores or will just close this dropshipping practice breaching their 2.(b) policy above?
http://www.oneway.co.nz/member/marika3

Post Reply

Who is online

Users browsing this forum: No registered users and 2 guests