FAQ's
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Why
Drop Ship at all?
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Certain items you may wish to ship yourself. You control the process,
so that option is always open to you on an order by order basis.
But if you do not already have the item in stock, or do not have
to provide special services, or combine it with other items in stock,
then Drop Ship is hard to beat. It speeds up delivery, eliminates
shipping and handling to your store, then again to the customer,
and the wholesalers can ship cheaper than you can.
The wholesalers have special equipment and processing lines established
to process orders more efficiently than any of us could hope to.
The fact that they have locations all over the country and load
the truck at their warehouses, makes the savings all the greater.
The problem with Drop Ship has been the paperwork and administrative
effort to get the order into the wholesalers systems. And that is
the problem DropDemon addresses.
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Why
is DropDemon required for ebooks?
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Ebooks are nothing more than electronically drop shipped books.
The existence of the DropDemon transaction handling infrastructure
made it possible for independent businesses to directly participate
in offering ebooks for the first time. DropDemon has the expensive
interface into the electronic data distribution systems, saving
participating BookSite businesses the individual 5-digit link up
fees and programming costs. Participants receive full (40%) retail
discounts instead of small associate referral fees (10%) and customer
raiding by dotcoms. DropDemon is the payment clearinghouse for eBook
offerings.
Caution, since eBooks are instantly and automatically downloaded,
and retailers instantly charged by DropDemon, it would be a good
idea to use CardDemon online credit card processing to make sure
you get paid first by the customer ordering eBooks.
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How
did DropDemon decide which wholesalers to use?
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DropDemon basically deals with anyone capable of providing quality
services and desiring to support independent retailers. The technical
requirements are significant and only a handful of wholesalers are
even capable of providing the service. Most of these services were
designed for Goliath online booksellers. We just turned the tables
to concentrate the programming and administration, so everyone can
use the services. The decision is also based on location, handling
fees, or product availability of the suppliers.
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Drop
Ship is expensive; can I afford it?
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If you charge the same for shipping and handling as most dotcoms,
you will probably breakeven or make a small profit on shipping and
handling fees.
Let's assume you wish to drop ship the hardcover edition of the
book "Cold Mountain" to a customer. It has a list price of $24.00
and is subject to a trade discount of 40%. DropDemon would charge
your store:
Item: Cold Mountain (24.00 less 40%) |
14.40
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DropDemon Processing fee: |
.75
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Shipping (estimate) |
2.00
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Handling |
.65
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Total
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17.80
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What you charge your customers for shipping and handling or the
discounts you offer is up to you. So the profit from the transaction
would be the difference between the combined item and shipping charges
you apply less the charges stated above. If you offered a 10% discount,
and charged $4.50 shipping and handling like most other online booksellers,
your profit would be:
Cost of Item to Customer (24.00 less 40%) |
21.60
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Plus Shipping and Handling |
4.50
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Total
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26.10
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Less Payment to DropDemon |
17.80
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Net Gross Profit
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8.30
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What
are the Fees for DropDemon?
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Set-up (one time fee) |
$25.00
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Handling Fees |
$.65- $0.95/ item
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Shipping Fees |
Actual Cost of Freight
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Transactional Fee |
$.75 / order
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How
do I place orders with DropDemon?
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DropDemon orders can be created from the View Orders module from
BookSite or entered at the store counter. DropDemon is an easy way
to provide shipping services for your customers, or to special order
low quantity items for your store.
To generate an order from the view orders module, go to the edit
order page for the order you wish to send. If the item is in any
of the warehouses tied to DropDemon a little demon icon will appear.
Select DropDemon as a shipping option in the drop down box, save
changes, and click done.
To generate an order from the store counter, use the drop ship
order entry page and repeat the process as above.
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What
about Returns?
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DropDemon charges a $10.00 return processing fee to cover administration
and shipping back to the wholesaler.
Returns are a pain on any shipped order, even if you ship it yourselves.
It is customary to offer a 30 day return period. We experience about
a 2% return rate. DropDemon offices are listed as the return location,
but many customers will return items directly to the store in any
event. The store may forward that return on to DropDemon if they
do not mind the extra shipping, administration and DropDemon return
fee. If the customer does return the item to DropDemon, you will
be notified so that you can issue the customer a credit, and DropDemon
will process the order and pass through the refund provided by the
wholesaler (less the processing fee).
Shipping, handling, and processing charges are not refunded to
the stores. Even though it is not customary to refund customers
for anything other than the purchase price of products returned,
many stores do offer more liberal standards.
EBook orders are non-refundable.
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How
do I know the customer has received the order?
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They will let
you know if they don't. The reason DropDemon requires all shipments
to tracking is to provide documentation for customer servoce. Just
go to your pending drop ship page and click on the transit routing
number to get proof of delivery. Again, using DropDemon does not change
your relationship with your customer. |
How
and when do I pay DropDemon?
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When DropDemon receives the order, DropDemon also creates the payment
for the order. This is a common transaction used in banking and
big business, called electronic funds transfer. It is nothing more
than an electronic check. Typically DropDemon will initiate this
electronic check about a week after the order is placed. You are
notified and invoiced by e-mail one day before processing. This
allows DropDemon to minimize costs and administration requirements.
Credit card payments cannot be used instead of electronic checks
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What
if I want to quit using DropDemon?
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You decide on each an order
by order basis whether or not to send it to DropDemon. There are no
minimum order requirements, and you only pay for the orders you send.
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How
does credit card work?
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You collect payment from your customers by credit card, on account
or anyway you choose. DropDemon does not deal with your customer,
DropDemon only deals with your business.
If you would like to add online credit card processing, BookSite
does offer CardDemon that is integrated into all of the BookSite
order processing services including DropDemon. This is an optional
service, but it does allow online verification and processing of
credit cards with a link to DropDemon so the online ordering processing
can be fully automated. CardDemon can also be used as a portable
cash register, and call center order entry feature, too. Depending
on how each participating business chooses to set-up the order processing
procedures.
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