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  1. #1
    Newbie
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    September 16th, 2009
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    Ohio
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    Drop ship Question
    What is the definition of drop ship marketing? How is it different than Affiliate marketing? Is drop ship used for a single product or multiple products?

  2. #2
    Tax Paying Member
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    November 14th, 2005
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    Chapel Hill, NC
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    Quote Originally Posted by newbie24
    What is the definition of drop ship marketing?
    You handle the sales tax issues.

    How is it different than Affiliate marketing?
    The merchant handles the sales tax issues.
    Is drop ship used for a single product or multiple products?
    Depends on how many products you wish to handle

    BTW....welcome to ABW.......this is the center of the affiliate marketing world
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  3. #3
    .
    Join Date
    January 18th, 2005
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    With drop shipping, YOU are the merchant, and YOU are responsible for processing payments, dealing with customers, handling disputes and returns, etc. Some "drop-shippers" will provide additional services (including handling customer contacts, perhaps even payment processing), but YOU are still the merchant.

    Affiliate marketing is merely a form of advertising: you carry merchants' advertising messages, and you are paid based on the transactions that originated from customers who clicked on ads on your site.

  4. #4
    Member
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    June 10th, 2006
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    Williamsburg, VA (USA)
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    Are any affiliate marketers accepting the payment then processing the order through their own affiliate link? There has been a little talk around here for issues where affiliate purchase is tied to bonus materials provided by the affiliate. It's both drop shipping and affiliate marketing, but is it a good idea.

    Best,

    Justin
    [i]Always interested in great B2B affiliate programs that serve Sales and Marketing professionals. Private message if you have something.[/i]

  5. #5
    http and a telephoto
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    January 18th, 2005
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    It depends on if the merchant allows you to do that. There are a lot of negatives to working that way actually. Once *you* accept payment *you* are responsible for collecting sales tax based on where you live, not just where the merchant is or where the order is shipped too.

    It can get very complicated. The best thing is to have links that are drop ship - you are the person with the shopping cart, the customer service and responsible for the order being delivered, and then you use actual drop ship merchants to fill the order.

    Choosing who to work with is the key because the customer is your responsibility once you take their payment. There are great companies to deal with and not so great companies to deal with, so it takes some research.

    I know many sites that blend affiliate marketing links with drop shipping but affiliate links still go to merchants, while the products the drop ship go to their own shopping cart.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  6. #6
    Member
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    June 10th, 2006
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    Williamsburg, VA (USA)
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    Debbie,

    Thanks, I appreciate the reply. What I'm trying to avoid is visitor confusion when some products in a catalog require a link to a separate site to purchase. I don't mind managing payment, taxes, as long as I'm putting buyers on my list. On the back end I can always send them directly to affiliate sites -- but on one site want to own the whole transaction.

    Sincerely,

    Justin
    [i]Always interested in great B2B affiliate programs that serve Sales and Marketing professionals. Private message if you have something.[/i]

  7. #7
    http and a telephoto
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    January 18th, 2005
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    I can tell you that it works for other people and the sites were very successful. As I said, you would need to work with the individual merchants if you are collecting money and making sales yourself on their behalf. Some merchants would not allow that kind of arrangement as it is more confusing to have a customer buy things from you that end up coming from elsewhere, or their order comes from a bunch of different places without any warning.

    Some merchants with affiliate programs might not want to be represented on sites in a drop ship type of arrangement. They own the customer, not you. Your privacy policy needs to be very specific about who you are sharing customer information with, who is getting the credit card info, and personal info like address and email.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  8. #8
    Newbie
    Join Date
    January 6th, 2010
    Location
    Ottawa
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    4
    Quote Originally Posted by hittjw
    Debbie,

    Thanks, I appreciate the reply. What I'm trying to avoid is visitor confusion when some products in a catalog require a link to a separate site to purchase. I don't mind managing payment, taxes, as long as I'm putting buyers on my list. On the back end I can always send them directly to affiliate sites -- but on one site want to own the whole transaction.

    Sincerely,

    Justin
    I'm new to this too, but I don't know if it would help to put in a little notice letting them know that they will be redirected to a new site? Don't know if that will solve your problem, but it may help people from getting confused. Just a suggestion!

  9. #9
    Member
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    June 10th, 2006
    Location
    Williamsburg, VA (USA)
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    53
    Debbie,

    Thanks again, I could work out a direct relationship. After the order I avoid some of the confusion for drop-shipped products by sending order confirmations (email and postal) to explain the relationship.

    Merchants might be a upset because they won't have customer information because I'd order with my companies credit card shipped to the customer. That's why I don't mind handling the taxes because I'll own the customer (not just the prospect) and can expand the relationship.

    Will probably want to talk with some merchants before I try to do this.

    LinkSurfer,

    You make a good point, I'll at least make a statement on my site that some links are for products provided buy partners (selected because of their value to my visitor) and you may leave this site. Links already open in a new window, but it's not clear that products come from another company.

    Sincerely,

    Justin
    [i]Always interested in great B2B affiliate programs that serve Sales and Marketing professionals. Private message if you have something.[/i]

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