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Drop shipping business conduct
Initial steps to facilitate the proper growth and development of a
drop shipping business. Starting with step one leading all the way to
step 5 with all the estimated prices listed alongside.
How the business would work?
A website is setup where the site owners (parties currently present)
would put up products for sale. After purchase clients will send in
the money and provide their physical location and an additional
charge for shipping or add the price of the shipping to the product
and let the client select the free shipping option. The funds provided
by the client will be used to purchase the product they have ordered
from the manufacturer/seller (In Asia/Africa) and ship it in through
our company. The product is sent to the client and the profits will be
kept by the company. Canadian law dictates that any product below
CAD20 will not be taxed for entry into the country, products above
CAD20 will have to pay GST (Goods and services tax) of around 5%
of the product. A product below CAD20 will not apply for HST
(Harmonized Sales tax) and a product above CAD20 will activate
HST paying 15% of the value of the product. Handling
fees/Processing fees depending on the courier could be charged.
After taxes have been paid, the client has received their product, the
money left is the profit the company would have made.
An example of this
-Sarah wants to buy a nice shirt she saw on the company's
website.
-Sarah buy the shirt and is given an estimate of when the order
could reach her doorstep.
-Sarahs funds are received in the company's account
(PayPal/stripe/etc.)
-The company purchases Sarahs shirt for her and the supplier
ships it in from (e.g.) Asia and facilitates and makes sure the
client receives their shirt.
-The company pays the necessary fees such as tax and duty tax
for the product and keep the profits.
The following are Steps showing how this
could be implemented
Step One-Companies Identity
i)Company name-A proper business name for the drop shipping
company, due to limited funds it would be costly to hire an
individual/company to come up with a name for the company and
all parties involved will have to come to an agreement to see a way
forward.
ii)Company logo-The company could potentially proceed with
business conduct without an official logo for the early stages of the
company's growth, however one would need to be made for
professional reasons.
Step two
i)Website-The Drop shipping company would need to set up a
website that acts as a medium between, the supplier and the
current stating any reasonable price on the website.
ii)Website Costs-Could range from $50USD-$150USD for a simple
drop shipping website. (The proper breakdown of the funds will be
put on the final page of the document.
Step three
i)Account Connection-There is an account connected to the
website where the company will receive its funds from the
purchases people make. This account could be PayPal/stripe/cash
App/etc.
Step four
i)Shipping-The client provides their address and an option for free
shipping which would come with an added cost to the price of the
product however (this is only to the knowledge of the company the
parties involved).
ii)Customer satisfaction-The client receives their product and
leaves a customer rating. Added bonuses could be put into the
website with referral links that reward successful individuals.
Step five
i)Taxes-Pay appropriate taxes-GST, HST and Handling fees to
couriers.
The following is the breakdown of the costs of the
website
Domain Name: Typically costs around $10 - $20 per year.
Hosting: Costs can range from $3 - $10 per month for shared
hosting, or higher for VPS hosting depending on traffic and
performance needs.
Website Platform: Using platforms like Shopify, WooCommerce
(WordPress), or other specialized drop shipping platforms:
Shopify: Starts at $29 per month.
WooCommerce: Free to install, but you may need to purchase
themes or plugins.
Design and Themes: Costs for a pre-built theme or custom design
can range from $0 (using free themes) to $200 - $500+ for premium
themes. Custom designs can cost significantly more.
Payment Processing: Fees for payment gateways like PayPal, Stripe,
etc. ,typically range from 2-3% + transaction fees.
Estimated Total Costs:
Initial Setup: $100 - $500 (including domain, hosting, basic
platform)
Monthly Operating Costs: $50 - $200+ (hosting, platform fees,
marketing)
T`s&C`s1.Introduction-Welcome to our dropshipping services. These Terms and Conditions govern your use of our services. By using our services,
you agree to these Terms and Conditions in full. If you disagree with any part of these terms, please do not use our services .2.Services-Order Processing:
We will process orders received from your customers on your behalf.Product Listings: We provide product listings, descriptions, and i mages for your online
store.Shipping: We arrange shipment of products directly to your customers.Returns and Refunds: Our return and refund policies apply to products sold
through our dropshipping services.3. Fees and Payments-Dropshipping Fee: You agree to pay us a dropshipping fee for each order processed.Currency: All
fees and payments are in USD/CAD.4. Responsibilities-Your Responsibilities: You are responsible for marketing, promoting, and selling products through
your online store.Customer Communication: You will manage customer inquiries and issues related to orders placed through your online store.5. Product
Information and Availability-We strive to provide accurate product information, including descriptions and images. However, we do not warrant that product
descriptions or other content on our website is accurate, complete, reliable, current, or error-free.We reserve the right to discontinue any product at any
time without notice. Prices for all products are subject to change.6. Intellectual Property-Ownership: We retain ownership of all intellectual property rights
related to products and services provided through our dropshipping platform.Use of Materials: You are granted a limited, non-exclusive, non-transferable
license to use product images and descriptions solely for the purpose of marketing and selling products through your online s tore.7. Limitation of LiabilityTo the fullest extent permitted by law, we shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including but not
limited to loss of profits, revenue, or data, arising out of or in connection with our dropshipping services.8. Termination-Either party may terminate this
agreement with 30 days notice.Upon termination, you must immediately cease using our dropshipping services and remove all product listings provided by
us.9. Governing Law-These Terms and Conditions are governed by and construed in accordance with the laws of Canada.10. Amendments-We reserve the
right to amend these Terms and Conditions at any time. Amendments will be effective immediately upon posting on our website.1 1. Severability-If any
provision of these Terms and Conditions is found to be invalid or unenforceable, that provision shall be deemed severable from these terms and s hall not
affect the validity and enforceability of any remaining provisions.12. Entire Agreement-These Terms and Conditions constitute the entire agreement
between you and us regarding your use of our dropshipping services and supersede any prior agreements or understandings.13. Contact Information-For
questions or concerns about these Terms and Conditions, please contact us at [TBA].
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