Premium Pricing on Drop Ship Orders
Definition
Drop ship programs charge more than case pack quantities to compensate for low-volume handling, eroding margins in footwear wholesale.
Key Findings
- Financial Impact: 35% discount on retail but 20-50% premium vs bulk wholesale (AUD 10-30 extra per pair)
- Frequency: Per single-pair order
- Root Cause: No minimum order quantity leads to fragmented, unbundled shipments
Why This Matters
Wholesale Footwear businesses in Australia 🇦🇺 overpay AUD 10-20 per pair vs bulk. Automation of order aggregation reduces to bulk rates.
Affected Stakeholders
Procurement, Operations Manager
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
High Return Costs from Sizing Issues
Lost Sales from Delivery Delays
GST/BAS Errors on Dropship Imports
Defective Product Chargebacks
Vendor Chargeback Disputes
Incorrect Tariff Classification Penalties
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