February 21, 2021
Security of cooperation with a supplier in the dropshipping model
We have written about how running a store in the dropshipping model in a separate article. Now we will discuss the issue related to the exchange of data between the store and the dropshipping warehouse.
Selling in the dropshipping model
Recall that in this sales model it is the wholesaler with whom you cooperate that sends orders directly to the target customer. This involves the transfer of your customer's data to a third party. What should you keep in mind so that everything is done safely and legally?
The contract between the online store and the wholesaler/warehouse
1. the parties to the contract
2. the subject matter of the contract
3. the procedure for placing orders
4. the method of transferring placed orders to the supplier - it is worth specifying what integration systems you will use, how to transfer inventory, product data, who is responsible for their maintenance, whether the exchange of data is done on the basis of file exchange or interface
5. payment methods and their handling
6. costs, delivery times and methods - delivery times in particular are worth looking into. In the terms and conditions of your store, you can't have a shorter delivery date than the one guaranteed by the wholesaler, because ultimately you will be responsible for failure to meet the delivery date to the customer. Also, the delivery methods must be consistent.
7. the way orders are packaged - it's worth specifying who is responsible for providing the packaging, whether and what standards it should meet, whether it will have your company's logo, etc. Most wholesalers use their own packaging to ship goods.
8. the dropshipping model adopted by the parties - who is the vendor for the end customer.
9. return of goods, warranty and guarantee and complaint procedures - if you would like the returned or claimed goods to go directly to the wholesaler who ships the goods, such a provision should be in the contract, as should the method of settlement of returned goods. It will be on your side to properly inform the customer of the correct address for returning the product (terms and conditions, website, return form).
10. the scope of rights and obligations of the seller and supplier
11. the relationship of the parties to the contract to the end customer - who is obliged to fulfill information obligations to the end customer
12. reservation of business secrets
13. records that meet the information requirements of the RODO - according to them, the user should be informed about, among other things:
the purpose of processing (the primary, but not the only, purpose of data processing in an online store is to fulfill the sales contract);
the period of data processing;
the recipients of the data, i.e. the entities to which you share the user's personal data. Such recipients may be, for example, the provider of software for running the online store, an external accounting firm you use and to which customer data contained in invoices may go, or the staff of your store, cooperating with you on a civil law basis (e.g. on a contract of mandate or contract for specific work) - if they receive access to user data.
With the wholesaler you should conclude a so-called contract of entrustment of personal data processing. It should include: the type of personal data transferred, the categories of data subjects, the obligation of the wholesaler to process data only on your documented instruction, the obligation of the wholesaler to use appropriate technical and organizational measures so as to ensure the security of processing.
Remember that all these formalities are not just paperwork you have to fulfill. Their compliance protects not only your customer, but also you from possible legal consequences. Also remember about the terms of withdrawal from the contract concluded with the supplier, how to claim.