Pet distributor giant Bradley Caldwell announced in an email today that they were raising their drop ship fee for items under $25 from $2 to $7.50. This would mean that the dropship fee, in some cases, would cost more than the item, all but eliminating the sale of those items unless retailers who use their service are willing to take the loss.The email was sent by BCI eCommerce Coordinator Danette Kusek, and stated: “Good Afternoon, Starting December 3rd Bradley Caldwell will be implementing a $7.50 handling charge for orders submitted under $25.00. Orders above the $25.00 will only be charged our 2.00 handling charge. Thank you for your patience and understanding.”
The response was swift and outraged, including such comments as: “Ouch, Are you trying to get rid of all the small drop shipments?”
“BCI is getting out of control”
“What?! Is Bradley trying to do close me down?”
For those just joining in, Bradley Caldwell is a huge pet supply distributor that offers a comprehensive drop ship program for everything from cat treats to fish ponds to horse blankets to hamster cages and more.
Typically, retailers, and online retailers inparticular, pay an annual fee of $175 to license and download proprietary software called “Bulls Eye”, that allows access directly into the BCI inventory in real time, where orders are placed, shipped and tracked.
With increasing cost pressure from what I assume to be rising fuel and delivery costs, the drop ship method of selling pet supplies will continue to feel pricing pressure as drop shippers try and protect already all-too-thin profit margins.
What’s your thoughts?