Drop Shipping Contract Template

If you’re looking to start a drop shipping business, one of the most important things you need is a drop shipping contract. This contract outlines the terms and conditions of your relationship with your suppliers, and it helps ensure that you are both on the same page when it comes to critical issues like payment, delivery, and returns.

While there is no one-size-fits-all drop shipping contract template, there are several key elements that should be included in any agreement. Here’s a breakdown of what you should consider including in your own drop shipping contract.

1. Product Information

The first thing you need to include in your drop shipping contract is a detailed description of the products you’ll be selling. This should include information like product name, SKU, and any other relevant details (such as color, size, or weight).

2. Payment Terms

Another essential element to include in your drop shipping contract is payment terms. This should outline how and when you will pay your suppliers for the products you order, as well as any fees they may charge you for drop shipping services.

3. Delivery Information

Your drop shipping contract should also include details about delivery. This should cover how and when the products will be shipped, who is responsible for shipping costs, and any other relevant information about the logistics of getting products to customers.

4. Returns and Refunds

Inevitably, there will be times when a customer wants to return a product. To ensure that you and your supplier are aligned on this issue, your drop shipping contract should clearly spell out your respective policies when it comes to returns and refunds.

5. Exclusivity and Non-Compete

To protect your business, you may also want to include an exclusivity clause in your drop shipping contract. This would prevent your supplier from selling to any of your competitors. You could also consider including a non-compete clause that would prevent you from selling similar products from other suppliers.

6. Termination

Finally, your drop shipping contract should outline the process for termination. This would cover what happens if either you or your supplier wants to end the relationship, as well as any consequences (such as fees or penalties) for terminating the agreement.

In conclusion, a drop shipping contract is essential for any business looking to start a drop shipping operation. While the specifics of this agreement will vary from business to business, including the elements listed above will help ensure that you and your supplier have a clear understanding of your relationship, and can avoid costly misunderstandings down the line.