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Becoming an unauthorized Shipping Agent

Reducing your shipping costs, by making it a profit center

         

lgn1

3:09 pm on May 26, 2020 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Right now we operate out of a warehouse, but we are looking at adding a retail location.

We like to put our eggs in several baskets, and with a retail location, we were thinking of providing a shipping service, as an additional revenue stream. We are using a shipping reseller and are getting excellent rates, so we have plenty of room to skim some profit off the top., plus we can heavily undercut everybody else on shipping supplies due our volume with the e-commerce operations.

The shipping reseller (a major one) said they had no problems with this, despite the fact they have a clause in the boiler Terms of service, saying no reselling of shipping services, and it's just a CYA clause, so we are authorized to become an unauthorized shipping agent as far the shipping reseller is concerned.

As a caveat, i was talking to marketing instead of legal, so this whole thing could go south, but I have the entire conversation recorded.

The way I look at it, people can use these services directly and get the savings, and we are providing a service for them to generate a shipping label, as alot of people rather have the work done for them for a few bucks, rather than using a piece of shipping software which in most cases is non-intuitive in a lot of cases.

not2easy

4:00 pm on May 26, 2020 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



talking to marketing instead of legal
Local (and national) laws are what matters and they vary from one place to another. This forum does not offer legal advice, just considerations. That said, I would be talking to not only the shipping services' legal department but to your own legal services provider and to your insurance supplier. Sales people are often allowed an undefined level of 'puffery' to make a sale and what they tell you is not legally binding in most cases.

It sounds good, but look into responsibility and think of worst case possibilities, to make sure that it would not leave you vulnerable.