A U.K. distributor of electronics meant for resale will end its drop-shipping service after offering it for five years.
Activ8 posted a notice on its homepage that it will stop its drop-shipping service March 1, although the company says it will continue to be a source of affordable inventory for online sellers.
"Firstly, we would like to thank those customers who have used the [drop-shipping] scheme, and hopefully we have helped a number of businesses grow," Activ8 notes on its Web site. "The reason for our decision has come largely in the wake of the recent weather conditions and postal strikes of 2009. We cannot justify the low margins for the amount of administration work that has arisen due to non-delivery in these times."
Activ8 officials did not respond to an e-mail inquiry from Auctiva EDU by press time. However, the company's Web site states sellers affected by this change will be offered several alternatives, including "sale or return offers" and lower rates for customers.
"We still hope to be able to offer less risk and better service than our competitors in the market," the company notes.
Activ8 encourages customers to contact the company with any questions or concerns they may have.
Still, users may not get the message in time to react. One Activ8 customer says the company has done little to let users know about its upcoming change, despite the impact this will have on some.
"Needless to say this will have a big impact on those of us who use them, and could well close a few stores down completely," the seller writes. "Activ8 has only announced it on their front page and has not bothered to e-mail their clients, so if you don't go in via the front page, you won't know anything about it."
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Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.