Dropshipping Terms and Conditions

Establishing dropshipping accounts:

By default, all retailers with an active dropshipping subscription will have access to all items listed in the dropshipping section of the Modalyst platform. If you are on the “Hobby Plan,” retailers can add up to 5 products from the Modalyst Marketplace. If you are on the “Pro” or “Business” Plans, you can add unlimited products from the Modalyst Marketplace. At any time, suppliers can decide to not work with a retailer for any number of reasons. When such a situation occurs, the retailer will be notified that the supplier is no longer interested in working with them. At this point, the retailer is expected to remove that supplier’s items from their store. If the retailer is using the Shopify app, these items will automatically be removed from the retailer’s store. The supplier has no obligation to fulfill any future orders from this retailer. If the retailer would like to resume working with the supplier at a later time, they can submit a request three months later. The supplier can re-initiate the working relationship at any time.

Payment for Products:

The "Item Cost" associated with each product is what the retailer will pay the supplier when an order is placed. The retailer can choose to mark-up the "Item Cost" according to the "Pricing Rules" the retailer sets in his/her account. Regardless of what the retailer sells the item for on his/her website, the retailer will always pay the "Item Cost" to the supplier.

Transaction Fees:

Modalyst charges a transaction fee of either 5%, 2% or 1% on dropshipping sales based on your plan type (Basic, Pro, Premium). Fees are based on the price which the item sold for in a retailer’s store.

Shipping:

The Modalyst Marketplace follows flat rate shipping on a per Supplier basis. Across the Modalyst Marketplace, there is a limit to the shipping costs depending on the region from which the item is being sent. For example, US to US shipping has a limit of $5, plus a max of $0.75 per additional item sent by the same supplier. Suppliers therefore, can adjust the cost below $5 but can not exceed $5 for domestic shipping.

There are some suppliers that are exempt from the limit due to the weight and size of the items they ship. For example, furniture and men's shoes.

Please note the shipping cost in the "Item Detail" page of each item. Retailers are required to pay the stated shipping rate with the cost of goods purchased. Suppliers are not responsible for shipping costs. When the retailer pays for the items, the shipping costs will be automatically added to their invoice. Once the product has been shipped to a customer, the supplier is required to include the tracking number on Modalyst under the record of the purchase order.

Product availability and processing times:

All products listed in a supplier’s dropshipping showroom are available for dropshipping as long as the supplier agrees to work with the retailer. If a product is unavailable for dropshipping, the supplier will promptly remove this product from their dropshipping showroom. Retailers will receive daily updates about any changes to a supplier’s dropshipping showroom and are responsible for updating their online store accordingly.

Suppliers will indicate their processing times as well as their delivery times on their dropshipping profile. Retailers should review these processing times and delivery times prior to engaging in a dropshipping relationship with a supplier. Please note that processing times + delivery times is the estimated time it takes to get an item to your customer.

Product imagery:

As long as a retailer maintains an active dropshipping account with a supplier, the retailer has permission to download the supplier’s imagery to upload to their online store. All copyright of images and designs belongs to the supplier. Any use of photos is for the sale of items produced by the supplier.

Returns:

Modalyst suppliers follow a 14-day return policy during which a customer may return an item that is undamaged, unworn, and unused with tags still attached within 14 days from when the item was received The supplier will also provide a return/refund policy for any damaged or defective items as long as any claims are placed within the agreed upon 5 days of the item being received. Customers will contact the retailer with any requests for return and the retailer will then contact the supplier. For more on returns, please see our Help Center.