Ecommerce set-up question.

I know someone who sells promotional stuff. He is setting-up an ecommerce site that I have had a look at and he wants it set-up so customers pay a £50 online deposit at the point of ordering and then he will invoice them for the balance before despatching the goods.

I think this is a crazy idea for several reasons but he is adamant he wants to go down this road. Are you aware of anyone else who does similar? Would you recommend it?

Ive worked in ecommerce long enough. Its not a pricing model ive heard of.

Any particular reason why he cant collect through a payment gateway at pos? Whats he selling?

---------- Post added 18-12-2014 at 01:41 ----------

Is it because he holds no stock or very little? Ecommerce solutions have stock extensions or plugins that sometimes link to warehouses and automate the sales process. Depends on the supplier terms however.

For promotional goods i can see why HE would want to go down this road but from a customer perspective no one else is creating this block so customers will go down the path of least cost/resistance.

Creating a printed draft of the products takes time, skill and cost with photoshop etc and then contacting suppliers to find suitable products and stock levels. Cancelled orders otherwise leaves you with nothing so a £50 search fee would not be the end of the world.

The £50 deposit would only work if all promotional product companies did something similar but they don't, they offer artwork drafts for free, sourcing for free, a free sample and often free delivery. He will soon find the plan does not work and probably blame you so I would avoid this project if he does not change his mind.

Thanks for the advice. I have set-up his 'shop' to sell the items, business cards, air fresheners etc. in 500, 1,000 units with artwork and courier delivery added, then he changes his mind and says he wants it all re-doing. The customer would have to tick something to agree to pay the balance surely?

I think you are right. I have to tell him I don't want to do it.