Removing a Product from its Packaging to Sell - Legal Minefield?

Fukuyama

Hi guys,

Not really a legal issue - just more or a general business issue I'm facing.

I have an idea for a business that I'm bouncing around. Basically, I want to sell an existing product that is normally bought in retail - except I want to sell it online.

No real issues, except for postage.

The product itself is quite small but the packaging it comes in is unnecessarily bulky (I'd even say wasteful). This would bump up postage costs to a point of making it noncompetitive with retail.

So my question is - are there any issues with removing a product from its packaging before posting it to the customer?

I'm not trying to hide a brand name or pass it off as my own making or anything like that. I'd also be quite explicit about the fact that the product is of the original company's making. The main problem is the stupid size of the retail packaging.

Is this illegal or unethical?

Cheers,
Dean.

enviro

Depends on the product category, Is it a FMCG?

Graham

I would expect your returns rate to go up dramatically if you're removing the product from it's original packaging. Make sure you include a cost element for the increased returns when you're working out your profitability.

From the sound of it, you're not buying the product with a sufficient margin to make it a worthwhile venture.

Personally, if I purchased a product online and it turned up in anything other than the complete original packaging, you'd be getting said product straight back. I'd be thinking knock-off, stolen, reconditioned, 2nd hand or just generally dodgy ..........

Fukuyama

enviro wrote: »

Depends on the product category, Is it a FMCG?

It is - but not something people would be buying every day and there's a good margin.

Graham wrote: »

I would expect your returns rate to go up dramatically if you're removing the product from it's original packaging. Make sure you include a cost element for the increased returns when you're working out your profitability.

From the sound of it, you're not buying the product with a sufficient margin to make it a worthwhile venture.

Personally, if I purchased a product online and it turned up in anything other than the complete original packaging, you'd be getting said product straight back. I'd be thinking knock-off, stolen, reconditioned, 2nd hand or just generally dodgy ..........

Unlike most FMCG, this one has a really good margin and I can acquire it at a good price. Maybe not as good a price that the big guys get it at, but I won't have their retail overheads.

I'd still be able to undercut the big retailers on price if I shipped in its original packaging. But I really want to blitz their pricing and get good customer loyalty by pricing competitively.

I have a few ideas to reassure customers that my products aren't dodgy or imitations. Although it's still a concern. I plan on explicitly stating that we remove the product from its packaging so we can offer the customer FREE POSTAGE within Ireland and the UK. I'm hoping most people will see our way of thinking and realise that they'd just remove the product from its packaging and throw it away within five seconds anyway. The packaging really offers nothing of value to the customer (no instructions or anything like that).

My main question is a legal one however. Could a company force me to stop selling their products if I sell it out of its original packaging (but explicitly stating it's their product)??

UDP

I am not aware of anything that would legally stop you re-selling without the original packaging unless it is medicine, software or something like that. You are just acting as a reseller and if they wanted to stop you they would have to cut your supply so if that is a problem then you could be shut down this could be a problem if there are only a few companies that the manufacturer license to sell their product.

Fukuyama

UDP wrote: »

I am not aware of anything that would legally stop you re-selling without the original packaging unless it is medicine, software or something like that. You are just acting as a reseller and if they wanted to stop you they would have to cut your supply so if that is a problem then you could be shut down this could be a problem if there are only a few companies that the manufacturer license to sell their product.

Good to hear. My products aren't anything like medicine or anything tightly controlled like that.

I don't they would cut me off. There really is no reason for them too. And even if they tried, it'd cost them billions.

Thanks guys! I really appreciate the help!

Grudaire

If it's food/electronics or something would there be a risk of liability if someone got sick (food poisoning) or injured?

Spice Girl

Have you already shipped one of the products to yourself, sans packaging? Does the product require bulkly packaging for shipping? Always a good idea to do a test shipment

GerardKeating

Dean0088 wrote: »

Hi guys,

Not really a legal issue - just more or a general business issue I'm facing.

I have an idea for a business that I'm bouncing around. Basically, I want to sell an existing product that is normally bought in retail - except I want to sell it online.

No real issues, except for postage.

The product itself is quite small but the packaging it comes in is unnecessarily bulky (I'd even say wasteful). This would bump up postage costs to a point of making it noncompetitive with retail.

So my question is - are there any issues with removing a product from its packaging before posting it to the customer?

I'm not trying to hide a brand name or pass it off as my own making or anything like that. I'd also be quite explicit about the fact that the product is of the original company's making. The main problem is the stupid size of the retail packaging.

Is this illegal or unethical?

Cheers,
Dean.

give two prices one the website,

1. one (higher) with full origional packaging.
2. One (lower) with your reduced packaging.

Let the buyer decide if they want to pay the extra.

ssbob

Parcel Motel any good for you?

Is there any way of contacting the company and seeing if they have alternative packaging options? For FMCG I am not sure how you are able to blitz retailers on price, normally this type of product is low margin?

Fukuyama

ssbob wrote: »

Parcel Motel any good for you?

Is there any way of contacting the company and seeing if they have alternative packaging options? For FMCG I am not sure how you are able to blitz retailers on price, normally this type of product is low margin?

I've actually been looking into some kind of integration with Parcel Motel - but it's still in the idea stage. I've used PM a few times for personal reasons and found it to be a great service, though.

95% of FMCG have crap margin and couldn't be sustained on a webstore (at least no yet). But there are some that the general public don't really know about that have a few hundred percent margin. There's some kinks to work out, which is what I'm doing right now, but hopefully I might get something out of it.