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Report: #577061

Complaint Review: Shipwire - Internet California

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  • Reported By: Tim. — Miami Florida United States of America
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  • Shipwire 2185 Park Blvd Internet, California United States of America

Shipwire Sign Up for a Free Plan, They Later Bill You What They Want. Bait and Switch 2.0? Internet, California

*Author of original report: Rebuttal to My Orignal Report

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I signed up with Shipwire in June of 2006. I created a limited edition collectible toy and looked to sell them. Like most, I didn't have a warehousing and fulfillment department and wanted to automate my online sales. I found Shipwire online and signed up with them. It was easy. $1 for Lick and Stick. Basically, I shipped my merchandise to Shipwire and they would receive it for free. I paid a Shipwire $1 to ship each unit and there was no limit on the quantity of units per month and no contract. I would also pay them whatever the shipping costs were per unit. I had to keep a balance in my Shipwire account that they would deduct shipping costs from. The shipping balance would be replenished when the shipping account balance dropped lower than $100.00. Apparently the bulk of their revenue model was based on profits from reselling bulk shipping rates. It was a great deal. Since my merchandise took up quite a bit of space, we agreed that I would also pay additional fees for the additional space. This was all discussed with Alex Sverdlik, at the time my account supervisor, and Damon Schecter, the CEO. All was good. They even asked if they could feature my company on their website as a Shipwire customer. They were all very helpful.

However, since then it hasn't been easy at all. Like most small companies in the US, the economy hit hard and in November of 2009, last year, I contacted them letting them know that I needed to close my account and remove my merchandise (1356 total units). It took them 4 days to respond to the request. They informed me that my current plan only allows me to ship 8 units per month. To remove my merchandise, I'd need to upgrade my membership to one that would allow me to ship 1250 units per month and then pay $3.50 / item above 1250. I told them that when I signed up in 2006, that wasn't the deal I signed up for. There was no membership. I didn't know of their new plan. Whatever happened to the $1 Lick and Stick agreement I signed up for? When did that change? While it seems that they now have a new revenue model, it's news to me. I haven't shipped any of the toys since the end of 2006 while they continued to bill me monthly. For me it was OK. At least I knew the toys were safe. Not once was I informed of their change in plans and I was never asked to nor ever agreed to their new subscription/membership plan. I asked them to show me when I agreed to this new plan. They didn't respond. They only responded with their new subscription plan as if their history with customers from their early days did not exist.



All I want to do was close my account and get my toys back.

It's now been a few months since trying to discuss this with them and come to an agreement. I'm still waiting for a response to my email about the change in plan and to show me when I agreed to this. In my last email I asked them again how we should sort this out. They replied that my account is in arrears and that before we move forward I'd need to add funds to my account. In November I made it clear I wanted to cancel my account.

Now they're threatening to dispose of my merchandise unless I pay them for the months I've been trying to get them to answer questions and I can't send a shipping company to retrieve my merchandise nor can I cancel my account unless I pay them almost $3000.00.

This report was posted on Ripoff Report on 03/02/2010 07:51 PM and is a permanent record located here: https://www.ripoffreport.com/reports/shipwire/internet-california-94306/shipwire-sign-up-for-a-free-plan-they-later-bill-you-what-they-want-bait-and-switch-20-577061. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
1Author
0Consumer
0Employee/Owner

#1 Author of original report

Rebuttal to My Orignal Report

AUTHOR: timronan - (United States of America)

POSTED: Monday, May 17, 2010
All matters with Shipwire have been resolved to everybodys satisfaction.
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