Dropshipper refuse to accept responsability and threaten with court [????]

[MrPorter]

Hello, Forum

I really need to hear an opinion from experienced people how to solve this issue.

Long story short: I am located in an EU country and sell on AZ. I was using a drop shipping service from UK company X to fulfil my orders for a half a year or so.

It started with that company X have not delivered tracking numbers for the last orders before Christmas. Also ignored me during the last day and period between Christmas and New Year (they were working during these days). After the Christmas period I found out that number of orders were not shipped even though I was informed that they were shipped. At the same time number of customers number of customer starting sending me email that they order has not arrived, or the item has a defect. The company X refused to provide information of unfulfilled orders, and refused to fulfil pending orders until I will pay the invoice.
I decided to fulfil failed orders locally to make sure everything will be done properly. And informed them about this and specified that I cannot pay at the moment because I am gathering info of failed orders. Later I presented the list to of failed orders (attached images of defects) and started the negotiation process.

They declined my offer and despite of defects and unfulfilled orders company X requested to pay the full price.

Then I sent a question which they have not answered.

After couple of days they sent me a warning that I have not payed their invoice and that they add a penalty fee of 50gbp and if I will ignore this e-mail, within 24 hours they will send me a court letter. After couple of days another representative of company X sent a similar letter.

[this is where I am at the moment]

Note:
1. I have informed them that I will be away, and they have sent me the information about the court anyway.
2. We have not agreed on any payment deadlines, it was not specified in the invoices too.
3. We have not signed any contract and(or) a contract. I just sent them a short list of conditions: (they agreed and we proceeded working).
a. In case of defect they have to take the responsability
b. If an item is not delivered both parties split the loss 50/50 (items dispatched without a tracking number)
4. 98% of communication was done over an email.
5. We had a similar issue in the past but I presented a list of failed orders and we split the loss and continued working.
6. And more things like lying, ignoring and failure to comply with their promises.

The price which I should pay according the invoices is ~3 000 eur.

I am currently writing another e-mail where I will add up all the numbers again, I will name what they did wrong and add proofs of communication.


Main goal is to find an agreement but I have a bad feeling that they will continue demanding a full price.

[Bunneh]

Is this company X a genuine company or is it just an individual you have a contact with?

were all your fees with company X paid for, when you had those orders just before xmas? or had you owed them money before then?

[oompaloompa]

is the invoice for fees for using services, for postage or for actual goods?

if it is dropshipping you pay first and then they ship, right? so what about the orders you paid them for and did not fulfill, you said you fulfilled them yourself locally.....you can claim or counterclaim on them too...so what are they saying about that?

how did you pay? because you can chargeback if they cannot prove tracking numbers. Are these individual payments or one big payment that they deduct from, like an account top-up?

does the amount they owe you, outweigh the amount you owe them?