Pros:
The seller does not need to store the goods, and the money from the deposit is written off for the already paid products.
If there are no funds in the current account, you can brazil mobile number list use a deposit to pay for the goods.
Costs for warehouse maintenance and purchasing are saved.
The supplier is responsible for the quality and safety of the goods.
The downside is the same as dropshipping: the seller has no control over the quality but is responsible for delivery.
When working with a deposit, it is possible for the supplier to send the goods not to the buyer, but to the store. This gives the opportunity for control, but the delivery time increases.
5 rules for working with online store suppliers
Several suppliers for one online store
Working with one supplier is extremely unprofitable, since when depending on a counterparty there are risks of disruption of deliveries, which negatively affects the activities of the online store. It is recommended to select at least 3-4 partners, and then you can:
analyze the possibilities of working with each supplier;
evaluate the results of interaction with all counterparties;
to study the range, its stability and frequency of expansion;
gain trust after several completed transactions and receive favorable terms for deliveries, such as payment by installments.
The majority of suppliers for online stores are interested in cooperation with reliable partners and offer them bonuses, discounts, product samples, etc. But there are also problematic counterparties, which are characterized by the following features:
postponing delivery dates, first by a day or two, then by a week, and so on;
they constantly raise prices without justification;
do not comply with contractual obligations.
If the company does not meet your requirements, do not hesitate to look for alternatives: the market of suppliers for online stores is so vast that it is not difficult to find new business partners both locally and internationally.
5 rules for working with online store suppliers
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Concluding an agreement is a mandatory condition for cooperation
In order for the owner of an online store to protect himself from delays in deliveries and other troubles, it is necessary to conclude an agreement with the supplier, which specifies all the conditions, obligations and penalties for their violation. The points of the document define:
delivery times for the goods after placing an order, indicating the maximum period, for example, 4 days;
mandatory notification of any changes in price or product range within a period of, for example, 10 days, during which the old conditions remain in effect;
the procedure for returning or replacing defective products: determining the deadlines, payment for delivery, the time for refunding funds for defective goods;
the minimum order amount or its volume in pieces or packages;
the admissibility of increasing the volume of product deliveries during the season of greatest demand;
delivery options: through a supplier, independently or with the help of a transport company.
It is important to take into account the smallest details when concluding transactions. For example, it is necessary to determine who will be engaged in packaging and labeling of goods, whether it is possible to get a deferment or installment plan for payment, what methods of payment will be used (cashless or cash).
Another important aspect is penalties for breach of the terms of the deal, which can be imposed on both the supplier for delayed shipment and the buyer for late payment. It is necessary to clearly define the conditions under which sanctions are not applied, for example, failure to deliver due to adverse weather conditions, which no one can influence.
When purchasing goods in wholesale online stores, a public offer is in effect, which is the basis for concluding a transaction. It is important to carefully read its terms before accepting it, since after signing, changing the terms in the order becomes impossible.
5 rules for working with online store suppliers
Source: shutterstock.com
Professional training of staff
The level of personnel training is especially important when working with technically complex and specific goods, such as cosmetics, building materials or home electronics. In such areas, the range of products can be extensive and customers need advice. Therefore, professional training is necessary for managers and online consultants.
Manufacturers of such products, brand owners and distributors recognize the importance of training their staff and often provide educational services to improve their skills in the areas of:
psychology of communication with clients;
knowledge of the most important characteristics of goods, their specifics and capabilities;
presentation of the product range;
understanding the brand’s priorities and philosophy, its strengths in comparison with competitors;
sales management, using various methods such as increasing the average check, working with objections, and using scripts.
For top-level managers and online store owners, suppliers additionally conduct trainings, including short free (or paid) online courses. In the case of large projects, the supplier organizes events to launch the project into operation using its specialists. Such interaction programs and the conditions for their implementation are agreed upon in advance.
5 rules for working with online store suppliers
Source: shutterstock.com
Verification of documentation permitting the sale of products
The receipt of goods can be organized through independent wholesale purchases from various manufacturers, or the brand representatives themselves will be suppliers of products for the online store. In any case, all goods on trading platforms must have confirmation of their quality, for which sellers must have:
certificates and declarations of conformity;
refusal letters.
Certificates and declarations of conformity are required for toys, food products, footwear and children's clothing, some cosmetics, furniture, and many other goods. And for accessories, interior and decorative goods, souvenirs, fasteners, fittings, and other goods that do not affect the well-being of buyers, refusal letters are required.
5 rules for working with online store suppliers
Source: shutterstock.com
The registration procedure, given the wide range of products, is quite long and expensive, so the best option is for the supplier to have the necessary documents.
At the beginning of work, it is possible to work without them for some time, but in the event of a complaint, documents must be presented, otherwise sanctions are applied, for example, the trading platform blocks the cards and the seller's personal account until the conflict is resolved.
Mandatory submission of product samples
Many wholesale suppliers for online stores offer the following options to familiarize themselves with the quality of the products they supply before concluding a contract:
To get acquainted with the products and try them out, to get comprehensive information by visiting the showroom or warehouse. This option is inconvenient if the supplier is located in another region, which requires time and financial resources, especially in case of unsatisfactory results.
Organize the delivery of samples by mail. After receiving the parcel, you can familiarize yourself with the presented samples and decide on the purchase.
The option with samples is more convenient, especially in case of purchase:
decorative and care cosmetics;
food products and drinks for people and animals;
perfumery products;
clothes for babies;
textile products for the home.
When working with samples, the entrepreneur has a chance to check the reliability of the supplier: delivery speed, volumes of deliveries, choice of carriers and payment for transportation. After the start of cooperation, sending samples often remains at the disposal of the company for use when getting acquainted with new products and transferring to retail customers as additional incentives.