Getting Your Product into Retailers

[allthatjazz]

Hey everyone,

I am currently trying to get my product into retailers. I have had one retailer contact me wanting to carry the product. After talking with them, I have now contacted two other retailers about carrying my product.

Shipping directly from my manufacturer to the retailer sounds like the sensible thing to do, but I have some questions and concerns about doing it this way. Maybe I am completely off, and this is not the correct way of doing this. If so, please let me know how I should go about sending an order to retailers.

1. If I ship directly to the retailer, they will have the information of my manufacturer, can they then order straight from the manufacturer, and cut me out? How could I prevent something like this from happening?

2. If I ship directly to the retailer, does the retailer pay for the shipping, and customs costs? Or do I factor this into my costs? Shipping charges change constantly, so there is no way of me knowing the exact shipping cost, or even customs costs, especially with an overseas retailer.

3. Is there some type of contract, or agreement, I should write up between the retailer and I?

4. Should I apply a MAP price to my product?

Thank you all for the help! If there is anything else I should look out for, or do please let me know!

 

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[McCoyH]

Hey everyone,

I am currently trying to get my product into retailers. I have had one retailer contact me wanting to carry the product. After talking with them, I have now contacted two other retailers about carrying my product.

Shipping directly from my manufacturer to the retailer sounds like the sensible thing to do, but I have some questions and concerns about doing it this way. Maybe I am completely off, and this is not the correct way of doing this. If so, please let me know how I should go about sending an order to retailers.

1. If I ship directly to the retailer, they will have the information of my manufacturer, can they then order straight from the manufacturer, and cut me out? How could I prevent something like this from happening?

I'd always be the middle man. You may have to pay shipping twice, but then you can order in larger quantities to get a discount on your cost, then just distribute as necessary.

2. If I ship directly to the retailer, does the retailer pay for the shipping, and customs costs? Or do I factor this into my costs? Shipping charges change constantly, so there is no way of me knowing the exact shipping cost, or even customs costs, especially with an overseas retailer.

3. Is there some type of contract, or agreement, I should write up between the retailer and I?

You could always try to get them to sign a non compete I suppose.

4. Should I apply a MAP price to my product?

Always. Is this something you created and had manufactured?
If you're importing from Asia, I wouldn't even consider shipping directly to the retailer. It could take weeks, if it even passes customs.

Another benefit to having the inventory in your hand is that you can always open an additional line as a wholesale or distribution center and drop ship for ecommerce customers.

I sell to consumers, retailer and also wholesale and affiliate programs for other small retailers or people wishing to dropship.
Thank you all for the help! If there is anything else I should look out for, or do please let me know!

Added responses to the quote

 

[Phones]

You can also get a freight forwarder there, they will get the shipment from your manufacturer, split them as you request and send it.

They charge 3-8% fee, and they have discounts on Express shipping (almost 80% for some).

 

[allthatjazz]

Added responses to the quote

Thank you McCoy. This is something I created, and manufactured, and yes, it is shipping from Asia. Your point about it taking weeks to pass customs is something that has crossed my mind.

I definitely feel more comfortable being the middleman. Being the middleman, do I add in shipping to the retailer into my cost, or does the retailer pay for the shipping?

Thank you for the idea of drop shipping, that never crossed my mind.

 

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[allthatjazz]

You can also get a freight forwarder there, they will get the shipment from your manufacturer, split them as you request and send it.

They charge 3-8% fee, and they have discounts on Express shipping (almost 80% for some).

I'll be looking into this!

 

[Z5 FILMS]

Buyer gets product from you and they pay the shipping. Way too much triangulation and middle men going on any other way and you are just asking for a stack of problems that you will have no control of if you go that route. How do you know what you order is even what came on the boat? I'd hate to be you and get a phone call from the buyer (who's paid you already and is now super pissed) that they ordered a container of garden hoses, but what arrived was 40 CBMs of sex toys...

Unless you are personally going down the the Long Beach freight lot with a box cutter in your hand and inspecting your cargo, NO WAY I would send it on to the buyer. Keep it simple. You buy from China, Buyer buys from you. If the freight forwarder delivers two container loads of the wrong items, who's going to pay for all these mistakes. EVERYONE is going to throw their hands up in the air and say "not me!".


KISS = Keep It Simple Stupid

 

[McCoyH]

Thank you McCoy. This is something I created, and manufactured, and yes, it is shipping from Asia. Your point about it taking weeks to pass customs is something that has crossed my mind.

I definitely feel more comfortable being the middleman. Being the middleman, do I add in shipping to the retailer into my cost, or does the retailer pay for the shipping?

Thank you for the idea of drop shipping, that never crossed my mind.

I personally would include shipping in the overall price plus a $3 dropship fee... If you get the product for $10 and it costs $5 to ship and retails for $30 dropship it for $23 and wholesale for $20... just as an example. different products and markets will be different...

 

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[emonex3]

Hi I am a manufacturer of garments from Bangladesh. I can provide you high quality garments at cheap rate. I can ship your products where ever you desire. We can build up a business together if you like. I am willing to setup a business with you. I am looking for someone who can be the middleman to the retailers so I think we are perfect for doing business. please visit my website XXXXXXXXXXXXXX or you can email me at XXXXXXXXXXXX I would love to do business with you.

Edited by Runum.

 

[allthatjazz]

Buyer gets product from you and they pay the shipping. Way too much triangulation and middle men going on any other way and you are just asking for a stack of problems that you will have no control of if you go that route. How do you know what you order is even what came on the boat? I'd hate to be you and get a phone call from the buyer (who's paid you already and is now super pissed) that they ordered a container of garden hoses, but what arrived was 40 CBMs of sex toys...
Unless you are personally going down the the Long Beach freight lot with a box cutter in your hand and inspecting your cargo, NO WAY I would send it on to the buyer. Keep it simple. You buy from China, Buyer buys from you. If the freight forwarder delivers two container loads of the wrong items, who's going to pay for all these mistakes. EVERYONE is going to throw their hands up in the air and say "not me!".
KISS = Keep It Simple Stupid

Very good points! Keeping things simple always seems to help.

I personally would include shipping in the overall price plus a $3 dropship fee... If you get the product for $10 and it costs $5 to ship and retails for $30 dropship it for $23 and wholesale for $20... just as an example. different products and markets will be different...

This is super helpful! Thank you for this. I am having a difficult time deciding what my wholesale price will be, due to the fact that one of my potential retailers is overseas. Shipping will be pricey, and that will cut into profit margins.

 

[McCoyH]

If it cuts into your margins so much that you have to second guess it, you're probably selling a product that is a) too cheap b) too low of margin to begin with

 

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