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Wednesday, February 5, 2020

What You Need To Do Before Meeting Your Suppliers

Every ecommerce business needs to have a long list of suppliers. Companies that will provide you their products, to sell on your website can also be deemed as vendors. However, there are different levels of the supplier. You have the basic kind that will sell you batches of products to sell, and in return, they want a percentage of the gross. Then you have suppliers that provide materials, which you need if you’re producing your own products. The final category is suppliers that offer you services such as logistical transportation and software such as management tools. Before you meet any of your potential suppliers, you’ll need to set the meeting up properly so everything can go smoothly.

Get your ducks in line
Being informed about the vendor you plan on talking with is critical. Your relationship will not get off to a good start if you’re not aware of what kind of things they sell and can provide you. The vendor will also be asking themselves, ‘is this business right for me?’. Their reputation is at stake, each time they offer to work with you. Hence why, you need to do your research, find out what kind of things they sell, do they specialize in anything and what is their performance record? They are perfectly fine to supply you with a certain material, but they may not be able to supply it in the amount and time frame you demand. Don’t put your vendor over a barrel as even a good deal will be declined if it's simply impossible to fulfill.

Facts and figures
Although it's commonly accepted that the vendor has to try and impress you as they want more businesses to spread their products, you are in the same boat. You have to convince the vendor to work with you also. Therefore, bringing the appropriate facts and figures to the negotiation is so important for assuaging any doubts. How many visitors to you get to your ecommerce website? How effective is your conversion rate? Have you invested in a full marketing campaign whereby you have engaged in PPC and video advertising, as well as social media banner ads? Bring the figures for homepage and landing page visits as the supplier will want to know you have a large consumer base just waiting to act.

Mutually beneficial
The end-all and be-all is the black and white print on your contract. Any and all fears will be put aside if you can present a contract that is mutually beneficial and clearly states each party’s obligations. Using this contract generator you can quickly formulate a contract with all the relevant legal details that will protect the vendor as well as yourself. Take a look at their many templates which you can take inspiration from and feel free to select your terms from pre-written text bodies.

Before you meet face to face with any supplier, know who you’re speaking with and what they are capable of. Show an understanding of what it is they do and impress them with a small presentation of what it is you do.
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