Creating Wholesale Market Policies
Creating Wholesale Market Policies
Can you be a Wholesale Seller and a Retail Seller on Finnalby? Yes! You can actually be all Four Types of Accounts! You can wholesale your goods, you can buy other goods via wholesale, you can retail your goods to the consumer and you can buy goods via retailers as a consumer. Please see our Terms of Service and the respective policies for requirements for each part of the World of Finnalby.
Here are some things to prepare for.
Definitions:
“Wholesale Seller” means a seller who proposes and/or sells goods to Resellers through Finnalby Services.
“Reseller” means a vendor who procures products through the Wholesale Sellers on the Finnalby Services for the purpose of reselling them.
"Retail Seller" refers to a vendor who proposes and/or sells goods to End Users or Consumers through Finnalby Services.
"Buyer" denotes an individual who procures products via Finnalby Services for Consumption purposes.
Where to begin with Wholesale Policies:
Create your policies that you communicate to the reseller before you confirm an order to them. Just like the policies in your Finnalby Retail Market, these guidelines will help ensure you can process their request. You can include your policies and ordering info in your about section on your Wholesale Seller Market. Having two separate accounts will allow you to have a whole new market to sell on other than your current retail market.
Minimums
Selling wholesale requires a specific pricing structure that has a lower profit margin per sale than earned when selling directly to shoppers. A minimum is needed to ensure each wholesale order quantity and value is high enough that it makes sense for your business. For example, a wholesale seller could have an opening order minimum of $150 and a reorder minimum of $100. Minimums ensure that you will earn a specific amount of money at one given time and that the retailer is investing in your products. The goal is to create a relationship with steady repeat orders that will provide larger cash flow and expose your products to a wide audience. It's up to you to determine what number of items ordered at once will make selling at a wholesale price worthwhile. A few common options:
Opening order minimum and reorder minimum
Opening order minimum but no reorder minimum
No minimums
Case Packs
No Case Packs
Case Packs
Case packs are how many products of one type is needed to be purchased to place an order with the wholesale seller. If a wholesale seller has No Minimum Order, they may use this option with a larger case size to ensure a higher dollar sale to place an order. If a wholesale seller has no case packs (items are sold by the each) then they may choose to have an order minimum to ensure the whole order from their market meets a certain size before the reseller can check out.. Some wholesalers have both case sizes and order minimums.
Estimated Delivery Dates and Lead Time
Having a predetermined lead time for your orders is key to ensure you don't commit to an order that you won't have time to fill. It's important to be realistic about your capacity and to set expectations with retailers based on that time frame. If you receive an order on Finnalby, it will specify the date you have estimated for shipping your items. The key is to have the stock on hand, and establish a reasonable lead time for delivery.
You may also want to select a cut-off date, after which it's too late for wholesale buyers to order from you for a specific occasion, such as the holidays or the end of your spring line. Once an order is placed, be communicative and agree upon the final expected delivery date.
Shipping Method
You'll need to specify the exact method(s) by which you ship your goods and whether you are willing to ship through a different carrier if asked to do so. You are able to ship via Finnalby’s shipping platform as you do with the retail side of Finnalby.
When making this decision, consider your policies around lost or damaged packages. It's wise to insure your shipments independently or to use a carrier service with built-in insurance.