Setting up your Wholesale Market Policies

Where to begin with Wholesale Policies:

For navigation to set up your market policies see “How to set up market 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 a 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.

Shipping Cost

Usually, the reseller is responsible for paying for shipping. Many sellers state in their policies that they can provide shipping estimates once they know the quantity and contents of an order, as well as the ship-to location.

Product Customization and Samples

Some sellers are willing to customize their products for wholesale orders and others are not, so be clear on what you're willing to offer. The same clarity should apply to samples. Do you sell samples? If so, are they finished items, or just material swatches? Develop a pricing structure for your samples.

Returns, Cancellations and Discounts

Many sellers will only accept returns on defective or damaged items for a certain period, such as within 15 days of receipt of goods. You'll want to clearly state your return policy as well as if there are any circumstances under which a reseller could cancel their order. You might also consider charging a cancellation fee (usually a percentage of the total order) if you are willing to cancel an order. Buyers often expect that they'll have the option to cancel an order if you're late delivering it, so be sure to include a time-limit if you are going to allow cancellations.

Some resellers want to negotiate for the wholesale seller to accept back any unsold inventory and refund the reseller, while other sellers may not offer this option. No matter what you decide for your business, be sure to clarify your buyback policy upfront. Finally, you may also want to include your expectations on when and how much a reseller can discount your item below your own MSRP (Manufacturer's Suggested Retail Price).

Create a Smooth Process

Having clear policies will help prevent confusion and ensure that you and your reseller build a relationship based on good communication skills. By addressing these key topics in your wholesale policies, you can set the foundation for a successful partnership with resellers and ultimately expand your business reach.