Profit Partners, Part II
Three vendor programs that build your bottom line.
By Cinda Baxter -- Gifts and Dec, 11/1/2008 12:00:00 AM
Being a retailer is hard these days — much harder than even six months ago. By partnering with companies that recognize that their greatest asset is their reseller base, odds improve that you'll make it through these and other financially tough times.
Continuing our look at dealer programs (see part 1, G&DA September), this month we look at three more programs designed to support the retailer and backed by companies who believe their success is directly tied to your success.
Envelopments
What it is: Pages on the Envelopments website co-branded with your logo and business information.
How it works: A customer visits your website, sees that you offer Envelopments, then clicks on a vendor-provided graphic that whisks them to the Envelopments website, complete with your logo, store description and a mini-portfolio of your work. Customers already on the Envelopments site can select from the Dealer Listings and go to the co-branded pages.
What you provide: Your logo, description of your business, and photos of items you've created using Envelopments.
Impact: Short term, allows potential customers to view the line beyond what you offer on your own website and provides them with your phone number and web link. Long term, as the vendor updates offerings, images will update on the co-branded home page.
Good choice if: You want to supplement your website with the link; especially helpful for those who aren't good about updating images.
Bad choice if: You intend to use this in lieu of your website. These pages don't pop up in Google searches.
Ka-ching Factor: Free to Envelopments account holders who have signed the Licensing Agreement.
Why they offer this: “We were constantly receiving requests from [resellers] to provide Envelopments content for their websites,” explains Patrick Chen, brand manager. “[They] were overwhelmed trying to keep their website current.”
Nuts and bolts: Think of this as a replacement for the normal Envelopments home page seen by linking there from your site — only with your logo, portfolio, etc. — or as bonus pages for customers selecting you from the Dealer Listings.
My two cents: There's no downside, as long as you also maintain your own good looking website. To make the most of the service, update your portfolio shots at least seasonally. This doesn't reduce competition between stores and home studios.
For more info: Envelopments (800) 335-3536.
Oddity Candles Web Store
What it is: Web store hosted by Oddity, co-branded with your business. Has full product line, images, order processing, shipping, etc.
How it works: A customer visiting your website wants to buy some Oddity candles, but sees that you don't sell online. You provide a link that takes them to your online Oddity store for purchases.
What you provide: A functional website (regardless of whether or not you offer e-commerce).
Impact: Short term, a secondary revenue stream from online sales supplementing in-store sales. Long term, over time customers come back to your site and Web store.
Vendor goal: To build sales for both the line and the store without competing against their retailers.
Good choice if: You have a current website — e-tailing or not — and want to offer the full Oddity line.
Bad choice if: You prefer to forgo additional income.
Ka-ching Factor: Retailer receives only 35 percent of retail purchase price, minus shipping costs. The other 15 percent goes to Oddity for everything, from stocking to processing payments to drop-shipping orders. All you have to do is cash in.
Why they offer this: Rather than compete with their retailers or risk customers not finding what they need at their local retailer, Oddity's Scott Williams decided to bridge the gap. “I believe that we should take care of those who take care of us,” he noted.
Nuts and bolts: This is not an affiliate program in disguise. The e-store is co-branded with your business and accessible only through your website.
My two cents: Even though you aren't making a full in-store margin on purchases, it's additional revenue with no out-of-pocket expense and no risk that the vendor will steal your customer. Encourage in-store sales by suggesting website customers call you to see if their selections are available for local pick up.
For more info: Oddity Inc., (800) 637-6484.
Shopatron
What it is: A third party solution that allows stores to fill orders placed on vendor websites.
How it works: The customer visits a vendor website, then places an online order, either for shipment or for in-store pickup. Participating vendors forward the orders to Shopatron, which lists requests on a password protected site for local retailers to fill.
What you need to provide: Product that fills the order requests, and an Internet-connected computer.
Impact: Short term, you pick up sales that would otherwise be made by other stores. Long term, as you become more adept at the Shopatron process, you can comb order requests for as many vendors as you have product to fill.
Vendor goal: To “push” orders back to the retailer instead of selling direct.
Good choice if: You're willing to check the Shopatron site often and have the inventory to fill orders.
Bad choice if: You don't carry the lines that participate in Shopatron, although it might make you consider picking up a few new lines which do.
Ka-ching Factor: Retailer receives normal margin, plus sales tax charged, plus shipping expense when applicable, minus three small fees (credit card, transaction and order processing). A retailer must forward sales tax to the state. Payments come direct from Shopatron, twice monthly.
Why vendors offer this: It reduces a vendor's staff time researching stores in a consumer's area that might have the product, according to Trip van Roden, president of Wellspring. In van Roden's words: “Shopatron works.”
Nuts and bolts: Retailers sign up for a free account through Shopatron. Once “Shopatron enabled,” they can view consumer requests. Orders with “in store pickup” requests are red-flagged to make it easier for local retailers to identify time sensitive opportunities.
My two cents: In addition to moving product, retailers are able to view reports detailing top sellers by vendor — regionally and nationally — taking the guesswork out of what to order next. With nearly one-third of online buyers preferring in-store pickup, this is a win-win for moving inventory and getting new customers to your store.
For more info: Shopatron.com (click on Solutions in the top toolbar, then select Retailer Solutions).
Forging ahead
I give my consulting clients three-part rule to live by: trust your gut; analyze opportunities based on what they'll mean to you a year from now and be sure special offers fit your store, don't force your store to fit the offers. Measured by that rule, each of these programs offers potential growth for participating retailers. In today's economy, potential growth is the path to survival.
We would love your feedback!
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