Getting your products into major
retail stores is not an easy task. However, with hard
work and perseverance it can be done. To increase the ods of getting your
products into major retail outlets these are some of the key
requirements you must be prepared to meet. Not all
retailers will ask for everything on this list, but some
will. If you are prepared you chances will be greater.
You can
this as a template to track your progress.
Problem Solved:
Retailers want to know what problem
is your product intended to solve and what value does it
bring to their customers. You have to be able to
articulate this in a clear and convincing way in order for
them to be convince that there is a demand for your product
and that it will sell. Retailers don't want to put
something on their shelves that will not sell and generate
revenues for them.
Competitor Products:
Be prepared to stipulate if there
are competitive products that are currently on the
market. Do your homework to find out if the
competitive products are already being carried by the
retailer you're trying to gain access to. Be
prepared to make the case of why your product is better than
the competitive products.
Product Description:
Be prepared to give a description of
your product during the application submission process.
You may have limited space in which to do that, so create
several different description exaples (some short, some
long, etc.) so that you can meet whatever requirement you're
presented with.
Product Sample:
Be prepared to submit a product
sample or a picture of your product during the application
process. Do not submit actual product samples unless
it is requested. Many retailers don't ask for the
actual product sample until they've deciced to take an
interest in your product which is usually at the 2nd or 3rd
phase of the application process.
Location In The Store:
Be ready to advise the retailer on
where you product should be placed in the store.
Determien what products it should be next to and what
section it should be placed in. For example, if your
product is a liquid bath soap then it should be placed next
to other liquid soaps, or soaps and it should be in the bath
section. You will have to visit the store to gather
information and establish the appropriate location in that
specific store.
Packaging:
All retailers have packaging
standards that must be met. Some retailers don't allow
2nd and 3rd layers of packaging on some products while
others don't have a problem with it. Some retailers
want the packaging to be similar in dimensions as ones that
they already have on their shelves so that they could make
efficient use of the space on their shelves. Some
retailers have requirements for the sturdyness of the
packaging. It must be able to endure warehousing and
transportation and be in good condition to be displayed on
shelves. Some packages must be shrink wrap while
others don't have to be. All of these requirements are
specific to each retailer. Check with the retailer to
find what their packaging standards are for your product
type.
GTIN/UPC (Barcode):
GTIN stands for Global Trade Item
Number. This is also known as the Universal product
Code (UPC). This is the information that is embeded
within a
Barcode that uniquely identifies a
product. All products sold in retail stores must carry
a barcode with the GTIN/UPC information embeded. The
barcode allow for the item to be tracked in shipment and
identified at the
Point of Sale (POC). It also
enables the retailer to track which items are being sold and
manage their inventory in realtime to keep their shelves
stocked in order to meet demand and to identify and remove
items that are not being sold. Barcodes have to be
placed on the product in a certain way in order to be
properly scanned by the store scanning equipment.
Learn more about
Barcode.
Dimensions:
Know the dimensions of your product.
You will be required to provide this information at some
point in the application process. To increase your
chances of getting accepted do your research and look at
other products in the same category as yours and see how
they are sized to display on store shelves. Check the
weight of the item. Weight plays a key role. If
the product is too heavy it will cost more to transport and
become difficult to place on store shelves.
Shipping:
Every retailer have their own
standards about how you should ship products to them.
If you are working with an established distributor who are
already working with the retailer then they will already be
familiar with the procedures. If not, then you will
have to become familiar with the retailer's shipping
procedures. Retailers have rules such as making
advance delivery appointments, delivering to specific
locations, special facility access requirements, etc.
Be sure to learn the retailer's shipping requirements if you
will be arranging the deliveries.
Ordering/Invoicing (EDI):
Large retailers have a specific
method of communicating with their vendors to place orders,
do invoicing, etc. Most large retailer subscribe
to a system called the
Electronic Data Interchange (EDI) to
conduct all of their order processing with their
vendors/suppliers and they require that any vendor that does
business with them to subscribe to such a system. If
you're a new vendor you will be required to subscribe to
such a system if your retailer requies it. You can
learn more about what the
EDI system is about.
Trademark:
Retailers want to know that they
will not have any trademark problems with any products sold
in their stores, hence, you may be asked to provide
trademark information on your products. If a trademark
is required to protect anyone else from infringing on your
product you may want to file for one. You don't have
to wait for the trademark to be approved before trying to
get your products into stores. A trademark pending
status is enough to satisfy most retailers. Learn more
about trademark.
Copyright:
Retailers also want to know that
they will not have any copyright problems with any products
sold in their stores, hence, you may be asked to provide
copyright information on your products. If a copyright
is required to protect anyone else from infringing on your
product you may want to file for one. You don't have
to wait for the copyright to be approved before trying to
get your products into stores. A copyright pending
status is enough to satisfy most retailers. Learn more
about copyright.
Patent:
Retailers dont' want to sell
products in their stores that may infring on someone else's
patent and create legal problems for them. They want
to know that they will not have any patent problems with any
products sold in their stores, hence, you may be asked to
provide patent information on your products. If a
patent is required to protect anyone else from infringing on
your product you may want to file for one. You don't
have to wait for the patent to be approved before trying to
get your products into stores. A patent pending status
is enough to satisfy most retailers. Learn more
about patents.
Product Certifications:
Some products have to be certified
by the relevant authority depending on what it is or the
claims that you're making about the product. For
esample, if the product is an electronic device it may
require the
Underwriters Laboratories (UL)
certification or its equivalent. If you were to look
on the back of most electronic devices you will see the UL
stamp. If you were to claim that your cosmetic product
provides certain health or medical benefits it may require
FDA and/or
USDA certifications. Retailers
will ask for this type of information if your product falls
into that category.
Total Sales:
Be prepared to provide sales
information your product. Most retailers will want to
know about the last 12 months of sales. They want to
learn how well the product is doing. Have the
information to present if asked.
Other Places Where Sold:
Be prepared to provide information
on where your products are currently being sold. Your
retailer want to know if competitors are selling the
product. They may or may not want to carry your
product as a result. If the product is selling they
will certainly want to compete by selling your product.
Even if they product is not being sole elsewhere they may
want to be the first to sell it and gain an advantage on
their competitors.
Suppliers/Manufacturers:
Who are your
suppliers/manufacturers? Major retail outlets are
concerned about their image and who they do business with,
hence the reason they want to know about your
suppliers/manufacturers. They are particularly
concerned if your suppliers/manufacturers are located
overseas. Major retailers are under pressure not to do
business with other businesses that don't treat their
employees well. Many suppliers/manufacturers utilize
child labor and harsh working conditions that could cause a
backlash to retailers when discovered. They may
also have bad experiences with other businesses in the past
that they don't want to work with again.
Record Audits:
Maintaining a good supply chain is
essential to major retailers and hence from time to time
they may require an audit of their vendors in order to
discover and resolve any financial issues that may cause a
supply chain problem for them. As part of the
agreement to do business with them major retailers will ask
you to agree to this stiuplation. They will only audit
your records with respect to their ordering process with you
on the specific products that they are buying from you and
not the rest of your organization.
Financials/Dun & Broadstreet Listings:
Major retailers want to gain some
insights into the financial health of your company.
The main means by which they do so is by asking your to
provide a copy of your Dun & Broadstreet (D&B) financial
listings. In order to get a D&B listing you have to
sign up with D&B to establish a businsiness credit file.
This can cost from $229 - $399 per year. Visit the
D&B website to learn how.
Insurance:
Insurance is a key component to any
business and it should be no surprise that retailers would
ask for proof of insurance. Retailers have
requirements for insurance that may include indemnification,
general liability, product liability, auto liability, etc.
They may also have specific minimum anount of coverage
requirements. Be prepared to comply with their
insurance requirements. Learn more about
business insurance.
Tax ID:
Have your business
tax ID ready. If you don't have
one you should get one.
Minority Certifications:
If you have
minority certifications such as MBE, WBE, DBE,
Veteran, etc. many retailers have Minority
Supplier Diversity programs that they would like to bring
you in under. You may get more favorable treatment
during the application process if you have minority
certifications.
Payment Terms:
Payment terms is the conditions
under which the retailer will pay you after completing
sales transactions of your products. Retailers will
use a payment term of Net 10, Net
15, Net 30 or Net 60.
This means that 10, 15, 30 or 60 days after they've
completed sales transactions of your product you will
receive full payment. Net means "total after all
discounts and fees".
Facility Certifications:
The facilities at which you conduct
your manufacturing or product packaging may have to be
certified in order to satisfy some major retailers.
For example, if you're claiming that your products are
Kocher you may have to get the appropriate certification for
your facility before some major retailers will accept your
products in their stores. Find out from your retailer
if you need to provide this kind of proof.
Background Investigation:
As part of the application process
the retailer may ask that you and certain members of your
organization submit to a background check in order to
satisfy themselves that they are not doing business with
people who have a criminal background. It is a way for
major retailers with a reputation to manage to protect
themselves. So, be prepared to see this request from
some (not all) retailers.
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