Wholesale Policies and Linesheets - Etsy Blog

Wholesale Policies and Linesheets

Once you've developed a cohesive product line with high-quality packaging and products, and pricing and processes built to scale, odds are you're eager to jump in to selling wholesale. You may even be generating interest from boutique owners who have seen your items online or in person. The final step before you start working with retailers is to make sure you speak their language and can communicate clearly, starting first and foremost with your linesheet and policies.

STREAMLINE YOUR LINESHEETS A linesheet or catalog is a professional, functional, printed or digital document that summarizes your product line. While there's no universal template -- some designers use a simple spreadsheet while others create entire catalogs with elaborately styled photos -- the essential ingredients remain the same: 1. A crisp, thumbnail-sized image of the item Shooting on a white background is most common, though many Etsy sellers also include styled or merchandised photos in their linesheets or catalogues. When props are used, they often highlight the product's appeal. If you're worried adding props will distract rather than enhance, keep it simple. Above all, make sure your images are clear and shot with consistent lighting.

Red Raven Studios ceramics pop on a simple background.

2. A SKU and in-depth item details Each item listed on your linesheet should have a SKU or other identification system. In addition, make sure to explicitly state the following:

? Prices. Include the wholesale price per item and consider adding a Manufacturer's Suggested Retail Price (MSRP), sometimes called a Recommended Retail Price (RRP). Review our Pricing for Wholesale lesson if you're stumped.

? Sizes and colors. Specify whether an item comes in different sizes and colors. ? Materials. Many wholesale buyers care about how your items are made and where the raw

materials are sourced. Be up front about your materials and process. 3. Artist information and ordering process Make sure your contact information is visible on every page. A short bio or artist statement is also a great addition at the beginning or end of your linesheet. You'll also want to make ordering as easy as possible. You can add blank spaces to your linesheet for retailers to specify their desired quantity and order directly from there, or you can include a separate order

form that clearly references your linesheet or catalog. Some buyers may even want to use their own order form, utilizing your SKU system.

PERFECT YOUR POLICIES

You'll need to have airtight policies that you communicate to retailers before you confirm an order. Just like the policies in your Etsy shop, these guidelines will help ensure you can process their request and avoid unnecessary back and forth. You can include your policies and ordering info at the end of your linesheet or in accompanying documents. Check off each topic below as you create and complete your own policies.

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 designer 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 work. The goal is to create a relationship with steady repeat orders that will provide larger cash flow and expose your work 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

Payment Methods

State how you prefer to get paid. What forms of payment do you accept? Do you require a credit card number or a PayPal address? Do you accept checks?

Payment Terms

If a retailer decides to place an order, you'll need to agree on a payment plan. Retailers often have preferred payment terms but this is a negotiable topic. Payment upfront or deposit upfront is rare. If the order is the first from a retailer, a seller can request a cash on delivery (COD) payment, where the seller charges the retailer upon receipt of goods. A retailer may also request to pay a seller 30, 60 or 90 days after the goods have shipped -- referred to as Net 30, Net 60 or Net 90, respectively. Note that most commonly, independent retailers will expect to pay you when you ship the order.

Estimated Production or Lead Time

Having a predetermined lead time for 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 a purchase order, it will specify the date the retailer needs your items.

Assuming you don't have the stock on hand, establishing a reasonable lead time will help you determine if you can produce the quantity requested within that window.

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.

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.

Drop Shipping

You may want to specify whether you offer drop shipping to the retailer's shoppers. If so, you should negotiate a better rate than the typical wholesale pricing structure, since you will be handling all the shipping and packaging on a per-package basis. You can learn more about drop shipping in our Wholesale Glossary.

Shipping Cost

Usually, the retailer is responsible for paying for shipping. Many sellers state on 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 send samples upon request? If so, are they finished items, or just material swatches? Do you pay for shipping the samples, or does the buyer? Will you need them returned?

You might consider charging 50% of the wholesale price for a sample, and should be selective about which potential wholesale buyers you send samples to -- offering samples to anyone and everyone who asks might not be financially sound for your business.

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 wholesale buyer could cancel their order. You might also consider charging a cancellation fee (usually a percentage of the total 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 retailers negotiate for the seller to accept back any unsold inventory and refund the retailer, while other sellers, like Amy Adams of Brooklyn-based Perch Ceramics, do not. "I don't give buyers the option of returns or buyback credit, since the understanding with wholesale should always be that there's equal risk." No matter what you decide for you business, be sure to clarify your buyback policy upfront.

Finally, you may also want to include your expectations on when and how much a retailer can discount your item below your own MSRP.

UNDERSTAND THE PROCESS

If a retailer is wowed by your linesheet, your order minimum works for them and your products fit well into their store, they will place an order. Some retailers will use their own purchase order (PO) form, and others will want to make orders through your linesheet or order form. They may also contact you directly on the phone or through email. However the order is made, a PO should be created to ensure clarity.

Once each order is finalized, you'll use their PO to generate an invoice. An invoice totals the amount of goods, what they are, the cost, additional charges to the retailer (such as shipping), contact info for both parties, and typically, has a date and unique identifying number or code for record keeping.

Having clear policies and a streamlined linesheet will help the ordering process move along smoothly and ensure that you and your retailer are building a strong, long-lasting relationship.

EXAMPLES

Take a look at the next few pages to see the many different styles of linesheets, catalogues and order forms other Etsy sellers have utilized as you get inspired to create or update your own. These Etsy sellers gave us permission to share their examples with you and we've removed all prices from their examples to maintain privacy.

A page from the Blackbird Letterpress catalog and corresponding order form, featuring clear product SKUs for each item. You can view the full catalog here.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download