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  • #982524
    rnbguy
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    • Total posts: 2
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    Hi All,

    Firstly I really like this forum, lots of useful information which my wife and I use for our online store.

    We are currently in the middle of signing up an agreement with a supplier for our online store, this supplier is larger and it would be very exciting if we can build a relationship with them.

    A bit of background about our online store is it’s new, we currently own a separate business in the same industry which is a partnership business for physical shops. My wife and I have decided to open an online store which the business partners (for our first business) are not interested in getting involved with, which works well for all of us.

    The only issue now is this particular supplier requires a shop front to allow us to sell their products online, mostly because they prefer to do this for their reputation. Issue is the online store is run from our apartment and we really don’t want to confuse things by linking the online store to our other partnership business.

    I was wondering if anyone had similar experiences or had any ideas in helping us negotiating that term with the supplier?

    #1137261
    Anonymous
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    • Total posts: 11,464
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    Hi there rnbguy,

    This is an issue that affects many online retailers, so I’m sure there are some folk around here who have had experience that may be relevant to you. Fingers crossed they jump online with some insights for your shortly.

    In the meantime, thanks for your kind feedback about the forum. We’re thrilled you decided to make the leap from being a reader to being an active contributor.

    All the best for the next stages of your business.
    Jayne

    #1137263
    Melanie Miller Biz Coach
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    • Total posts: 90
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    Hi mbguy,

    It is a frustrating situation but one that wholesalers impose for many reasons. My experience is you either a) need to find out if they have a local sales agent or representative that you can meet with or b) move on. Do you have a sales rep that you deal with via your bricks and mortar store?

    As far as the ACCC goes, it is a wholesalers right to choose who they supply and where their products are available. If you are dealing with a foreign wholesaler then you have no chance with the ACCC. I know this from personal experience on both the side of the wholesaler and the retailer.

    Running wholesale businesses for many years, I often put a hold on online stores for a variety of reasons. The only time I would budge on this would be if the sales agent or rep had good reason to want the store on board. If I was approached by an online store where the site was not yet completed it was an instant “no” regardless of the rep or agents opinion.

    I would advise against any type of threat of going to the ACCC, my experience in the wholesale gift and homewares industry was that most wholesaler were well aware of the rules and that will not help you build a relationship.

    Hope you can find an alternative supplier or the current one gives you a chance! Good Luck in your new venture!

    Melanie
    Agent 99 Business Coaching
    http://www.agent99hq.com.au

    #1137264
    Blueedge
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    • Total posts: 47
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    I did reply to this earlier but deleted my post as it has been pointed out in the above post that I had my facts slightly incorrect. It should have been “imposing minimum resale pricing” not refusal to deal. Sorry for any confusion. I’ll check my facts before replying to any posts in future.

    #1137265
    Melanie Miller Biz Coach
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    • Total posts: 90
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    Blueedge, post: 156716 wrote:
    I did reply to this earlier but deleted my post as it has been pointed out in the above post that I had my facts slightly incorrect. It should have been “imposing minimum resale pricing” not refusal to deal. Sorry for any confusion. I’ll check my facts before replying to any posts in future.

    The ACCC regulations are quite confusing! Easy to get lost in them!

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