We build network sales channels of the gadget DO-RA
At the beginning of March 2019, the Intersoft Eurasia team completed work on a test batch of DO-RA gadgets - personal, cross-platform dosimeters-radiometers for monitoring the radiation situation at the measurement site, compatible with smartphones and tablets running iOS and Android.
What does the user get by purchasing such a device: reliable electronics checked under the radiation load in the plant’s laboratory, a stylish color case in the spirit of Malevich;) for every taste, gift wrap, color instruction leaflet in Russian and English, a special cable for recharging the gadget through USB port, DO-RA.Pro free updatable app from the App Store and Google Play.
The next step in the implementation of our project is to find the optimal sales channels for Made in Russia products in a difficult environment of stagnant purchasing power.
Domestic network sales channels
In practice, the choice of promotion of DO-RA line devices was limited by a number of factors inherent in our investment opportunities, combined with the features of network retail, and above all: the price of entering the network, the possibility of consulting support for selling goods to the consumer, the size of audience coverage and the commission of the network, and the timing of the return money for goods sold, advertising budget.
In the Russian Internet space, the main non-stop e-commerce market players were selected: OZON, GADJET, CSN Retail, and others, where the first mini batches of our products were sent for review.
Then, representatives of the DO-RA product distributor began dialogue on promoting the goods in the networks of mobile retailers, and in particular, negotiations with the Svyaznoy company and its network of offline stores, all of which consist of more than 5700 stores (single brand + franchise). Svyaznoy agreed to take the first hundred DO-RA products for testing for its C-Store.ru network.
Negotiations were also held on the promotion and sale of DO-RA products in networks owned by other large companies, such as: Megaphone - 5350 stores (single brand + franchise + 50% of Euroset stores), Beeline - 5000 stores (single brand + franchise) and Tele- 2, which at the end of 2018, in total, had about 15,000 communication salons. Negotiations began with specialized electronics stores: M-Video, Eldorado and others.
It is important to know that in addition to agreements on the sale of devices with a retailer, there are a number of features for “entering” their network that are worth considering. For example, the commission of retail chains, which can vary in the range: from 15% to 30% of the cost of goods in retail, that is, on the virtual shelf of the store. By the way, virtual world networks operate on the upper border of the commission: Google Play and the Apple Store, which take a fixed 30% from each purchase of users in their online markets. At the same time, the initial fees of product owners on Google Play are $ 29 for registering an account, the contribution to the Apple Store is $ 99 per year.
However, there are commission record holders - some Russian retailers who ask for up to 40-50% of the retail, which is the face of the profitability of sales of any product. We immediately declined such offers.
In addition, we must not forget about the period of return of money for goods sold, which in Russian retail, as a standard, ranges from 3 to 6 months. At the same time, for some retailers, a systematic delay in the return of money can reach from 1 to 2 months in addition to the term for the return of money specified in the supply agreement.
Foreign retailers declare shorter periods for returning money for goods sold. In particular, AliExpress promises 1 month to refund for goods sold, which also includes 14 days for possible claims or return of defective goods.
Actually, all of the above factors just determine the final retail price of real goods on the virtual shelves of Internet retail.
In many cities, including Moscow, there are souvenir segment retail chains working with tourists from around the world. This is an interesting direction of trade and it was worth exploring.
I decided to drop into a souvenir shop in Moscow on Plyushchikha myself, as I am driving past work to work in the morning, watching the busload of Japanese buyers. However, it quickly became clear - not a format, they at this point do not sell at all any, even simple electronics (really, why is it to the Japanese;). An explanation from the staff was this: - They mainly bring here Japanese pensioners from the deep provinces of Japan, who are little interested in wearable electronics and gadgets.
Among the global e-commerce channels, we have identified several networks where gadgets of DO-RA could be sold. They turned out to be the three largest: Amazon, AliExpress, eBay, as well as: Taobao and Tmall - working mainly for China and Rakuten - mainly for Japan. The largest Southeast Asian online marketplace, Lazada, is Asian Amazon, which sells products mainly in the high-end segment: we left it for a snack in Malaysia, Indonesia, Singapore, Thailand, Vietnam, and the Philippines.
Amazon.com, the world's largest online retailer and one of the oldest online sites on Earth with headquarters in Seattle, was launched in 1995. Half the world and in particular: Canada, the USA, Great Britain, Germany, Brazil, Japan, India, Italy, Spain, China, they buy everything here - from pens to tires.
To become an Amazon seller, you must:
- Before opening an account, open a special account. It is worth knowing that Amazon has a monetary limit for conducting transactions on the Internet.
- Having created a personal account on the site, determine the format of who you are: Individual or Professional Seller. The format depends on the size of the trade, branding and other features.
- You must also register your trademark. Registration of a trademark allows you to specify a unique key that is useful for the withdrawal of goods without the use of standard tools (EAN, UPC).
- For registration of a trademark you will have to pay $ 275 in one category or $ 550 in two or more categories.
- You can register a trademark on your own, for this you need to fill out a special form - “Administrative tribute” in English on the USPTO website so that the application can be considered. The cost of the operation is $ 300.
- If you have difficulty registering a trademark with Amazon, you can hire an English-speaking assistant, which will cost an additional $ 300, or go for a more expensive option from $ 1000 - hire an attorney to quickly register with Amazon.
- When you sign up for Amazon, you’ll be prompted to assign the primary attribute. This is a special trademark number. Can choose:
- vendor code;
- style, catalog, model numbers.
- The main attribute of the product is automatically taken into account as the original one, it is impossible to change it in the future, so immediately select the best identification codes for your product.
AliExpress.com - no online store in the world is growing as fast as AliExpress. The Chinese corporation Alibaba Group owns this resource. She owns the largest online marketplace for entrepreneurs Alibaba.com.
The main plus of the online store AliExpress - the seller will not be able to receive your money for the goods until the goods reach you: the site has a customer protection system that guarantees a refund.
By the way, at the end of 2015, a ceremony was held at Skolkovo to award the winners and prize-winners of the Skolkovo Foundation competition and the Alibaba Group company - AliExpress Challenge. Our company Intersoft Eurasia won the first place in the nomination “Ready-made product for promotion on the world market”. However, then there was not enough investment to launch the product in industrial production. Let's try to use this prize at the moment to promote the product. Now, the DO-RA gadget can be bought from a Russian distributor online or in the above-mentioned communication stores.
To become a seller in AliExpress you must:
- For foreign entrepreneurs, when organizing their own store on AliExpress, it is worth considering the presence of an address and a phone number in China.
- To register an account, go to seller.aliexpress.com . The site works in several languages.
- Registration confirmation is given 24 hours. After the specified time, the link will be invalid.
- When registering, an activation code will be sent to the phone number you specified. It takes exactly 60 seconds to enter the code, hurry, otherwise registration will have to start all over again.
- In addition to the account on the trading platform, you must create an account in the Alipay payment system.
- After confirming the registration, proceed to the next step - setting a password, indicating the surname and name, mobile phone number, address, business model:
In the last column - Internet experience, you must specify one of four trading platforms:
- Alibaba (China's domestic trading platform);
- Alibaba (international marketplace).
- The final step in creating a seller account on AliExpress is to provide a photo of the entry stamp and visas.
- If you completed the above registration procedure successfully, you will automatically be assigned the status of a novice seller. At this stage, you will have the opportunity to place an assortment of up to 50 products. Over time, if the seller’s status grows, the limit on the goods sold will increase. Verified sellers can place up to 300 positions, sellers with Gold status - up to 5000.
eBay.com is one of the largest trading platforms on the Internet, and it appeared in the USA all in the same gold for online trading in 1995. This is not just a retailer, but a place in the history of virtual trading. Users appreciate this online store because there they can not only buy, but also sell: new or used items, antiques, electronics, and choose a direct purchase or auction.
To become an eBay seller, you must:
- Come up with a simple, memorable login for the client. It will be easy for customers to recognize you and your product in the future.
- Confirm constantly working mail box - e-mail.
- Create your PIN-code through a mobile phone, for the convenience of its recovery, in case of loss.
- You must also have your PayPal account, and it is recommended that you confirm your already registered PayPal account, which will save losses on the exchange rate difference between the ruble and the dollar.
- An eBay passport is sufficient to verify your identity. Enter the information in the appropriate fields and attach the scan of the first page. The verification will take a maximum of 5 days, after which the account will be considered verified.
- Remember to accept the refund program. Without this, trading on eBay is impossible, because the site guarantees people a refund in case the product turned out to be defective or did not reach them. To do this, again go to the "Personal Information" section of the site where you created the PIN code, and a little lower you will see the column "Method of payment of compensation". Click “Add”, select PayPal as a payment method, log in to PayPal and accept the license agreement.
- Congratulations, you are now registered as a seller and you are ready to display your first product on eBay.
To be continued ...
May 13, 2019