Question

Topic: E-Marketing

Can I Generate An Income As A Middle Person Seller

Posted by Anonymous on 3/20/2008 at 10:31 AM ET 125 Points
I have been given the opportunity to sell a product imported from China in North America. There is a direct contact person with China that will sell the product to me wholesale and I then I can add a mark up and sell it to retailers. The primary importer has a website and is willing to take direct orders over the internet. I have stated that I would like to have a territory designated to me but can't understand how a customer that I contacted won't perhaps go to my distributor and order directly from them. Is there a way that wholesellers can be guaranteed their commission for a given territory? How does it work with the internet?
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RESPONSES

  • Posted on 3/20/2008 at 11:51 AM Member
    I rep some products, I deal directly with the manufacturer. If you're dealing with the main rep that has the exclusive, you must ask for a territory that guarantees all sales from that area are given to you. No matter if they come from a different source or not. Always get a signed contract.

    Another angle could be that you supply a list of everyone you contact daily, if anyone on this list goes around you, you still get credit. Again, always get a contract.

    And no matter what, even when you have a contract, someone, at some time, will try to screw you out of your money.

    If you are a true rep, you do not buy inventory either.

    If you can't get a deal in writing, don't waste your time.
  • Posted by Peter (henna gaijin) on 3/20/2008 at 1:27 PM Accepted
    I agree with Schulte - you would have to get agreement with the direct contact person in China that any sales from certain markets can only go through you. If you can't get this, then it likely means that you will be competing with others.

    There is not any technology or otherwise that would track all the sales of another entity (like the main contact) to know where they are selling. Only people inside a company can track this, and they would not give information out. So all you can go on is trust that they will do what they agreed to.

    That said - things can be a bit free wheeling when it comes to China. Even if you do get a guarantee, you really don't have much protection. It likely will happen. But you should do what you can to make sure that you get as much protection as possible - such as by after getting the agreement, making sure the main contact has it marked on their website that the territory is taken (and they really should also have a dealer locater feature sending people to you). Plus watch the market and see if other companies are setting up sites that sell the products to you. What you are trying to do is minimize the amount that it may happen.

    On the plus side - if the main contact is in China (or HK or similar), and you are selling to North America (and you are located in North America), you will find that most of your customers wouldn't want to deal direct with China. They will want to deal with someone local and pay in local currencies.

    Downside - if the sale is only over the web, you probably can't get the guarantee. Sites like eBay make it easy for anyone, anywhere to sell the products. I am not a power seller, but the few times I have used it, I have been impressed with how seamlessly it makes international transactions.

    In the end, it comes down to how good you are at serving customers and makings sales. The contact in China wants to sell, and if you do that well, they will do a lot for you. if you don't do that well, a territory guarantee won't protect you from being dropped.
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