Caution Working with Big-Box Retailers

Getting big orders from large retailers sounds great, but they don’t make it easy.

“The other big thing to prepare for is the payment terms,” says Dan. “A lot of these big box stores won’t pay you for 60 days after receiving the shipment. Meanwhile, you’ve probably put out all your money 60 days before you deliver the product to them, so you’re out that money for almost 120 days. Cashflow can be a challenge.”

Plus, a big order is great for volume, but Dan cautions that you’ll need to take another look at your numbers when you’re handling large shipments.

“Once you’re dealing with these big orders, they’re great, but you have to output so much more because the volume’s so much bigger. Your margins are smaller because you’re dealing with a big box store, and you’re not getting paid for longer. It’s a different game.”

from the post How to Prepare Your Store to Work With Big-Box Retailers at Shopify Blog – Company

Andrew @ EcomLoop
Are you looking to start or grow a standalone ecommerce shop? I help independent businesses achieve success on the Shopify and WooCommerce platforms. As the owner of multiple ecommerce businesses, I've had the opportunity to get experience with nearly every aspect of the ecommerce industry. I started EcomLoop to help other quality independent businesses using my knowledge and experience. To stay on top of new ecommerce developments, I publish The EcomLoop Weekly Loop, a blog and email newsletter with original thoughts and curated links to help independent businesses improve their businesses.