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  • Essay / The Realities of Worldwide Hardware Sales and Distribution

    Table of ContentsAssessing Government ComplianceCommunicating Throughout the Supply ChainMaking the Most of ReturnsCustomer ServiceAt the Startup Launchpad conference last October, we had the opportunity to hear from Dana Madlem, VP of Sales at Rush Order. , a third-party logistics provider that helps startups organize and fulfill orders from retailers and end consumers. Dana spoke to a room full of bright-eyed hardware startup founders to prepare them for the same global distribution journey that Rush Order's past clients, including GoPro, McAfee, and Roku, have successfully undertaken. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Assess Government Compliance The first box you should check on your global distribution checklist should be about the legality of your international shipments. When your product crosses borders, consider any customs duties, sales taxes, and value-added taxes that may be required for entry into the country. These additional costs can add up, and in some cases, customs duties can reach almost 100% of the product value, as is the case in Brazil. With that in mind, consider whether there are any countries that won't be included in your international distribution plan - or at least not right away. Communicate Across the Supply Chain When you distribute globally, your sourcing, production, logistics and retail partners may span multiple countries, inevitably complicating delivery schedules. 'shipping. You may manufacture your equipment in Shenzhen and store your product in a warehouse in Hong Kong, but you plan to distribute it to sales channels in Asia, Europe and the United States. Make sure there is good communication between all links in the chain to avoid loss or damage to a product, or damage to your reputation. For example, retailers will want shipping notifications to indicate when they can put your product on their shelves, as well as invoices on time. Make the most of returns On-site selling is not the same as direct selling. Sell-in refers to sales that put products on shelves, while sell-through refers to the percentage of the product that actually reached the end customer through the retailer. Ultimately, startups will receive payment for items that sell and stay with consumers, particularly for those that remained with customers beyond the typical return window of 30 to 60 days after the initial purchase ; In this way, we want to minimize the number of customer returns to retail stores. Unfortunately, returns are inevitable, especially when selling in brick-and-mortar locations, and a startup distributing globally needs a way to manage them. One way to handle returns is to create refurbished products and set them aside for warranty replacements or sell them at a discounted price. Customer ServiceTo continue to make sales and retain customers, especially when selling a "smart" device, there must be a way for customers to receive technical and order fulfillment support in a reasonable time. Ideally, you should have a team that helps you manage these requests which can now come from all over the world. Customers are increasingly referring..