Many retailers require liability insurance before doing business, and it’s not just a formality—it’s essential for protecting your company. This insurance provides coverage for any damages or injuries related to your products or operations, shielding you from potential legal and financial liabilities.
The required coverage varies by retailer, and some vendors may already have it in place if they sell online. Regardless, understanding these requirements is crucial when approaching buyers and starting
new partnerships.
FOB: THE RETAIL INDUSTRY’S MOST MISUNDERSTOOD TERM AND HOW TO AVOID COSTLY MIX-UPS
In the retail world, there’s a widespread misunderstanding that has even become part of the industry’s language. The term “FOB” (Free On Board) is often misused, and the original meaning gets lost in everyday conversations.
Typically, FOB refers to a price quoted for goods loaded on board a shipping vessel. However, many retail buyers mistakenly use it to mean “Free On Warehouse.” For example, when discussing shipping locations, you might hear buyers ask, “FOB where?”—which they use to mean the location in the U.S. where you’re shipping from. Or, when they want a price that includes freight, they might say “FOB.”
As vendors, it’s important to understand this common mix-up so you can respond accurately and keep communication clear. Miscommunication on these terms could lead to unexpected costs or complications.
Be sure to clarify these details when negotiating terms with buyers to ensure smooth operations and avoid any surprises.
📍ONE OF THE FREQUENTLY ASKED QUESTION WE RECEIVE IS:
“What happens if a retailer doesn’t successfully sell my products? Can they return them?”
Answer: Typically, retail agreements do not function on a consignment basis. Once a retailer purchases your products, the responsibility for selling them falls on their shoulders. Returns are generally not part of standard practice.
📈 STREAMLINE YOUR SHIPPING WITH DPS LOGISTICS
We got this great recommendation from a close partner of us, so we thought – why not sharing with you as well?
DPS Logistics specializes in global shipping, sourcing, inspection, and warehousing. With a data-driven approach, they offer real-time tracking, expert logistics advice, and seamless customs clearance. From Amazon FBA deliveries to personalized insurance and group purchase logistics, DPS optimizes every step of your supply chain.
Their worldwide reach, including free 15-day warehousing and big savings on pallet costs, ensures efficient, cost-effective shipping. Ready to enhance your logistics?
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💡UNDERSTANDING THE RETAIL MARKET WHERE TO START
Thinking about taking your business into retail but not sure where to begin?
You’re not alone! In our last webinar with Seller Candy, we covered everything you need to know to get started.
If you’re looking for more guidance, stay tuned for our future webinars! And feel free to reach out to me anytime—I’m here to help you make that next big step into retail.