2006
(I have my orders ready to ship?but who pays for shipping?)
Posted by: Fashion06 in Starting your own line |
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Most of the time retailers pay for shipping which will be included in the invoice you shipped with the purchased garments unless of course your company has some special incentive; for instance increasing the chance of retailers to buy from you or the quantity by offering free shipping or going half on it. That is the answer I gave to you in the article on FAQ?s of starting an apparel line from scratch. I am giving you terms and incentives too increase retailer purchase orders.
Today we are going to go into a little more detail on shipping and terms. Some apparel lines have set prices for shipping when it is domestic (not overseas) or handle each order differently. Usually prices range from low to high quantity orders or the total value of the order. Let?s say just for example orders $150-$450 shipping is $12, $450-$750 might be $15 and it gets pricier from there. These prices will most likely change when shipping internationally to other countries.
Like I mentioned in the first paragraph some apparel lines offer incentives to increase the quantity of the purchase. You may want to offer free shipping on orders over $700 or orders over 50pieces. A form of trade credit (exists when one provides goods or services to a customer with an agreement to bill them later, or receive a shipment or service from a supplier under an agreement to pay them later) you can offer is net-30 (which specifies payment is expected to be received in full 30 days after the goods are delivered) you can also let them know if they pay within 10 days after shipment you may offer a 2% discount which is called 2% 10, net 30. All this refers back to our article on Purchase Order Financing with No Money Upfront
Most entrepreneurs who start clothing lines process orders through C.O.D (collect on delivery) which means when delivered the retailer must pay before receiving your goods. Most small apparel companies do not have sufficient capital or process enough orders too have merchant accounts (credit card processing). Your company can deliver orders directly to UPS or have them come by your office daily for scheduled pick ups through the week. You can setup this service with ups by clicking here.
Once you start an apparel line from scratch you will get a feel for how you will handle shipping too best suit your company needs. Whether it be a set chart or handling each order differently. The choice is ultimately up to you.
The prices set in the above article in no way reflect actual pricing of shipping. Prices range from company to company to best improve their bottom line.
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