Info on proposed model for Next
April 4, 2017
Based on the conversation we had yesterday
- Back to back Retail Model
- Process as Follow:
o Next provide full catalog to Souq
o Souq does the cataloging and the uploading of the products.We can start manually and integrate once API is done.
o Souq EOD Dubai time issues a Daily PO with all the products sold during the day
o Next confirm PO EOD
o DHL picks up from Next warehouse daily the products(24hours handling time)
o Souq does importation, clearance and last mile delivery
- Next only needs to confirm order and prepare the bulk
- We can start Manually and by end of April we will have our Universal API so we can make the whole process automated.
- Souq will manage International logistics, clearance of the items and payment of the duties.
- No returns for Next
- Souq will absorb the returns
- In case there is a defect of Fabric Next needs to replace the item
- Souq handles any customer request
- To guarantee the payment we can issue a Standard Bank Letter of credit. We can increase the limit as we open the rest of the countries. We can start with 50k USD.
Regarding the terms and Conditions:
- 20% margin for Souq mark up on the cost price
- NO Returns to seller unless there is a defect of fabric
- We will offer Cash on delivery and Credit cards
- We pay 15 days after we receive the product in the warehouse
- We start only with UAE and once the flow works we can open KSA and CBT to Bahrain, Kuwait and Qatar.
Please find a flow on how we will work:
