Souq business model 03/2017
Business Model:
- Back to back retail Model
- COD + Credit card
- Souq EOD will send daily PO with all the products
- Pentagon will confirm PO no max following Morning
- DHL will pick up from Next/Pentagon warehouse in UK daily after 24 Po is issued
- Souq will do the importation, clearance and last mile delivery
- No Returns for International model unless is a defect of fabric (case to case basis)
- Target delivery from click to Customer for International 5 days max.
- Payment 15 days after We receive the product in our warehouse.
- Once product is picked up from Next/Pentagon Warehouse there is not return. We own the product.
- Margin we will mark up is 20%
- Payment is 15 days after we receive the product in our warehouse.
- We pay through TT and now I'm working o getting Payoneer integrated.
As we are going to absorb the returns and we will be managing all the fulfillment ad importation Line the margin I'm working with all the International sellers is 20% of the Selling price. This margin will allow me to cover duties, clearance and returns.As I said I need the costing price and I will mark up the margin and international shipment int the selling price in SOUq.
We need to make sure this process is smooth and we all have alignment on the handling times to make sure end consumer has his product in no more than 5 days.
We will have the universal API by the first week of April. After this we could be able to be up an running. We can start manually with Next. I just need excel with stocks product name, uRL to the site I can pull the content and Cost price.
The categories I'm most interested are:
- Fashion
- Baby Clothes
- Watches
- Beauty
I believe in those categories is where we have the biggest gaps on selection and can be a really good business for Pentagon.On the other side once we have the products live we will prepare a plan for merchandising them and drive the largest amount of traffic to increase conversion and sales.