The topic of joint purchases worries a lot of people. It is quite natural for people to want to get goods for less money, at wholesale prices. And if for this you need to unite in a group, then this is not a problem. So what is online shopping? And how beneficial can it be? In order to understand how SPs work, you need to know the relevant terminology.
Some terms
On most pages of the JV, the organizers prescribe the same conditions (or as similar as possible). All participants use the same terms. But for a person who first plunged into the topic of joint purchases, it is sometimes difficult to figure it out.
So, the basic concepts and terms used on joint shopping sites:
- Buying together (SP) is the process of buying goods at wholesale prices from manufacturers and wholesalers. Due to the large volumes, the cost of productionwill be significantly below the market.
- Organizer - a person who creates a JV page, determines the category of goods for which he will collect buyers, finds suppliers and manages the procurement process itself. That is, the organizer is an intermediary between wholesalers and all other buyers.
- Brand (supplier) - a trademark, company or supplier whose products are identified by certain characteristics from other products of the same category.
- Organization fee - a percentage of the product or a fixed amount that the organizer takes from each buyer for shipping, storage, telephone conversations with a wholesaler, etc.
- Procurement participant - a person who takes part in the joint venture. Each participant of the joint venture must familiarize himself with the rules of their conduct and strictly follow them.
- Minimum price - a fixed minimum amount for which the supplier releases goods at a wholesale price.
- Size range - shoes or clothes of the same article, but in different sizes. Wholesalers often sell goods at an attractive price only in rows.
- Point of issue - the place of transfer of goods.
- Addendum - purchased goods that customers refused, and now they are offered to other participants in the joint venture.
- STOP - a term that says that the minimum wage or size range has been collected, and you can start paying. The word "STOP" means that the purchase can no longer be abandoned, otherwise there is a risk of letting other participants down.
How it works
What is a "organizer of jointshopping", you now imagine. In fact, this is a person who organizes the purchase at any available site and is responsible for collecting money and ordering goods. In fact, it is the one who benefits the most. After all, no one really knows where these 25-30% go - for expenses or for paying for the services of the organizer's time.
What is joint purchases - JV? All stages of the organizer's work with the participants look like this:
- Opening a purchase on the page, full information about its timing, prices, conditions, etc.
- Participants choose products and inform the organizer about it. He keeps a record of everything ordered.
- As soon as the minimum wage or size range is collected, the organizer commands "STOP", and each customer once again duplicates information about the product, prices and conditions.
- JV participants confirm the correctness of the order and their willingness to pay.
- The organizer makes a pre-order of the supplier, and offers alternative options to participants if something is not available.
- The organizer announces the timing of the collection of money and methods of transfer.
- The organizer is placing an order. As he waits, he tells the participants where their goods are (sorting, transport, in stock, etc.).
- After the goods have arrived, the organizer tells you where and when you can pick them up. In this case, if required, the final settlement is made.
Often, JV participants see one price in the catalog, but in fact they have to pay more. This is called an organizing committee. What is the organization fee in joint purchases? These are the costs incurred by the organizer during the execution and delivery of the order. This may include payment for the services of a transport company, telephone conversations, gasoline, if you need to pick up parcels from a warehouse, etc. It's no secret that the organizers take a certain percentage for themselves - as compensation for the time spent.
Playgrounds
What is co-op shopping? For the organizer, this is a way to earn money. For a joint venture participant, this is a good option to buy the necessary goods at wholesale prices. If all parties to the process, including the supplier and the transport company, act in good faith, everyone will benefit.
There are several platforms where the organizer and participants of the JV can interact:
- Specialized sites JV.
- Groups in social networks.
- Separate site.
Recently, competition in the field of joint ventures has intensified. In fact, this is how you can start your own business with a minimum investment. But due to competition, it has become very difficult to promote your own joint venture, even if you offer favorable conditions. As practice has shown, orders begin to form in JV groups in social networks, where there are at least 5,000 subscribers.
Furthermore, shoppers prefer well-designed websites with a large selection, conveniently designed products and clear logistics.
SP Terms
In order to understand what joint purchases on the Internet are, you need to familiarize yourself with the terms of the joint venture in detail. Usually on the relevant pages you can readinformation of this kind: “The organizer is not a seller. We order the goods together with you in the same way, therefore, all claims for the quality of the goods and the risks associated with the fact that the package does not reach all participants to the same extent.”
In fact, this means that in the event of a marriage, the organizer may refuse to act as an intermediary between the customer and the sellers. And he will have to independently return the goods of inadequate quality. Although most conscientious organizers take care of these problems.
While the re-sorting (the same article, but a different color) cannot be refused. As well as it is impossible to refuse the goods at any stage of the purchase, even before paying the money, otherwise there is a risk of being blacklisted. And rightly so, because such a customer brings the rest of the participants.
It should be noted that in some cases the organizers are cunning. In order to understand this, you need to remember once again what the org fee in joint purchases is. Almost all pages of the joint venture indicate that these are funds to compensate the organizer's expenses. The information, as it were, serves as confirmation that the organizer of the purchase is not a private entrepreneur and has no income from this activity. This is a kind of excuse to the tax office.
However, it is no secret to anyone what joint purchases are. And everyone knows how to make money on them. When a person is an organizer, other participants cannot control how, how much and where he spends money. And what percentage does he keep? Furthermore,many JV organizers become individual entrepreneurs and pay taxes in good faith. This means that participants are misled, and they are not dealing with a joint purchase site, but with an online store, perhaps with slightly more affordable prices. But at the same time, the conditions for purchasing goods on such a resource remain very strict, that is, no returns and no delays in payment.
If the order did not please something, then there is a catalog "attachment". What is an "attachment" in joint purchases? These are things that were bought out, but not taken away, or they did not fit the customers in color, size, style, etc. Such goods are put up in a separate catalog and sold either at the purchase price, or - with the consent of the owner - at an even lower price. As soon as the item is bought, the organizer returns the money to the owner.
Product selection
The category of goods and suppliers is chosen by the organizer. As practice has shown, orders are most quickly formed in the "shoes" and "clothes" sections. If you take some highly specialized category, then you need to recruit many times more participants to form an order. It works like this: clothes are ordered, for example, by every 200th participant, and skis or skates by every 1000th, and only in the season. However, there may be fewer competitors in a narrow specialization.
Payment
What is co-op shopping? This is when the organizer collects money from all participants in the joint venture and places an order with a wholesaler. Most supplier companies prefer to pay in advance or deposit 50% of the total amount. So the organizer always collects money in advance, because he does not want or is not able to invest his own.
Moreover, the organizers often collect all 100% of the payment before the formation of the order, even if the suppliers agree to pay the invoice upon receipt. This is done for insurance, so that in case of refusals of the participants, they will not be left with unredeemed things or redeemed, but not attached.
Where to pick up the order
The place of issue of goods is determined by agreement. With small volumes, the transfer can take place from hand to hand, that is, during a personal meeting between the organizer and the participant. Sometimes the organizers of the joint venture deliver things, especially large ones, to addresses and charge an appropriate fee for this. But with large volumes, this becomes very inconvenient. Therefore, many leaders of the joint venture turn to the Central Exhibition Hall for help.
What is the CEH in joint purchases? This is an order issuance center - a centralized warehouse where the organizers send packages and customers receive them.
CEH services are paid. As a rule, it is 15-20 rubles. per week for a small package
Risk for buyer
What is co-op shopping? This is a risk to the participant:
- Give your money to a scammer with an attractive social media page.
- Receive an item of inadequate quality.
- Get a product of a different color without the ability to refuse.
- The ordered item does not fit in color and style.
In fact, the JV participant risks the amount of the order.
Risk for the organizer
For the organizer, the risks are much higher. Here is a list of material losses that you may encounter when starting a JV:
- The cost of creating your page.
- Page promotion.
- Purchase of goods with own funds to finish the minimum wage or size range.
- Loss of the parcel by the transport company.
- Rejection, regrading, returns from customers.
Despite the fact that the organizers insure themselves and stipulate that the goods cannot be returned, some customers manage to insist on their own. Intangible, but significant costs include the time spent on debugging the process and organizing each joint purchase.
Benefit for the customer
What is co-op shopping? This is a direct benefit to the buyer. He can buy goods for 10-30% cheaper than in a retail store. Some people order clothes, shoes and other things from abroad this way. And these are the things that are sold in our country with a markup of 200-300%.
Benefit for the organizer
For the organizer, the benefit is even more significant. The thing is that he can receive money from several sources at once:
- Commission from JV participants. Usually it is 5-7% of the amount, with expenses - 15-30%.
- Rebate services. If orders go through these sites, then part of the funds is returned to the buyer.
- Refund from the bank (cashback) when making purchases with a card. Can return 0.5-2%. But as a rule, these are auction offers to increase the loy alty of customers with limitedperiod.
- Bonus programs from suppliers. In addition to the wholesale price, a regular customer or partner of the company can be given a 5-15% discount. It also goes all in the organizer's pocket.
So that the joint venture is beneficial to all participants in the process. But this activity has its own risks, and they must also be taken into account.
