Terms of Engagement- Wholesaling part III

This is the final installment on wholesaling. You can read part I here and part II here. This time we are going to cover terms and invoicing.

You already have figured out your terms if you worked through the first parts of this series. Your terms cover your discount, minimum orders, payment methods and when due, shipping methods and charges, and any other information you find pertinent. They are written out in detail, and once signed by you and the company it will constitute a written contract. Here is a sample term using our imaginary widget company.

Wholesale terms and conditions
Widgets & Things Custom Doodads

Wholesale terms are extended to qualifying dealers at Widget & Things Custom Doodads sole discretion. Terms and conditions are subject to change.

Dealer Application
To establish yourself as dealer for Widget & Things Custom Doodads mail or email a signed copy of these terms along with a copy of your resale license and three (3) business references.

Minimums
Initial order- Minimum order of $200 excluding shipping.
Reorders- No minimum requirements for reorders/restock. For orders under $50 a small order handling fee of $5 applies.

Payment
Prepayment by credit card only. You may place a credit card on file to expedite reorders.

Wholesale Discounts
Discount is applied to suggested retail price. There is a 50% discount on Doodads and a 30% discount on Widgets.

Shipping and Handling
You pay actual shipping cost plus a $5 handling fee on small orders below $25 before shipping. There is no handling fees on orders above $25.

Shipping Methods
For US locations we ship via USPS Priority mail including insurance. For International orders we ship USPS international priority. For shipping times, please refer to the attached production schedule.

Additional Terms
We reserve the right to terminate this agreement at any time before payment is received. All Widgets & Doodads will be branded with the Widgets & Things Custom Doodads logo. At the time of your order we will confirm our current production schedule. It is your responsibility to confirm there have been no changes to the production schedule prior to any reorders.


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As you can see, the terms are simple and straight forward. Yours won't look exactly like this, but this is a good model to build yours from.

Invoicing is the final piece in the puzzle. If you process all your wholesale orders through Etsy, this step is more or less skipped when you post the reserved listing and you can print the receipt from Etsy to include in your order. If you will be invoicing outside of Etsy, I'll briefly cover the information your invoice will contain.

• Invoice number (This will help both you and the dealer keep track of your paperwork)
• Your name, address and phone number
• Date
• Name and address of the retail buyer
• Shipping address if different
• How the item is shipped
• The quantity sold
• A description of the item
• The price per item
• Price for the total quantity sold of a particular item
• Subtotal for all items listed
• Shipping charges
• The total amount due
• Buyer's signature
• Any disclaimers regarding returns or damaged goods

You will keep a copy of this invoice as well as giving a copy to the dealer who purchased the goods. If the buyer is out of your area, you may not require they sign the invoice, but you will keep their signature on file on the terms paperwork.

I hope this has simplified wholesaling enough to encourage you to try it as well. This is a wonderful way to make your small business sustainable for the long term. If you have any questions or comments, I would love to hear them!