This article deals with the process and details of SPACEGOATS's retail/trade billing process. The steps of this process and associated term explanations are described in detail to better understand the procedure.
- Purchase of Goods: SPACEGOATS purchases the goods at a pre-agreed price.
- Sales: The goods are sold in Europe and the USA via Shopify and Amazon.
- Advertising Control: The customer retains control over advertising expenses and measures.
- Margin Calculation: SPACEGOATS discloses the margin calculation for the final selling price, which can be used to calculate the selling price to the end customer. Alternatively, an automatic, AI-supported pricing tool can be used.
- Payment: Upon sale of the goods, the selling price is paid out to the customer the following month.
- Unsold Goods: If the goods do not sell within the agreed period, SPACEGOATS transfers the selling price to the customer, less a deduction.
- Goods Request: In case of impending stock shortage, SPACEGOATS can automatically request new goods, or the customer takes over the delivery.
TACOs: Customers can independently control their advertising costs and thus TACOs (total advertising costs in relation to sales). A higher TACOs rate is recommended, particularly in the NEM area, as the ranking advantages achieved through PPC can improve organic ranking.
Risk Margin: This indicator can be reduced, especially when costs are covered by flat rates. Customers can adjust this value as they see fit, taking into account costs such as return risks, efforts for lost units, etc. To reduce this, we need past customer data. If our margin of 4.9% does not provide sufficient coverage, the Risk Margin is used to offset the increased risk.
Payment Terms: Payments are made on the 4th and 18th of the following month after receipt of the selling price in the SPACEGOATS business account.
Pricing: Pricing can be done by SPACEGOATS using third-party software and is based on a margin of 4.9%, plus the Risk Margin.
Advertising Measures: Advertising measures are agreed by mutual consent and charged to the retailer as advertising costs. The financial resources used serve to increase brand awareness and market success. If a lower revenue than the agreed purchase price is achieved, for example, by reducing the selling price to end customers, the price reductions are billed as discounts and advertising measures on the service invoice.
Delivery and Invoicing: Deliveries to a SPACEGOATS warehouse are either according to SPACEGOATS specifications or in consultation with the dealer. Invoice data are recorded online and are essential for payouts. Deviations can lead to non-invoicing and, in the case of repeated violations, to fees.
Additional Logistic Effort: Special agreements result in increased logistic expenses for SPACEGOATS, which are billed to the dealer. A list can be provided to the dealer if needed.
Storage and Damage Cases: In case of damage or destruction of contract products during storage, SPACEGOATS commits to preserving the rights against the warehouse service provider. Any compensation will be paid out to the dealer.
Non-Sale of Goods: Goods that are not sold within the set period can be billed by SPACEGOATS with an expense compensation of 50-75% of the goods sales value.
Selling Prices: These should be coordinated with SPACEGOATS, as they form the basis for the selling price to the end customer. Advertising costs are billed as a service. A reduction in the selling price is possible, but must be agreed upon and is counted as advertising costs.
Calculation of the Selling Price to SPACEGOATS: Two spreadsheet tabs are available for this: 'purchase_price_calculation' and 'purchase_price_calculation_forward'. These take into account different variables/cost factors such as VAT, commission, risk margin, TACOs, shipping costs, storage costs, and other costs.
Service Invoice (SI): Additional services, such as inventory adjustments and services booked by customers (e.g. PPC costs, packaging costs, other service costs from Amazon), are billed in the monthly service invoice.
Difference Amount Credit (DC): A so-called self billing invoice with a negative amount, as here, expenses are invoiced that reduce the selling prices to SPACEGOATS. Usually, when the goods were not sold within the agreed period.
Handling and Provision of Product and Invoice Data at SPACEGOATS
This article covers the key aspects related to the provision and handling of product and invoice data in the context of SPACEGOATS. To ensure efficient and correct handling of business processes, certain guidelines and procedures apply.
Customers are required to provide the following information in the respective columns:
- Shipping Date: The date the product was shipped.
- SPACEGOATS SKU: The unique product identifier according to SPACEGOATS system.
- Channel: The distribution channel through which the product was sold.
- Product ID (optional): The specific product identification number, if available.
- Number of Units: The quantity of the product sold.
- Net VK (according to invoice): The net selling price of the product according to the invoice
- Invoice Number: The specific number of the invoice that the transaction refers to.
- Destination Shipping Warehouse: The warehouse where the product was shipped to.
- Originator of Shipping/Sales: The party that ordered or commissioned the shipping or sale of the units.
- No Data Changes: The data provided must not be altered. Any subsequent changes can cause costs, usually up to 50€ per line.
- Bundles and Multipacks: The product sold to SPACEGOATS must match the product sold to the end customer. For example, if a product is sold as a 5-pack, it must also be recorded as such in our system. A 5-pack and a single product cannot have the same SKU/product number.
Random Sampling Review
To ensure the accuracy and consistency of data, a random sampling review is performed. If errors or discrepancies are found, costs can be billed to the customer.
Necessity of Notification for Changes
If data needs to be changed, it is absolutely necessary that the customer informs SPACEGOATS about which specific data was changed. Unreported changes can lead to inconsistencies in the billing and additional costs.
Adherence to these guidelines ensures a smooth business operation and minimizes the risk of errors or discrepancies in the provided data.