Distribution - Cost & retail price
Here is a quick review of average commissions with French stakeholders and type of services you will have:
The rate depends on categories of your product and type of stakeholders
Marketplace: 8% to 15%
Sales unit per unit
Big Retailers: 30% to 50%
First purchase order per retailers with scalability
Distributor/wholesaler/Agent: 35% to 65%
Negotiation with decision makers and commercial opportunities with retailers
Operational Marketing with ambassadors
POS brochures & marketing
Several purchase orders from many retailers at the same time with scalability depends on sales performance
So sample 40% to 60% for distribution, depends on product category & setup price for LandInFrance program
So sample is not a distributor or an agency, we are a team specialized in the distribution of consumer electronics brands and connection with early majority. Our services are the best bundle to launch hardware products with big companies/retailers thanks to our exclusive partnerships, and Brand equity with retailers all around Europe.
Offering a launchpad, metrics and purchase order with many retailers
All these commissions rate are based on the retail price without taxes. Think about VAT in France with 20% for consumer electronics brands.
If you want to sell your product in retail stores, in the wearable category for example, at 120€ without taxes / 144 € with taxes, think about the margin that you could earn if you want to reach a new market and sell your product nationwide. Plan in order to be ready the day you wish to sell thousands of units per quarter through a retailer purchase order: the maximum rate is 45% (wearable category) in France so 66 € minimum margins per product.
Even if you start with sales only online with a marketplace, you should build your pricing on this rate in order to have a long-term vision and power of negotiation with distributors and retailers if you decide to sell your product in stores later. Always be ready for bigger opportunities!
More details about our solution