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!
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