Joint purchases are a way to buy goods at a wholesale price with a small organizational fee. As a rule, such purchases allow participants to save well – the collection is 15-18% less than the margin in the store 100-200%. But such purchases have their drawbacks, and the organizers of the joint venture often have to deal with problems in the process of purchasing selected goods. You will learn how this type of trade works and whether it is possible to earn money from our article.
How joint purchases work?
Joint purchases – a type of purchase of goods in bulk, in which several people participate under the control of the organizer. Participants in the purchase choose either the same product, but different sizes for the redemption of the size, or book the goods of one seller for a certain minimum amount for redemption.
Most often, joint ventures are organized on the basis of social networks (Vkontakte, Odnoklassniki), in forums where one of the participants organizes the purchase or on specialized joint venture sites where dozens of organizers work under the contract.
As a rule, any joint venture organization has an owner, it creates a website or page and invites administrators, moderators, technical support specialists and others to work. The larger the site, the more organizers (administrators) can work on it.
An important difference between a joint venture and a store is that only the buyer himself is fully responsible for his choice . The organizer does not see the product in advance, does not know about its quality and cannot foresee what it will receive after the purchase. If the product comes with a serious marriage, as a rule, it turns out to be returned. If the size doesn’t come according to the necessary measurements, the color does not correspond to the photo, the purchased item does not smell, sits or is not so neatly made as in the photo – the organizer is not responsible for this.
In the case of a group on a social network or a specialized site, they can help you sell the wrong thing, but nothing more. It’s a shame, but a lot of things are still not sold. That’s why risky purchases with minimal payment . TD Bank Routing Number Only in the store you can measure, touch and consider a thing, but you will have to pay extra for this.
A separate topic is created on the forum dedicated to a specific product or seller, a link with a catalog of goods is offered, and each of the forum participants must drop the link for the selected product. As a rule, it is difficult to hope for the diligence of forum participants. The one who decided to organize the collection assumes responsibility for the purchase:
- creates a personal account on the seller’s website;
- collects the minimum order for bulk purchase into the basket;
- notifies order participants of the need to deposit a certain amount into his account to pay for the purchase (taking into account the established commission – organizing fee);
- after collecting the necessary amount, the organizer confirms the order and communicates with the moderator of the supplier’s website about the availability of selected items;
- if everything is in order, the order is paid, and the organizer is waiting for the parcel to the specified address;
- the received parcel is sorted and sent to the addresses of the participants in the collection.
Social network site
For those who constantly use social networks, an invitation to subscribe to a joint purchase group will not be new. Such invitations can be received daily, most importantly, pay attention to the number of subscribers and the range of goods . As a rule, starting such activities on social networks from scratch is now very difficult. Many users do not trust pages with a small number of subscribers. It is much more interesting to cooperate with sites that are already overgrown with assortment, by participants, which means that there are more likely to grow.
One administrator can conduct several albums at once , be it children’s clothes, toys or jewelry, for example. Photos with the description of the goods are laid out in the albums, and under the photo people put reservations for the goods they like. Work as an administrator, at first glance, seems uncomplicated. But in order to make a profit for them, it is necessary to constantly monitor reservations, mark them in the order, control the minimum order, the availability of goods in the warehouse and conduct continuous advertising in order to quickly collect the necessary number of requests for redemption.
The further process is under construction according to the similar plan with a forum:
- after collecting a minimum salary or a size, the admin writes to the supplier to clarify the availability of the selected product;
- then invoices are issued for payment, in which the organizational fee has already been laid (usually a day is given for payment);
- after receiving the money, the administrator makes an application to the seller, pays for the goods and waits for the parcel to come;
- then, having received it: parses, sorts and sends to the participants.
As in the example with the forum, in case the thing does not correspond to your idea, it will not work to return it , since you initially assumed the risks. Of course, you can contact the administrator and ask about the placement of the goods in the album “in stock” or “help to sell”, indicating its real parameters and providing a fresh photo in normal lighting. How long the sales process will take is not known, so you should approach the selection of goods responsibly.
To buy something on a wholesale site via the joint venture system, you need to have an account, enter real information and confirm your account. On the site, in addition to the pages with the available goods, chats are posted where participants can leave feedback on the received goods and recommend each other the organizer they like. According to the rules, the organizer can conduct several fees for different types of goods at once. He himself chooses suppliers at his discretion and concludes contracts with them. Using the site system, all stages of the sale are automatic. The administrator must keep a strict record, which can then be checked electronically by making a selection for any product or tracking the previous purchases of a particular customer.
As a rule, to work through joint venture sites, intermediaries need to register an IP so that in the future they will not receive a fine for conducting shadow business without paying taxes accordingly. Depending on the chosen taxation system, intermediaries working in a joint venture pay a tax of 6 to 15% of the income or profit received, and at the same time earn their retirement experience.
For employees of joint venture sites, the work is built according to the following plan:
- Search for good suppliers . Most often, direct manufacturers are preferred, rather than large wholesalers. You can negotiate discounts with manufacturers or get reliable information about upcoming collections and available products.
- Having concluded a cooperation agreement , they receive a catalog of goods and post it on the site. It is worth noting that unloading a large number of goods requires serious time costs. To simplify this process, there are special applications that help copy a directory for a fee, many times faster.
- The next stage is the opening of the purchase . Albums become visible to members, and they can set reservations. As a rule, the organizers can contact the participants via chat to answer questions. But it’s worthwhile to understand that the organizer is not a direct supplier, which means that he does not know many of the nuances, and in fact is an ordinary intermediary with a minimum of information.
- The organizer page accumulates information that allows you to track whether the minimum order has been accumulated . If the product is in demand, it will be possible to collect more, only in that case the organizer will be able to reach a more attractive amount of the fee. But you can’t delay the collection, the goods can simply end in the warehouse.
- After collecting the required amount, the fee is closed , and customers should understand that it is no longer possible to refuse the selected product. At this stage, the administrator communicates with the supplier and sends him a pre-order.
- If everything is there, the intermediary invoices for payment . Participants have no more than 2 days to pay for the selected product. There are irresponsible buyers, as a rule, they may delay the purchase.
- The next step : paying for the order and tracking its delivery. The administrator fully controls the process and tries to combine orders so as not to make empty trips to points of delivery for one small parcel.
- After receiving the goods, it is sorted, packaged for each client and sent to the addressee
If you are a member of a joint venture, you must understand before you buy a product, you should decide for yourself whether you are prepared for risks. You should study the prices in stores. Ideal – if you saw a product, and even measured it in a store, and then saw it on a joint venture and ordered at a price 2 times cheaper . In this case, the benefit is clear. Ordering cheap goods is often frustrating, and there will be no one to blame.
For those who want to work in this area, it is worth considering several facts at once:
- You will work with people . No matter how many times they write that the intermediary is not responsible, but with each order of goods there will be at least one participant who will remain dissatisfied. The situation is the same in stores, so you just need to pay less attention to minor issues.
- Earn a lot right away . Only a constant build-up of the client base and expansion of the assortment will help increase revenue. And this means devoting several hours to this type of activity will not work.
- Get ready to carry heavy bags all the time . Ideally, if you have helpers and a car, otherwise it is better not to mess with such activities.
- If the goods are lost or damaged , this is only the responsibility of the organizer and you need to be prepared for this.