• Overview
• Custom Merchandise
Manufacturing • Tour Supply
• Online Order
Fulfillment
• Artist Resources |
Online Order Fulfillment:
We've
formed a working agreement with the fulfillment company
Merchsquad to stock and sell merchandise for our clients.
This arrangement allows our clients to sell their own
merchandise through a merch page on their own website,
while Merchsquad processes each sale and handles all
details of the order. This
takes the time and trouble of processing orders out of
the hands of the band, yet allows them to keep full control
over what is sold online. Even more importantly,
bands will keep more income from their online sales than
they would with other online merchandising companies.
How does the process work?
The fulfillment company will
start by creating a merch sales web page that will attach
to the bands existing website. The set-up fee is nominal: $25
for a 5 item site, $50 for 15 items, and $75 for 20+
items. Then the band will decide what items they
want to sell online (shirts, CDs, posters... any kind
of merch the band wants to sell online) and the fulfillment
company will put these items up for sale on the merch
page. Factory Merchandising will stock the online
store with merchandise (except for CDs, pins, posters
and other merch not made by FM, which will be sent to
the store by the band). The fulfillment
company will then take the orders from online customers,
ship the orders and receive the payments. Sales
revenue will be paid monthly to the band, and the fulfillment
company will automatically re-order when the store runs
low.
Why is this different from other online merch
deals?
In traditional online merch contracts,
the band authorizes the merch company to sell an exclusive
item, and that company then pursues sales online.
The merch company manufactures the merch and/or receives
the merch from the band, then sells it and takes a percentage
of the total sales. The usual rate is around 30%
of the total sale.
With our arrangement, the band retains complete
control over what is being sold, and how the sales are
made. The
products are sold through the bands own website, so there
is no need to license the merchandise rights to another
company. The band simply decides which items to
list for sale, and our fulfillment company fills the
orders made through the band's website.
Why will this make our band more money?
There
are two ways a band will make more money with this arrangement.
The fulfillment company charges exactly HALF of what
most companies charge for fulfillment services: only
15% of the total sale. That
means on a $15 t-shirt sale, they only take $2.25 to
package and ship the order and handle all payments and
returns. Secondly, prices at Factory Merchandising
are consistently lower than those of other merch companies.
Even though this arrangement is made available through
Factory Merchandising, we will not charge an additional
fee for the service. The manufacturing costs are
the same as they are for tour merch. In addition,
since we already have the screens for the band's designs,
there won't be an additional set-up fee to make the merch
for the store.
As an example, suppose you sell a t-shirt online for
$15. The manufacturing cost for a one color shirt
is only $4.25, and the fulfillment company only takes
$2.25 to ship the order. That sale returns $8.50
to the band, a much higher return than most bands receive
for their online merch.
What other benefits are there?
-Since the band decides what is sold on the website,
leftover tour merch can be sent to the store instead
of lying around until the next tour.
-Through a special
arrangement with Factory Merchandising, a band won't
have to put up any money to stock the online store. Factory
Merchandising will front all the money needed to stock
the store, and the band will be paid after the proceeds
pay for the initial order.
-By
grouping tour merch and store merch orders together into
a single print run, the higher quantities may earn better
quantity discounts for both.
-The merchandise web
page is fully supported by the fulfillment company.
They keep everything running smoothly and kept up to
date as instructed by the band.
-The
fulfillment company also offers full website design services,
if needed.
-Factory Merchandising has special
shipping arrangements that allow store merchandise (and
tour merch) to be sent at less than half the cost of
UPS.
How do we get started?
The complete info about the Merchsquad online
order fulfillment can be found at www.merchsquad.com .
You can also check out the backend programming capabilities
of these guys by going to www.squadstudios.com .
The
set-up process takes from 1-3 weeks, depending on how
quickly the info is provided to Merchsquad. Factory
Merchandising will handle the details and ask you for the
things we need. We can arrange to have all the merch
sent to them in one shipment if you provide us with items
we don't make (CDs, posters, etc).
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