Table of Contents Assessing Government Compliance Communicating Throughout the Supply Chain Getting the Most Out of Returns Customer Service At the Startup Launchpad conference last October, we had the opportunity to hear from Dana Madlem, vice president of sales at Rush Order, a third-party logistics provider that helps startups organize and fulfill orders destined for retailers and end consumers. Dana spoke to a room full of brilliant hardware startup founders to prepare them for the same global distribution journey that previous Rush Order customers, including GoPro, McAfee, and Roku, have successfully undertaken. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Assess Government Compliance The initial box you should check on your global distribution checklist should pertain to the legality of your international shipments. When your product crosses borders, consider duties, sales tax, and value-added taxes that may be required to enter the country. These additional expenses can add up, and in some cases, duties can amount to nearly 100% of the value of the product, as is the case in Brazil. With this in mind, consider whether there are any countries that will not be included in your international distribution plan, or at least not right away. Communicate throughout the supply chain When you distribute globally, your supply, manufacturing, logistics and retail partners can span multiple country levels, which inevitably complicates shipping schedules. You might produce your hardware in Shenzhen and store your product in a warehouse in Hong Kong, but plan to distribute it to sales channels in Asia, Europe, and the United States. Make sure there is adequate communication between all links in the chain to avoid product loss or damage or a serious blow to your reputation. For example, retailers will want shipping notifications to estimate when they can get your product on their shelves, as well as timely invoices. Get the most out of your returns Selling is not the same as selling. Sell-in refers to sales that put products on shelves, while sell-through refers to the percentage of the product that actually reached the end customer through the retailer. Eventually, startups will receive payment for the items they sell and stay with consumers, especially those that have stayed with customers beyond the typical 30-60 day return schedule after the initial purchase; therefore, we want to minimize the amount of customer returns in retail stores. Unfortunately, returns are inevitable, especially when selling in physical stores, and a startup that distributes globally needs a way to manage them. One way to handle returns is to create refurbished products with them and set them aside for warranty replacements or sell them at a discount. Customer Service To continue to make sales and earn loyal customers, especially when selling a "smart" device, you need to be an avenue for customers to receive technical support and order fulfillment within a reasonable period of time. Ideally, you should have a team to help manage these questions that may now be coming from all over the world. Customers are increasingly referring to online reviews when making purchasing decisions, making customer service a critical and ongoing focus for startups. Please note: this is just an example. Get a personalized document from us now..