- Situational analysis of the product, the market and its sales history
- Creating and posting listings on SMG’s Marketplace accounts
- Shipping product to SMG’s warehouse
- Wait for the sales to roll in
The first step is to put together a situational analysis. We want to identify what the product is, determine its market visibility, chronicle its sale history, and track its historical sales performance in the three main avenues of commerce: retail stores, online marketplaces, and direct-to-consumer sales. This step is critical because SMG has a vested interest in the future success of your product. In lieu of fees, we earn a percentage of sales revenue. This gives us the proverbial “skin in the game” and is the reason we don’t work with unknown or untested products.
Once the situational analysis is complete and both parties have agreed to move ahead, SMG uses its marketplace accounts to sell a client’s products across all the big online e-commerce sites. All product is shipped to a central warehouse in the Midwest. This product remains the property of the client. Assets needed to create product listings, such as art and content, also are delivered to SMG. SMG and the client then agree on which marketplaces will be used to sell the product, and at what price. Once an agreement is reached and all product arrives at the warehouse, the listing is created and goes live.
All associated costs, from marketplace fees to warehousing and shipping, are passed through, but they typically total less than one-third of the selling price – which is a far better deal for the seller than going the wholesale route and walking away with less than half the sales price.