How To Connect With A Fashion Buyer, Tip 4


Large Department Stores and large Specialty Retailers are using charge-backs as short term loans to sustain their businesses in a down economy. Be sure to follow all agreements and deliver, on time, to avoid becoming a victim to this game. Federal laws designed to protect debit and credit card holders are currently being manipulated by retailers in order to get unauthorized discounts from brands. This has become the modern business model to squeeze brands for as much margin as possible.

The general idea is that the retailer gives you so many specific desires concerning shipments and requirements on packaging and coding that essentially no one can truly deliver goods in a “contractually binding” manner. This is usually evident when they email your brand the vendor compliance manual. Each retailer has a different set of guidelines which further complicates matters. These compliance manuals are usually over 100 pages in total, each specifies exactly how the retailer wants the goods delivered by category and season. It also specifies rules and policies of the retailer, such as: an on-going eco friendly or animal friendly program, which may require your packaging, materials or factories to be in compliance with their standards for deliveries to be accepted without charge-backs or returns. It would be wise to be prepared for these charge-backs, and over price your goods by 10% to counteract the long term losses for your brand and business.