EMP™, our E-commerce Management Program, is a total soup-to-nuts service for operating your e-commerce business.
- Are you strong in B2B, but wanting to build your B2C market?
- Is e-commerce success elusive? Having trouble gaining sales traction online?
- Is your product unique or niche? Is your target market definable?
- Would you prefer to concentrate on creating new products and less time on selling?
If you answered “yes” to these questions, then EMP may be right for you.
We Take Care of Everything
EMP is a total program that manages everything needed to deliver increasing sales and profitability.
As you can see, EMP, the E-commerce Management Program, truly does handle all aspects of online commerce.
We Take All the E-commerce Management Risk
Our e-commerce management financial proposition is quite simple: you supply the product and we take care of everything else. We pay for everything, too. We invest in the technology, design, content and systems to delivery successful e-commerce results.
In return, we split the Gross Profit Margin. The percentage of split will be determined after we analyze your products and brand, and varies from client to client.
In other words, we take the gross sales each month and then write you a check for the cost of the items sold plus your share of the gross margin: the amount of gross profit earned between the retail price and the cost of the products. You’ll always make a profit, while we take the risk of investing in building your online business.
In this manner, we both (you and us) have a vested interest in profitability. While we have to be competitive online, we also want to squeeze every penny of profit from sales. You also have an incentive to keep your production costs down and, as we grow your sales, discover more economical ways to produce more products to sell.
Questions? Of course.
What commitments do I have to make to novusweb?
Very simple: if we agree on the financial split, we will ask for a one-year commitment to give us enough time to earn back our initial investments. After the first year, we go to a month-to-month arrangement with a 60-day cancellation notice.
What if I have fulfillment capabilities?
Some businesses may already have in-house fulfillment capabilities. If we determine your in-house shipping can truly handle B2C fulfillment and returns — and we can integrate order processing into your system — we’ll gladly work that into our arrangement.
Who pays for shipping?
We consider shipping a “zero-sum” part of EMP. By that, we mean we charge customers for shipping and retain all such revenue. We then pay for all shipping costs. In this manner, if we want to offer free or reduced shipping to customers, we are absorbing the loss from our share of the gross profit margin. On the other hand, if we can economize on shipping costs and still charge customers, we might earn some monies. However, we don’t regard shipping as a profit center. But, we also want the flexibility to ship in ways that will generate more sales — and that risk is on us.
How do we determine product cost?
You’ll let us know what your product costs are in determining the Gross Profit Margin. We’re not asking for in-depth or proprietary information behind your numbers, but the cost factor we will use should be your actual cost of goods, not your wholesale price. Your cost numbers should not include any profit margin to be fair. That said, the split percentage will be determined based on the cost figures you provide during our analysis.
Does novusweb protect confidentiality?
Yes! In fact, we will ask for a bi-lateral NDA when we begin working together. Just as you want protection for your intellectual property, so do we. While this page lists the scope and depth of EMP, we do not publicly share the means by which we achieve our success within all the various areas we manage. Likewise, you don’t want your competition to learn about your costs, production methods, new products, etc. It’s in both our interests to guard confidentiality.
What if we already have a website?
If you already have an e-commerce website, we can leverage it to absorb products and information into our platform. If your site is informational — and you want or need to retain the informational aspects — you can link “Shop” on your site to the new site we will build for selling your products. In either case, we do require that stores be built and operated by us as we deem most beneficial.
If we stop using novusweb after the first year, do we get the website?
Not by default. We are investing in the building and management of the e-commerce website. In addition, it will be intricately integrated into our back-office systems. If you do want to acquire some of the assets of the site, we’ll be happy to provide them, but for a nominal fee, depending on how much of the site you want to obtain.
What if sales don’t grow during the first year? Can we cancel the agreement?
First, we both have to have patience in building an online store. Initial growth may appear slow, but once our marketing efforts kick in, we should see accelerating growth. However, if sales don’t materialize — or if you can’t provide products in sufficient quantities — we may be the first ones to ask for a cancellation. It’s in no one’s benefit to continue down a path of diminishing returns. Our agreement does spell out termination processes.
Who is responsible for replenishing the fulfillment centers?
You are. Your responsibility is shipping products to one or more of our fulfillment centers. Since you’re shipping in bulk, your costs should be fairly low. In fact, our fulfillment partners can assist with shipping logistics and rates. You retain ownership of the inventory, too.