This article deals with the process and details of SPACEGOATS's retail/trade billing process. The steps of this process and associated term explanations are described in detail to better understand the procedure.

Procedure

  1. Purchase of Goods: SPACEGOATS purchases the goods at a pre-agreed price.
  2. Sales: The goods are sold in Europe and the USA via Shopify and Amazon.
  3. Advertising Control: The customer retains control over advertising expenses and measures.
  4. Margin Calculation: SPACEGOATS discloses the margin calculation for the final selling price, which can be used to calculate the selling price to the end customer. Alternatively, an automatic, AI-supported pricing tool can be used.
  5. Payment: Upon sale of the goods, the selling price is paid out to the customer the following month.
  6. Unsold Goods: If the goods do not sell within the agreed period, SPACEGOATS transfers the selling price to the customer, less a deduction.
  7. Goods Request: In case of impending stock shortage, SPACEGOATS can automatically request new goods, or the customer takes over the delivery.

Term Explanations

TACOs: Customers can independently control their advertising costs and thus TACOs (total advertising costs in relation to sales). A higher TACOs rate is recommended, particularly in the NEM area, as the ranking advantages achieved through PPC can improve organic ranking.

Risk Margin: This indicator can be reduced, especially when costs are covered by flat rates. Customers can adjust this value as they see fit, taking into account costs such as return risks, efforts for lost units, etc. To reduce this, we need past customer data. If our margin of 4.9% does not provide sufficient coverage, the Risk Margin is used to offset the increased risk.

Payment Terms: Payments are made on the 4th and 18th of the following month after receipt of the selling price in the SPACEGOATS business account.

Pricing: Pricing can be done by SPACEGOATS using third-party software and is based on a margin of 4.9%, plus the Risk Margin.

Advertising Measures: Advertising measures are agreed by mutual consent and charged to the retailer as advertising costs. The financial resources used serve to increase brand awareness and market success. If a lower revenue than the agreed purchase price is achieved, for example, by reducing the selling price to end customers, the price reductions are billed as discounts and advertising measures on the service invoice.

Delivery and Invoicing: Deliveries to a SPACEGOATS warehouse are either according to SPACEGOATS specifications or in consultation with the dealer. Invoice data are recorded online and are essential for payouts. Deviations can lead to non-invoicing and, in the case of repeated violations, to fees.

Additional Logistic Effort: Special agreements result in increased logistic expenses for SPACEGOATS, which are billed to the dealer. A list can be provided to the dealer if needed.

Storage and Damage Cases: In case of damage or destruction of contract products during storage, SPACEGOATS commits to preserving the rights against the warehouse service provider. Any compensation will be paid out to the dealer.

Non-Sale of Goods: Goods that are not sold within the set period can be billed by SPACEGOATS with an expense compensation of 50-75% of the goods sales value.

Selling Prices: These should be coordinated with SPACEGOATS, as they form the basis for the selling price to the end customer. Advertising costs are billed as a service. A reduction in the selling price is possible, but must be agreed upon and is counted as advertising costs.