Own production: organization, accounting and sales. Accounting for sales of own-produced products Sales of own-produced products

Currently, the practice of opening retail stores by industrial organizations, which are their separate divisions and retail both the finished products of these organizations and purchased goods, has become quite widespread. V.V. talks about accounting and taxation of sales under a contract for retail trade of products of own production. Patrov and M.L. Pyatov, St. Petersburg State University.

Organizing the accounting of commodity transactions in your own stores raises a number of problems. These include: choosing a range of synthetic accounts to account for the movement of goods of own production in a store, establishing the accounting price of goods, qualifying for accounting and taxation purposes the facts of transfer of finished products to the store’s warehouse, calculating the amount of realized trade markup, etc.

The solution to these issues is hampered by the lack of direct regulatory requirements that determine the methodology for reflecting these transactions in accounting.

When reflecting transactions for the retail sale of finished products, first of all, the question arises of the qualification for accounting and taxation purposes of the facts of the transfer of finished products from the workshops and warehouses of the plant to the store. In this case, does the sale of goods take place, and, therefore, is the turnover of the transfer of valuables subject to VAT and other taxes on sales? Does a financial result arise already at this stage of the movement of goods, affecting the amount of taxable profit?

If a retail store is an independent legal entity in relation to the manufacturer (for example, a subsidiary of the plant), goods are sold under a purchase and sale agreement or transferred in pursuance of a commission agreement, mandate or agency agreement. In this case, the fact of transfer of goods must be reflected in the records of the parties to the transaction (the store and the manufacturing plant of the goods) in the manner established for recording the execution of the relevant contracts.

If the store is a structural subdivision of the manufacturing organization (and this is precisely the option we are considering), then the transfer of goods to the store’s warehouse in accordance with the current rules of civil and tax law cannot be qualified as a sale (sale) of them by the factory to the store, because such cannot have place between separate structural divisions of the same legal entity.

In this case, the norms of tax legislation directly refer us to the requirements of civil law. According to the general definition given by Article 39 of the Tax Code of the Russian Federation, the sale of goods for tax purposes is recognized as the fact of transfer of ownership of them to third parties on a reimbursable basis.

In accordance with the special definition of the concept of sales for VAT purposes, which is given in paragraph 1 of Art. 146 of the Tax Code of the Russian Federation, the sale of goods means the transfer of ownership of them to third parties, both on a paid and gratuitous basis. At the same time, according to paragraphs. 2 p. 1 art. 146 of the Tax Code of the Russian Federation, for VAT purposes, the transfer of goods for one’s own needs is recognized as a sale only if the costs of these goods are not deductible when calculating corporate income tax.

Consequently, according to the norms of the Tax Code of the Russian Federation, the transfer of goods to a retail outlet - a structural unit of an organization, as not implying the loss of the organization's ownership of these goods, is not their sale for tax purposes.

The turnover for the sale of these goods arises only after their retail sale to customers, i.e. the fact of transfer of ownership of goods to buyers.

According to the general requirements of the Instructions for using the chart of accounts, products transferred to the store should be reflected in a separate subaccount to account 43 “Finished products” (for example, “Finished products in the store”). The fact of transfer of products to the store, therefore, should be recorded in accounting by an entry in the debit of account 43 subaccount “Finished products in the store” and the credit of account 43 subaccount “Finished products in the warehouse”. However, this makes it impossible to account for it at sales prices, since account 42 “Trade margin”, according to the same Instructions for using the chart of accounts, is opened exclusively for account 41 “Goods”. Yes, and reflecting at sales prices finished products accounted for in one of the subaccounts to account 43 “Finished Products”, when their accounting in the remaining subaccounts for this account is carried out at cost, is incorrect, since one or another option for assessing what is reflected in any the accounting object's account should be applied to the account as a whole.

Moreover, quite often stores organized by production organizations sell both their own products and purchased goods, and the organization of accounting for the movement of goods only in total terms makes it difficult to write them off, provided that commodity transactions are reflected both in account 41 "Goods" and in account 43 " Finished products". Therefore, in our opinion, a more rational option seems to be when the accounting of products transferred to the retail store of a manufacturing organization is carried out on account 41 “Goods”.

This makes it possible to record goods in the store at sales prices using account 42 “Trade margin” to reflect the trade markup, which greatly facilitates the accounting of transactions for the receipt and sale of goods. As for the fact that the Instructions for using the chart of accounts do not contain entries in the standard correspondence scheme:

Debit 41 "Goods" Credit 43 "Finished products"

then, according to this regulatory document, “in the event of facts of economic activity arising, correspondence for which is not provided for in the standard scheme, the organization can supplement it, observing the uniform approaches established by this instruction.”

Based on the provisions considered, the following methodology for accounting for transactions for the retail sale of finished products can be proposed:

The fact of transfer of finished products to a retail store is reflected by an entry in the debit of account 41 “Goods” subaccount “Products of own production” and the credit of account 43 “Finished products” for the cost of valuables received by the store.

Reflection of the amount of VAT related to the sales value of goods purchased by the store should be done on the credit of account 42 “Trade margin” subaccount “Trade margin on products of own production”. In this case, an entry in the debit of account 41 “Goods” subaccount “Products of own production” in correspondence with account 42 “Trade margin” subaccount “Trade margin for products of own production” is made for the amount of the store’s trade markup and VAT on the retail price of goods.

Example

1,000 units were delivered to the store. products, cost per unit. which is 200 rubles, and the retail price is 260 rubles. (excluding VAT - 20%). The following entries will be made in accounting:

Debit 41 "Goods" subaccount "Products of own production" Credit 43 "Finished products" - 200,000 rubles. (200 rub. x 1000);
Debit 41 "Goods" subaccount "Products of own production" Credit 42 "Trade margin" subaccount "Trade margin for products of own production" - 60,000 rubles. [(260 rub. - 200 rub.) x 1000];
Debit 41 "Goods" subaccount "Products of own production" Credit 42 "Trade margin" subaccount "Trade margin for products of own production" - 52,000 rubles. (260 rub. x 1000 x 20%].

Questions about the need to use UTII by an organization located on the special tax system when selling products of its own production, as well as about the procedure for documenting such transactions are considered by the experts of the service Legal consulting GARANT Ekaterina Lazukova and Svetlana Myagkova.

The LLC applies the general taxation regime; it is planned to sell goods of its own production to an individual by bank transfer. Will this transaction be considered retail and, accordingly, will it entail the payment of UTII? If not, what documents are used to formalize the transaction? Is it necessary to draw up a delivery agreement, an invoice for payment, an invoice, or a delivery note?

First of all, it should immediately be pointed out that in the situation under consideration, the organization is not only not obliged to switch to UTII, but also does not have the right to do this, since the activity of selling goods of its own production is not subject to transfer to UTII. In turn, the procedure for documenting will depend on the type of agreement concluded with an individual.

Let us explain in more detail.

Application of the taxation system in the form of UTII

According to paragraph 1 of Art. 346.28 of the Tax Code of the Russian Federation, payers of UTII are organizations and individual entrepreneurs carrying out business activities subject to UTII on the territory of a constituent entity of the Russian Federation in which a single tax has been introduced.

In accordance with paragraph 1 of Art. 346.26 of the Tax Code of the Russian Federation, the taxation system in the form of UTII is established by the Tax Code of the Russian Federation, put into effect by regulatory legal acts of representative bodies of municipal districts, city districts, laws of federal cities of Moscow and St. Petersburg and is applied along with the general taxation regime and other taxation regimes provided for by the legislation of the Russian Federation about taxes and fees.

The taxation system in the form of UTII for certain types of activities can be applied to the types of business activities provided for in paragraph 2 of Art. 346.26 Tax Code of the Russian Federation. In particular, the taxation system in the form of UTII can be applied to the retail trade of goods.

The concept of retail trade is given in Art. 346.27 of the Tax Code of the Russian Federation, in accordance with this norm, retail trade is understood as business activity related to the sale of goods (including in cash, as well as using payment cards) on the basis of retail purchase and sale contracts. At the same time, this type of entrepreneurial activity does not include, in particular, the sale of products of one’s own production (manufacturing).

Thus, the activity of selling own-produced products, in the context of applying UTII, is not retail trade. It does not matter to whom and for what purposes the goods are sold. Accordingly, the organization cannot apply UTII in relation to such activities.

In addition, on January 1, 2013, a new version of clause 1 of Art. 346.28 of the Tax Code of the Russian Federation (Federal Law of June 25, 2012 N 94-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation”).

From January 1, 2013, paragraph 1 of Art. 346.28 of the Tax Code of the Russian Federation provides that organizations and individual entrepreneurs switch to paying a single tax voluntarily.

Thus, since 2013, the mandatory procedure for switching to the taxation system in the form of UTII has been abolished. Taxpayers have the right to independently choose the taxation regime for their business activities: the general taxation system, the simplified tax system or the UTII (letter from the Ministry of Finance of Russia dated November 6, 2012 N 03-11-06/3/75, dated August 13, 2012 N 03-11-06/3/59 , dated 06/01/2012 N 03-11-11/173).

That is, even if the activities carried out by the organization on the basis of the norms of Chapter. 26.3 of the Tax Code of the Russian Federation falls under the types of activities the implementation of which may be subject to UTII, an organization in relation to such activities has the right to either apply UTII or keep records within the framework of the STS (STS, if there are appropriate rights to apply this taxation system).

In the situation under consideration, the organization applies the DOS; therefore, in the case of carrying out activities that fall under UTII, the organization has the right to independently decide whether to apply the UTII or the DOS.

Please note that from the cumulative application of the provisions of Art. 346.27 of the Tax Code of the Russian Federation (definition of retail trade) and Art. 492 of the Civil Code of the Russian Federation, it follows that retail trade for the purposes of Chapter 26.3 of the Tax Code of the Russian Federation includes entrepreneurial activities related to the sale of goods both for cash and for non-cash payments under retail purchase and sale agreements, regardless of what category of buyers (individuals or legal entities ) these goods are sold (letters of the Ministry of Finance of Russia dated 04/05/2013 N 03-11-06/3/11238, dated 04/04/2013 N 03-11-11/137, dated 03/18/2013 N 03-11-11/107). That is, as part of activities falling under UTII, an organization can sell goods to both individuals and legal entities and receive payment for them in any form. Only the final purpose of using the sold product is important: for personal needs or for business activities (letters of the Ministry of Finance of Russia dated 08.08.2012 N 03-11-11/229, dated 05.21.2012 N 03-11-11/165, dated 05.05. 2012 N 03-11-11/144).

Documenting

The procedure for documenting the transaction in question will depend on the agreement under which the goods are sold to an individual: under a retail purchase and sale agreement or under a supply agreement.

In accordance with Art. 506 of the Civil Code of the Russian Federation, under a supply agreement, the supplier-seller undertakes to transfer, within a specified period or time frame, the goods produced or purchased by him to the buyer for use in business activities or for other purposes not related to personal, family, home and other similar use.

According to Art. 492 of the Civil Code of the Russian Federation, under a retail purchase and sale agreement, a seller engaged in business activities of selling goods at retail undertakes to transfer to the buyer goods intended for personal, family, home or other use not related to business activities.

Thus, the main difference between the sale of goods under a retail purchase and sale agreement and a supply agreement is the ultimate purpose of using the goods purchased by the buyer: for personal use or for use in business activities. Please note that current legislation does not oblige the seller to control the intended use of the goods purchased from him.

The organization must make its own decision about what kind of agreement will be concluded in this case.

In this case, it is necessary to take into account the provisions of Art. 493 of the Civil Code of the Russian Federation, according to which, unless otherwise provided by law or agreement, a retail purchase and sale agreement is considered concluded from the moment the seller issues a cash receipt or sales receipt or other similar document confirming payment for the goods to the buyer.

Thus, when carrying out activities under a retail purchase and sale agreement, the issuance of any documents to the buyer other than a cash register receipt (another similar document) is not provided. However, there is no prohibition on issuing other documents to the buyer (invoice, delivery note, etc.).

To control the timely and complete reflection of data on the movement of goods during retail trade, any independently developed form of consignment note (or other similar document) can be used, provided that such form meets the requirements for primary documents (Part 2 of Article 9 Federal Law of December 6, 2011 N 402-FZ “On Accounting” (hereinafter referred to as Law N 402-FZ)).

As for the wholesale supply agreement, the sale of goods under such an agreement is drawn up with a consignment note drawn up in the TORG-12 form, or in another independently developed form indicating the mandatory details (Part 2 of Article 9 of Law No. 402-FZ). When concluding a wholesale supply agreement, a second copy of the invoice (another document confirming shipment) is transferred to the buyer.

Regarding the preparation of the invoice, we note the following. In accordance with paragraph 1 of Art. 169 of the Tax Code of the Russian Federation, an invoice is a document that serves as the basis for the buyer to accept for deduction the amounts of value added tax (VAT) presented by the seller of goods (works, services), property rights.

An individual, in accordance with paragraph 1 of Art. 143 of the Tax Code of the Russian Federation, is not a VAT payer, that is, he does not need an invoice issued by the seller.

At the same time, according to the norm of the Tax Code of the Russian Federation (clause 3 of Article 169 of the Tax Code of the Russian Federation), taxpayers are required to draw up invoices, as well as keep logs of received and issued invoices, purchase books and sales books when performing transactions for the sale of goods (works). , services) recognized as subject to VAT.

According to the provisions of paragraph 3 of Art. 168 of the Tax Code of the Russian Federation, when selling goods (work, services), as well as upon receiving amounts of payment, partial payment on account of upcoming deliveries of goods (performance of work, provision of services), the corresponding invoices are issued no later than five calendar days counting from the day of shipment of the goods (performance works, provision of services) or from the date of receipt of payment amounts, partial payment on account of upcoming deliveries of goods (performance of work, provision of services), transfer of property rights.

Moreover, in accordance with paragraph 7 of Art. 168 of the Tax Code of the Russian Federation are not required to issue invoices when selling goods for cash to organizations and individual entrepreneurs in retail trade and public catering, as well as those performing work and providing paid services directly to the population. In this case, the requirements for preparing payment documents and issuing invoices are considered fulfilled if the seller issues the buyer a cash receipt or other document of the established form.

From the above it follows that when carrying out retail trade, invoices may not be issued only for cash payments.

Thus, in the case under consideration, the organization, when receiving payment from an individual by bank transfer, must issue an invoice and register it in the sales book. In this case, the organization has the right not to include an invoice in the package of documents presented to an individual when selling goods. At the same time, the legislation does not contain a ban on issuing an invoice to an individual when he purchases goods by bank transfer.

The texts of the documents mentioned in the experts’ response can be found in the legal reference system

Knitted clothing items are still relevant. After all, you can’t imagine winter without warm hats and soft sweaters. That is why many novice businessmen are interested in questions about how profitable the production of knitted products is. In fact, such an enterprise can really bring in good income, but only with the right approach.

How profitable can the production of knitted products be?

Probably every person has at least one knitted item in their wardrobe, not to mention various decorative elements and interior items. That is why the production of knitted products can become a truly profitable business.

But if you are going to open a small store, shop or studio, it is worth understanding some of the nuances on which further work will depend.

Of course, first you should decide whether you will sell hand-knitted items or purchase special equipment. Both of these options have some advantages and disadvantages.

If you're a jack of all trades and can knit anything, you've probably thought about selling your creations. There are advantages here - you don’t need bulky and expensive equipment, as well as a large room, since you can knit even at home. On the other hand, the process will be slow, which will affect income.

Special knitting machines and other equipment, of course, will cost a tidy sum. But with their help you can make things much faster. Many people started out by hand knitting, but as demand for their products increased, they switched to machine-made items. In any case, the right knitting business plan depends on how exactly you intend to create the product.

Required package of official documents

Fortunately, to open your own store you will not need many official papers and permits. First of all, it is worth registering with the tax service - preferably as an individual entrepreneur, as this guarantees simpler bookkeeping.

If in the foreseeable future you are going to cooperate with large companies, expand your business by opening new points, or attract partners, then it is better to create a limited liability company - this scheme also has a number of advantages.

Depending on what equipment and materials will be used and where your shop is located, you may need a permit from the fire and safety departments. For the production of children's clothing, some additional certificates are required.

What is profitable to knit for sale?

Naturally, your product range will largely determine the success of your business. Therefore, first you should decide what kind of products you decide to produce.

After all, the production of knitted products can become profitable only with the right approach.

You can produce knitted outerwear, such as jackets, coats, etc. Sweaters, pullovers, and knitted dresses are very popular among fashionistas.

And, of course, you shouldn’t forget about the necessary wardrobe items in winter - there is hardly at least one person who can do without a hat, scarf, mittens, warm socks, etc. in cold weather.

When compiling an assortment, pay attention to the fact that each product requires a certain decor, since not only the quality of the product, but also the appearance is important for buyers. After all, for example, scarves today are not only a piece of clothing, but also a fashion accessory, so follow new fashion trends, but do not forget about the good old classics.

It is believed that the sale of knitted products is a seasonal business, because in the summer people do not need warm clothes. In order to protect your enterprise from downtime, consider making clothes from fine yarn and threads. For example, knitted lightweight T-shirts and elegant openwork dresses will certainly be no less successful than hats and sweaters.

In addition, you can create unique accessories, such as knitted handbags, headbands, cases for mobile phones, etc. Interior items, such as curtains, bedspreads, tablecloths, decorative pillowcases, etc., are also popular.

Renting premises and creating a studio

In this case, the choice of premises depends on how large your production will be and how much equipment you intend to purchase. You can rent a room in the city center or in a large residential area - in any case, your good reputation and a skillfully conducted advertising campaign will create a stable flow of clients.

You can separately open a store selling goods or sell them right here, in your own studio. In this case, it is advisable to set aside a separate room for the store and fitting - here create a cozy and friendly atmosphere for future clients.

For example, decorate the walls of the room with photographs of models in knitted clothes, place several mannequins with finished products, create a small fitting room with a mirror. If you are going to make goods to order, then, of course, this is where you will discuss the features of their models with clients, take measurements, and try them on.

What equipment will you need?

If you are going to knit things by hand, then you do not need special equipment - knitting needles and an overlocker will be quite enough. If you are going to open a large production, you will need knitting machines - when purchasing, remember that each such machine is designed to work with one or another type of yarn.

Some experts also recommend purchasing buttonhole and lockstitch machines, and a machine for chain stitches - this will make the work much easier. In addition, you will need comfortable work surfaces, so buy tables for steaming, cutting, etc. Don't forget about shelving, bedside tables, cabinets and other pieces of furniture that are designed to store consumables and finished products.

Many enterprises sell their own products through structural divisions. How to reflect this in accounting? Does such a sale relate to retail trade and is it necessary to pay UTII? How to distribute expenses between two types of activities if, in addition to your own, purchased goods are also sold? The answers to these questions are in our article.

About Ladozhsky Understanding taxation

Let's say a manufacturing company sells finished products through its own store to end consumers. Of course, such sales fall under the concept of retail trade (Article 492 of the Civil Code of the Russian Federation). But does this activity need to be transferred to UTII? No, since the sale of products of own production (manufacturing) is not subject to Chapter 26.3 of the Tax Code of the Russian Federation. This is noted in section 346.27 of the main tax document.

Thus, this activity is taxed on a general basis or, if the established requirements are met, it can be transferred to a “simplified tax”.

We arrange the transfer to the department

The transfer of manufactured products from the warehouse to the structural unit where they will be sold is issued with an invoice for internal movement (form No. TORG-13). It is drawn up in two copies by the financially responsible person of the department handing over inventory items. The first serves as the basis for writing off products in the warehouse. The second is for the posting of valuables in the receiving department. The completed document is signed by the deliverer and the recipient and submitted to the accounting department to record the movement of inventory items.

Accounting

Accounting for the movement of finished products in departments engaged in trading activities is carried out in account 43 of the same name in a separate sub-account “Finished products in a non-trading organization”. This is provided for in paragraph 219 of the Methodological Guidelines for Accounting for Inventories (approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). The transfer of products from the main activity to the trading division is accounted for in account 43 as internal movement.

Sales are reflected in account 90 “Sales” in the generally established manner, as in operations for the sale of finished products from a warehouse.

Only in this case the subaccount “Finished products in a non-trading organization” of account 43 is credited.

Let's look at an example of how to reflect in accounting transactions involving the sale of own products by a trading division of an organization.

Example 1

The company Aurora LLC sells its own products in its store. The cost of finished products is 100,000 rubles, and the selling price is 177,000 rubles. The accountant of Aurora LLC will reflect operations on the movement of finished products as follows:

Debit 43 subaccount “Finished products in warehouse” Credit 20
– 100,000 rub. – products are received into the warehouse;

Debit 43 subaccount “Finished products in a non-trading organization” Credit 43 subaccount “Finished products in warehouse”
– 100,000 rub. – finished products were transferred from the warehouse to the sales division;

Debit 62 Credit 90
– 177,000 rub. – income from retail sales is reflected;

Debit 90 Credit 43 subaccount “Finished products in a non-trading organization”
– 100,000 rub. – the cost of finished products is written off;

Debit 90 Credit 68
– 27,000 rub. – VAT is charged;

Debit 90 Credit 99
– 50,000 rub. (177,000 – 100,000 – 27,000) – the financial result is written off at the end of the reporting month.

If purchased products are also sold

In this case, this type of activity falls under the concept of “retail trade”, provided for in Article 346.27 of the Tax Code of the Russian Federation. This means that a taxation system in the form of a single tax on imputed income can be applied. But only if such activities are transferred to UTII in the region where they are carried out. In addition, the area of ​​the sales area should not exceed 150 square meters. m.

Please note: if, in addition to your own, purchased products are sold, a combination of two taxation regimes is inevitable. This means that it is necessary to ensure separate accounting of two types of activities (clause 7 of Article 346.26 of the Tax Code of the Russian Federation).

Let’s say an enterprise combines the general regime and imputation. For profit tax purposes, income and expenses related to UTII are not taken into account (clause 9 of Article 274 of the Tax Code of the Russian Federation). Accordingly, separate accounting of income and expenses is necessary. What if expenses cannot be shared? Then they are determined in proportion to the share of the organization’s income from “imputed” activities in the total income of the enterprise. Let's look at this situation using an example.

Example 2

The total income of the enterprise amounted to 1,000,000 rubles, including income from activities subject to UTII - 200,000 rubles. General business expenses that cannot be attributed to any one taxation regime - 300,000 rubles.

It is necessary to make a proportion:
(RUB 200,000 : RUB 1,000,000) x RUB 300,000 = 60,000 rub.

Thus, expenses for activities subject to UTII must include 60,000 rubles.

K1 coefficient in 2007

When calculating UTII, the amount of basic yield must be multiplied by the deflator coefficient K1. This is stated in paragraph 4 of Article 346.29 of the Tax Code of the Russian Federation.

In 2007, this coefficient was set at 1.096 (letter of the Ministry of Finance of Russia dated May 29, 2007 No. 03-11-02/151).

True, financiers previously insisted on using K1 in the amount of 1.241 (letter dated March 2, 2007 No. 03-11-02/62). Those who took advantage of these clarifications and applied this coefficient in the first quarter of 2007 now need to recalculate. To do this, you must submit an updated tax return for the first quarter of 2007. As a result, an overpaid amount will be revealed, which, upon application, can be used either to pay tax in the following tax periods, or returned to a bank account according to the rules established by Article 78 of the Tax Code of the Russian Federation.

Hello!

We continue to publish useful tips for those who are at the beginning of the journey of creating and developing a successful online store. In previous publications we talked about how to find “your” product (and), what are its features?, your business idea and .

Today we will talk about what you need to consider if you decide to sell your own products online

Own goods and services

The Internet has opened up a whole new world for manufacturers: selling products has become much easier and faster. But there are a number of nuances here.

There are undoubted advantages to selling your own product: you have full control over your brand and its development, you have a chance to occupy a free niche in the market, adjust the product taking into account customer requests, and so on. But in addition to organizing the trading process itself, you will have to invest time and effort in the production itself.

That’s why you definitely need to think ahead about how you will scale your business, how your product line will grow and change, what challenges you may encounter in the future, and what it will take to remain competitive and offer something new to your customers.

Handmade goods store Plushkin.club

What should be your first steps in selling online?

1. Evaluate the initial data. Where will you get the raw materials (depending on the type of your business, this could be wholesalers or retail, friends, or even a flea market). You need to clearly identify suppliers and calculate all costs.
2. Determine how you will deliver orders: will you choose transport companies or choose Russian Post? Will you send the packages yourself or spend money on couriers and delivery services? Shipping is one of the key aspects of selling products online.
3. Think about the packaging of the product: how reliable it is, how it will affect the overall cost, and whether it will withstand transportation.
4. Fully calculate the production process: how long it will take to produce one unit of goods, how much you can do in a day, in a week, in a month. Will you work to order or intend to keep a stock of goods in order to promptly send them to customers? Document absolutely everything, from production costs to the amount of time spent.
5. Before selling a product in an online store, think about where you will store the product. Even if you have spare space in your home, you'll probably have to look for something larger as you scale your business. Explore alternatives: how much does it cost to rent suitable premises, how much will logistics services cost from a 3PL (Third Party Logistics) provider.
6. Timing plays a big role in selling products online. Your website should clearly state how long it will take for the product to be manufactured and delivered to the buyer after payment for the order. You can place this information in the product description, as well as duplicate it in transaction confirmation emails. Be honest, make the process as transparent as possible, meet deadlines, and then customers will trust you.

Working with a manufacturer or wholesaler

This option involves you finding a partner to develop, produce and sell your product. This is a great option if you don't have the opportunity or don't want to do it yourself. Or you doubt that you can handle scaling your business on your own, and therefore are ready to work in collaboration with a larger manufacturer or wholesaler who will handle sales.

Online store of the Miratorg holding, which unites several manufacturers

However, the investment is likely to be more significant. And you will also have to be responsible for the brand and quality of the product to customers.

What points should you pay attention to before you start selling a new product?

1. You can establish partnerships with an already successfully operating company, or find an “unpromoted” manufacturer that meets all your requirements. In any case, finding a partner can take quite a long time, so prepare for this in advance.
2. Make sure that your partner is in compliance with the law and has all the necessary documents (licenses, permits). Seek recommendations from those who have already worked with this manufacturer or wholesaler. It's a good sign if the company you're researching also asks you for the same information to prove your business is legitimate.
3. Assess your capabilities and partnership prospects:
   - What will be the final cost of the product, taking into account outsourced production, delivery and potential hidden fees?
   - How quickly can the partner ship the goods?
   - How is delivery and inventory management organized in the company? Is this included in the price of the product or is it an additional service? Will you control the branding?
   - Study the contract: is there room for maneuver in it, is it possible to make adjustments that your business needs? Can the conditions be called strict? What exactly are you risking? -How is communication structured in the partner company? How often will you be provided with up-to-date information about changes, innovations, and discounts made to the product?
   - What are the minimum order quantities?
   

1. Be sure to study a sample of the product before signing the contract. Make sure it meets your expectations. Manufacturers typically charge a fee for sending the sample, but you can negotiate an option where payment will be made if the contract is signed.

So, weigh all your options and get started! Remember: in the worst case scenario, if nothing works out, you can choose a different direction and move on. Selling in an online store is not as difficult as it seems!

Share your experience in the comments!
Prepared by Victoria Chernysheva

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