With the increase in online shopping, many of the big department stores are closing up the doors at some of their retail locations and growing their online presence and selection. Many of the big box stores are turning to a drop shipping business model to offer customers everything they want. Macy’s was one of the early adopters of the drop-shipping model: they use the practice to broaden their online assortments and sell items that would otherwise take up large amounts of space in stores and warehouses.
Dropshipping is an excellent practice that offers benefits for both parties. The department store can offer a wider selection without having to purchase merchandise in bulk, and the vendor gains access to a large pool of established customers. In this blog post, we have put together a guide with everything you need to know about dropshipping with Macy’s.
Macy’s Vendor Direct Program
In an effort to compete with the giant that is Amazon, Macy’s created a program that allows third-party sellers to fulfill orders and ship directly to customers. This program is called Vendor Direct, and it has allowed Macy’s to more than double its product selection. The Direct Vendor program is meant to appeal to online shoppers and draw customers to their stores.
Understand Your Clients
The first thing you will want to do before approaching Macy’s is to understand your target client. The individuals that are interested in your products should be in line with the typical Macy’s shopper. While Macy’s offers a wide range of products and therefore has a wide range of customers, you should make sure that your products fit their business model.
How To Sell On Macy’s?
The biggest challenge you will face with selling at Macy’s is establishing a relationship with a buyer and approaching them at the right time. There are a few ways you can attempt to get in contact with Macy’s buyers, and you should be aware that it might take trying all of the options before you get anywhere with them. Keep in mind that the competition for selling on Macy’s is high and that many sellers are attempting to do precisely what you are. Here you will find a few methods you can try to get in contact with Macy’s buyers.
Many companies are already using CommerceHub, but you may not know that they can potentially help you make connections with big box stores like Macy’s. CommerceHub has a program of its own called Retailer Connection Network where they help 12,000 retailers, brands, and suppliers get connected. The process for using CommerceHub to connect to retailers starts with creating a Supplier Profile for their no-cost program. Your profile will contain a vast amount of information to help determine if you would make a good fit for Macy’s. If your company is seen as a good fit, the team at CommerceHub will reach out and attempt to make the connection to a buyer. From there, if you and the buyer decide to move forward, you would begin the onboarding process.
Macy’s Diversity Program
Diversity is very important to Macy’s, they understand that their customer base is diverse, so they make an effort to include diversity in their vendors and suppliers. Certified minority- or women-owned enterprises based in the United States may qualify for the Macy’s, Inc. Supplier Diversity Program. You can reach out to Macy’s about being a part of this diversity program by emailing them at [email protected].
Connect With A Buyer Directly
Connecting with a buyer is a lot easier said than done. Reach out to Macy’s corporate office directly and ask to speak with a buyer over the category of your products. If you are not able to talk with the buyers on the phone, then ask for their names and email address. Write an email to the buyer, including information on your brand and its capabilities. Be sure also to include a product catalog showing off your selection of goods. Also, try using LinkedIn to find buyers and reach out to them through that platform.
Prepare Your Pitch
Before you reach out to Macy’s buyers, you should prepare your “pitch.” Put together the facts about your company, including your production volume, other big retailers you sell with, inventory practices, and connection capabilities.
Once you have established a relationship with a buyer and have decided to move forward with selling your products on the Macy’s website, you will move on to the onboarding process.
- The quality of your products must meet Macy’s standards
- Your fulfillment operations must be considered efficient and dependable
- CommerceHub Integration
- A US bank account is required so that Macy’s for payment
- UPCs that are GS1 certified
- Warehouse located in the US
- Certificate of Liability fulfilling the minimum coverage requirements
As a part of your selling relationship with Macy’s, your company will be required to send the following EDI business document types:
- Shipping Notices
- Purchase Order Acknowledgements
- Any other EDI documents required by Macy’s
Your company receives the following EDI business document types from Macy’s:
- Purchase Orders
- Functional Acknowledgements
- Any other EDI documents required by Macy’s
Macy’s uses third-party processing software to manage their orders and invoices with their vendors. Vendors connect with CommerceHub through one of the following connection options: Integrated (e.g., XML, EDI, and Delimited File) or Web Browser. Vendors then sign an agreement, pay a one-time integration fee, and complete the integration process.
How a Macy’s order is processed with CommerceHub:
- A customer places an order on the Macy’s website.
- Macy’s obtains credit authorization for the price of the order.
- Macy’s transmits the order to CommerceHub.
- The vendor receives the order through CommerceHub through the previously established connection.
- The vendor picks and fulfills the order with the Macy’s Branded packing slip and shipping label
- The vendor ships the order to the customer
- The order is closed in CommerceHub by the vendor who marks it as “Shipped” and provides a tracking number and invoices for the order.
- CommerceHub sends the change in order status and tracking number to Macy’s
- Macy’s provides the customer with an order update and the tracking number by email and then obtains payment for the processed order.
In addition to the topics we have covered here, there are many more steps and requirements involved with selling at Macy’s. Be sure to take the time to review their Vendor Standards Manual for a more detailed look into this process. In this manual you should find requirements for:
- Packing Slips
- Shipping Labels
- Products Images
- And Much more…
Right On Tech Support
Getting into Macy’s as a seller is not an easy thing to do, but with the right products and determination, it can be done! At Right On Tech, we have the know-how and experience to help you with your connection and a variety of other solutions to help you stay ahead of your competition on this and other selling platforms. Contact Us for more information.