Selling to Target, Explained!
Get prepared to sell into Target stores
Some other important Target vendor requirements include:
- Make sure your suppliers are responsible and ethical sourcing partners.
- Be ready with EDI(Electronic Dada Interchange) access for receiving orders
- Ability to accept payments by use of Electronic Funds Transfer(EFT)
- Ability to drop ship certain products
What’s the best way to sell to Target stores?
Here are the top 3 ways to sell into Target Stores:
- Work with a product representative – Product representatives come in a few different forms. You can find Target brokers that specialize in selling to target, or manufacturer representatives that focus on a particular category of product. You will have to give up some margin and pay them a commission. Working with someone who already has a foot in the door is a great way to get started.
- Knock on the buyers’ door yourself – If you are confident that they will want your product you can always go direct. You will first have to start the application process to become a vendor. Once it is completed you can submit your product online through Target’s Supplier Intake Form. You can also search for Target buyers on LInkedIn and try contacting them directly to get their attention.
- Show them what they are missing – If you have a homerun product you can always get started on a few platforms that are much easier to get listings on. These include Amazon.com, walmart.com, overstock.com, etc. If you can demonstrate that your products have high demand then you have a good business case to bring to a target buyer.
Financing Your Target Purchase Orders
The good news is that you got a purchase order from Target. But the bad news is that you got a purchase order from Target! As you continue to work on building relationships with the buyers for Target Stores, you must be prepared. One of the biggest questions people ask about the process is What happens next?
There are financing programs available for wholesale companies when they receive their orders. You have options if your regular cashflow doesn’t support the purchase order you receive. The top financing programs available for wholesale distributors and manufactures are:
Business Line of Credit:
Wouldn’t it be nice to have a bucket of cash sitting on the sideline for when you need it? That’s sort of how a business line of credit works. You secure a business line of credit based on cashflow history and overall financial condition. Look into this option if you have been in business for more than 6 months and have consistent payments going into your bank account. If the purchase order is extra large, you may not qualify for enough cash from a credit line.
Purchase Order Financing:
Po funding works on a more transactional basis. The amount you can borrow depends on the size of the purchase order and cash needed to produce goods. With Target as a customer, you can potentially qualify for millions of dollars in funding. This is because po financing relies on the creditworthiness of your buyer. In this case, Target is one of the most financially secure retailers in the market today.
Accounts Receivable Factoring:
Have inventory on hand or a supplier that gives you terms? You can use finance receivables under a factoring program to help with your cashflow. Since ar factoring begins when you deliver and invoice Target, you can borrow 80-85% of your invoice amount. Now you no longer have to sit and wait for Target to pay their bills which can be up to 60 or even 90 days.
Let us know when you make it!
Consumers love shopping at Target. Target has done an incredible job building a reputation as a supplier of high quality affordable goods for their customers. They do this by sorting through the 1000s of supplier and vendor applications they receive to only engage with the best vendors. If you are looking to sell to Target, take your time and go through the above steps to help make sure you are successful.
Get Qualified For Funding Today
If you are ready to start delivering to big box retailers, apply today for financing. STAR can have you qualified same day, and the funding ready to go when needed. Star by clicking HERE to complete the application.