Negotiation is the lifeblood of business.
We spend long hours holed up in meetings at work. Without proper negotiation skills, we will always feel shortchanged or that our goals have not been achieved at the end of every meeting. Negotiations should often end in a mutually agreed conclusion.
Working in sales for an E-commerce store means that you need to be a good negotiator. Poor negotiation skills on your part will adversely affect the bottom line of your E-commerce business so if you are not prepared and do not make usage of specific tools to improve the growth of your business, negotiating won’t be turned out to be a successful process.
Here are a few tips to help you become a better business negotiator to help improve the sales of your online shop.
Gather all necessary market information:
This means that you need to have as much information as possible before the negotiations begin. Information on your product, competitors’ products and pricing and information that is beneficial to the other party. As you get ready, keep in mind that the person on the other end of the table is also planning and preparing.
With all the market information and competitor prices at your fingertips, you will be well prepared for your distributor’s meeting. This gives you the confidence to ask for better outcomes and thus improve your profit margin for your E-commerce business.
One of the biggest business negotiation assets is a way to know the prices of all your competitors in real-time. With an efficient software and tool, you can track prices and monitor the competition in real-time and keeping an eye on your competitor prices will help you build a strong case for your business with suppliers and potential customers.
The idea and result are to have the current prices of your competitors at your fingertips. You can then use them to negotiate better prices with your distributors. Better prices from your distributors will enable you to be the undisputed price leader for the products that you sell.
In a negotiation, it is as important to listen to the other party as it is to speak. When you listen, your counterpart will feel respected and the negotiation will be conducted amicably.
Representing an online brand means that you have to listen not only to your distributors but also to your competitors and customers. For online shops, customers can quickly compare the price of products.
A benefit of listening is that you can understand what the other party is looking for out of the negotiation. This helps you find a way to offer it, as you also get what you want.
When your distributors are agreeable to your suggestion, you are confident that your customers will find your E-commerce store has the best pricing terms for the products you offer.
Consider all aspects of your business:
Business negotiations are multi-faceted. Therefore, it is important to keep an open mind during these types of meetings. A successful negotiator will interrogate every aspect of the negotiation as it comes. Having done this, any outcome of the agreement will be acceptable to both parties.
As a representative of the sales department, there are lots of factors you need to consider. Sales are the lifeblood of all businesses. Proper negotiations with your distributor allow your business to grow quickly and attract financing and more customers.
Ask for what you want:
Come out boldly and ask for what you want in a business compromise. Allow your counterpart to also do the same. From this basis, you will now be negotiating on how to satisfy the different factors of the deal.
Be assertive in your asking and negotiate on the negotiable for your request to be honored. For example, if you want an extension on your credit period from your suppliers, ask for it and then discuss how long the extension will be.
Know your customer profile well. This will help you ask for better prices on your goods. Better prices at your online business will increase conversion rates. Which means improved sales and quicker growth.
Don’t be rigid:
In these types of discussions, ensure that for every position you cede, you get something in return. This is only possible if you are well prepared and have correct and timely information.
If you get a supplemental product for your E-commerce shop at a higher price, ask your distributor to lower the price on some of your major products.
As previously alluded to, negotiations should not end up with a winner and a loser but with a mutually agreed conclusion.
Take your time:
When you are not able to come to an amicable conclusion in one sitting, do not panic. It is important to take your time and mull over the discussion points that each of you put across during the negotiation.
Thinking over the matters discussed helps you to see areas that the sales department of your E-commerce shop can improve on.
Remember to keep a short timeline on a follow-up meeting to finalize the details of the negotiation.
In conclusion, in a negotiation, it is important that you have the essential tools to help you gain all the information you need in a timely manner. Aim high and ensure that the negotiation is a win-win to all parties involved!