As we all know, whether it’s life or business everything is covered by Insurance, just to save guard our life and business.
The insurance company mitigates our losses.
business must have a Transit Insurance, fire and theft insurance just to cover
the uncertainties of nature and accidents.
As the whole country is under lockdown due to attack of COVID-19, resulting in heightened chances of theft – just to save guard our interest and minimizing losses just by paying a little premium to the insurance company which will take care of our goods and shops if any miscreant attacks our office or shop.
insurance is much cheaper as compared to
losses which we would make without any insurance.
Cover of around Rs.50 Lacs we just need to pay the premium of Rs.2950/- which
is cheaper than the loss we would make without insurance.
So it is
advisable to buy insurance to save ourselves from unavoidable and unforeseen situations.
TRANSIT INSURANCE POLICY
insurance policy is an Open Marine
Policy which is customized as per the needs and demand of the industry:
We need to
mention the article type which we are dealing with, what would be the packing
of the product and what would be the mode of dispatch such as by Air, Rail,
Road, Sea, Cargo or Courier services, what would be the single carry per
invoice limit, is the return of the shipment is also included or not.
All the points
mentioned below have to be taken care of before finalizing the transit insurance:
1. the most
important point to be noted while taking the policy is which articles/ products
we are dealing with.
from which location ‘x’ to which location ’y’, for e.g. from anywhere in India
to anywhere in India.
Delivery from Warehouse ‘a’ to Warehouse ‘b’
4. What would be the mode of transport – sea, air, rail, road, courier or cargo services?
5. What would
be the type of packaging?
6. What would
be the single carry limit of each invoice?
7. What is
the Excess Limit, which varies from one insurance company to another? Excess
Clause is the limit which insurance company deducts while making the claim
settlement. – For e.g. Invoice Value is Rs. 8000 & Excess Clause value is
Rs. 2000 so the net settlement will be Rs.6000/-
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Branded Stock lots are excess / surplus lots of products offered by brands, liquidation stock wholesalers, traders and distributors. These products are usually old season’s stock liquidated in bulk quantities to 1 or 2 people.
For Example- A footwear shop owner sees an opportunity to buy in bulk branded shoes – 200 assorted pieces of Nike or Adidas or Puma. Suppliers offer these shoes to the footwear shop owner as a stock lot, at a discounted wholesale price to further sell it to its customers.
If the articles are from old season’s stock then the shop owner can buy the stock lot @ around 65- 75% of MRP discounted price – depending on brands, source, material quality and type of product- mix in the stock lot. If the stock is just 1 season or 5-6 months old then brands would bulk sell it at around 60% off on MRP. Taxes would be extra (GST @ 18% is charged if the article price is above Rs 1000).
It’s advisable that the shop owner understands the stock lot product- mix in terms of fast selling sizes and designs and then chooses to buy in bulk as per demand at his/ her shop.
In assorted stock lots articles/ products are found to have different
designs, type of products and sizes. Whereas, in set wise stock lots, same articles with same design are found but
in varying sizes with varying quantity ratios across sizes (like 1:1:2:2:1:1
for shoes sizes 6:7:8:9:10:11). If the stock lot is set wise chances are high
that they are not original as the running sizes and designs would have gotten
sold earlier; only exception to this being a case where designs across all
sizes are very old and hard to sell.
Fresh inventory stock vs. E- commerce liquidation stock
Fresh inventory stock lot is
sold by brands and their authorised distributors which comprise of new and
running season articles whereas, E- commerce liquidation stock is sold by
e-commerce owned sellers like Cloudtail (Amazon) and W S Retail (Flipkart)
which comprise of old season (2-3 seasons) articles.
Unsold stock vs. Return stock
Brand or E- commerce liquidation stock lot can be categorized further in two types – Unsold stock / dead stock comprise of those articles which the brand/ manufacturer or the e- commerce players like Amazon and Flipkart are unable to sell. Unsold stock is usually more than 2 years old. Return stock comprise of those articles which are ordered by customers but returned due to failure in payment (like COD), logistical issues or returned by customers. Some of the articles in Return stock can be found to be dirty/ damaged. Vendor sells the return stock at higher rates if he removes the dirty/ damaged pieces. Return stock comprise of articles which are ordered- running sizes and designs.
Genuine stock vs. Fake or First Copy stock
Genuine stock lot comprise
of original articles with brand bills whereas, Fake stock lot comprise of
copied (first copy), damaged and rejected stock produced and sold illegally.
Key Points to remember while buying stock lots:
– If you don’t find the brand bill then the products are not original.
– A brand or e- commerce liquidation stock lot comprises of original products only if they are old season’s stock (2-3 seasons old) and Assorted–
If you find latest products in liquidation stock which are new and running in brand showrooms then those products are fake/ duplicate. Remember it’s almost impossible to find original liquidation stock lot to be set wise.
– Factories or unorganized players cannot sell branded products (excess / surplus stock) with brand labels –
It’s illegal to sell and buy stock lots/ products from such unauthorized bodies selling products with brand tags. Export surplus can be legally sold only when their brand labels are removed.
– Original branded products/ stock lots can be sold only from those brands or their authorized distributors –
Factories selling excess or brand rejected stock with brand labels is illegal and there is a high chance that the products are not brand originals.
– Many unorganized wholesale players in marketplace sell fake products in the name of original bills –
For example, A wholesaler bought 10,000 pieces of a brand ‘x’ original products once. But later on he started bulk selling fake or duplicate products by showing the original bill of earlier bought 10,000 pieces; but not the actual bill of the duplicate articles sold.
– Make sure you buy stock lots from authorized sources only like the brands or their authorized distributors-
to avoid legal punishment and unethical and misled buying/ selling of products. Buy only from GST registered and reliable companies with proper authorization.
– E commerce liquidation Return stock lot comprise of genuine products only when it’s sourced from e- commerce authorized/ owned sellers-
Like Cloudtail (Amazon) or WS Retail (Flipkart) and so on; or through channels who are buying from Cloudtail or WS Retail. Return stock lot in such cases come packed in e- commerce brand labelled boxes with return slips. And Return stock lotdo not come set wise.
– E commerce liquidation Unsold stock lot will be from 2016- 17- 18 (if bought in 2020). And original products can be sourced only from Cloudtail (Amazon owned seller) or WS Retail (Flipkart owned seller).
Remember there are many unauthorized sellers online and offline claiming to sell original products which is illegal and buying from them brings in a lot of problems pertaining to legal action and penalty.
– It’s advisable not to buy in very large quantities of stock lots with mixed variety of articles which can lead to dead stock piling up in your showroom.
Try to buy in small quantities of stock lots which are fast selling in your shop.
– Make sure to distinguish between what is original and what is fake or duplicate.
Hello Shop owners/ Readers, let’s discuss how to find out that the Footwear purchased in bulk for our shop is a original or copy (first copy, second copy, etc all are COPY and illegal).
There are so many big players in the market who sell branded Footwear. Some sell with brand bill and some without because of the reason, purchased from an authenticated platform then only they can provide the brand bill. So, always buy from the Brand bill providers. Anyone claiming that articles are originals but cant give brand bill -remember, its an alarm. Something is wrong if you don’t get brand bill. Even with brand bills, frauds may happen (explained in this article towards the end)
Also there are different types of footwear stock lots include Assorted stocks and Set wise stocks:
1. Assorted means all the articles will be in different designs and different sizes. Whereas set wise means there will be all sizes available in every design, sometimes even in a ratio like 1:2:2:1 for size 7 8 9 10.
2. Set wise have high chances that they can be first copies because, if someone is creating copies then they will always manufacture repeated articles. Genuine stocks cant be set wise easily. Originals will usually come in assortments. No brand will liquidate latest designs, setwise, in the market at low rates. If someone is giving you NIKE ADIDAS 2019 or 2020 articles set wise, beware!
Other factors on which we can decide that the product is genuine or not those are:
1. If the boxes of the shoes are proper and not even scratched with new dates, like 2019 or 2020. There are chances that they can be duplicate products. The brand always sells there unsold stock or old stock which can never look that much fresh. So check them twice and get the assurance of originality. These articles will be liquidated by brands if those are slow-moving or non-moving . So at least 2017-18 or older articles that they will liquidate.
2. Always check for the ‘Article No’ which is given inside the tag of the shoe. That will always need to be unique and try searching it on google search. Found out the original product after searching, then the article may be genuine (still not sure 100%). If not then there is a problem with originality of the product. Check that different shoes have different tags inside and with the unique article number. If different articles have same code, then they are duplicates for sure.
3.Brand Bill – It is mandatory for shopkeepers to have brand bill & sell only original brand footwear, no first copy, no local copy. Selling copies can land up up in Jail. Always ensure to take the BRAND bill and check all the articles are genuine or not. (You will find a Case study in the end of the Article on Brand Bill). GST bill with brand name not mentioned is useless. GST bill means tax going to govt, but the brand not mentioned can still land you in jail.
4. Also, check the condition of the shoe that will also define that the product is generic or not. For e.g., the brand name is different and logo is different, wrong brand spelling or brand logo, pasting of the product is visible outside, the quality check was not properly done. That also will let you know that the product is a duplicate or an original.
If you own a shop then there are two factors on which your sales is governed – those are increasing footfalls and supplying genuine products regularly to satisfy the demands of the customers. So, if you only mistakenly get the duplicate products from supplier and start selling those to your customer then it will start decreasing you trust and footfall. They won’t be buying from you anymore.
For an example, check some pictures on this page and details Footwear Branded Stock lot Page Link. Here you can see that any set of 50 or 100 pcs, are all different and even the sizes are assorted. This along with things like brand bills, old season stock disclaimer tells us that stocks can be originals.
CASE STUDY on HOW YOU GET FOOLED by getting BRAND BILLS TOO – India has all jugads 🙂
In this case there is a Wholesaler who sells branded goods like Footwear, T-shirts, Denims, etc. He buys directly from brand, Lets suppose he buys 1000 quantity of Footwear now he is authorized to bill those 1000 pairs of footwear to shopkeepers. A shopkeeper(NAME: SHYAM) comes to wholesaler to buy 150 Pairs of footwear and shyam says I want the brand bill so, wholesaler agrees and gives him bill for 100 pairs. Do never get fooled by taking lesser Quantity bill because the remaining footwear he is giving to you are duplicates that is why the wholesaler is not giving actual bill so you can not claim the purchase afterwards. ALWAYS TAKE THE ACTUAL QUANTITY & ACTUAL PRICE BRAND BILL.
In another scenario, this wholesaler sold his original 1000
pairs along with a mixing with another 1000 pairs of copies. Now since only 10
shops asked for bill, he could give 10 shops X 100 pcs bills while in these
bills itself he has sold copies also to make more money.
For some wholesalers who are old in the business, they may have a brand bill of 1000 articles he traded last year and might still be selling copies by using reference of that old bill. So he would have sold 20000 pcs giving a brand bill, still using the reference of original bill. In case of any police raids on any of his shopkeeper clients, he would be planning to show that bill.But along with police in such brand raids for duplicates, brand executives also join and identify copies and then you are behind the bars as a wholesaler sold you copies on a fake brand bill. BEWARE, BUY ONLY FROM RELIABLE SOURCES AND WITH PROPER BRAND BILLS