How BestBuy.com is increasing their online presence & improve relationships with vendors

In the past few years, Best Buy has grown their online presence immensely. As a result, they have spent time and resources to improve their relationship with vendors of all sizes and specialties.

Best Buy’s Extending the Reach Program

When the retail giant decided to focus on internet sales, they launched a program called Extending the Reach, which was designed to “improve collaboration between vendors, carriers, and internal Best Buy business groups… (through) a consistent means of accessing and exchanging information.”

The program has been extremely successful at empowering both large and small vendors to leverage the BestBuy.com customer base in order to boost sales and increase revenue.

Interest in getting your products listed on BestBuy.com?  Here are some tips and information on the base requirements that Best Buy asks of all their vendors.

Get listed on BestBuy.com

Best Buy values honesty and strong business morals from their partners foremost; and require every vendor to meet their standards in both performance and ethics.  Once that is established through the application process, Best Buy will then assess your ability to perform and interact with their system in a few key measurements:

  • Electronic Data Interchange (EDI) – During the review process, Best Buy representatives will test your EDI system. If you do not have an EDI system setup, you will need to register with Global eXchange Services (GXS), their preferred partner for web-enabled EDI.
  • Electronic Funds Transfer (EFT) – Best buy has an in-house ePayment Solutions Program that all vendors must join in order to conduct business with them. Their representatives will assist you in this step once you get to this point of the application.
  • Item Induction – Global Data Synchronization (GDS) is the system they use for managing supply chain data around the world. You must join a certified data pool, complete the Best Buy Trading Partner Form, and request access to the vendor portal through the Vendor Security Request form.

Assuming you meet all these initial requirements you will then be asked to prove that you meet Best Buy’s strict insurance requirements.  In most cases, state-mandated minimum levels of coverage are insufficient, as the retailer wants to know that you have adequate insurance in order to cover nearly all potential liabilities. The exact level of coverage you will need will be determined by the size and scope of your relationship with Best Buy.

Best Buy also has extremely high performance standards. Since Best Buy insists that you register on the global data and tracking systems mentioned above, it is easy for them to track exactly how well your business is performing and whether you are meeting their expectations.

If you would like more information on how to sell your products one of our team members can walk you through the process.

How to get your home decor products listed on BestBuy.com

Many large box stores have had a tough time maintaining market shares with the influx of online eCommerce competitors. Circuit City started the trend in 2009 when they closed shop, and Radio Shack followed suit last year. Unlike those companies, Best Buy was able to thrive. Their web sales climbed 17 percent in 2015, fueling almost all of their growth. As they continue to focus on growing their online presence, suppliers like you need to take advantage of the opportunity and get your products listed on BestBuy.com.

If you want to sell your home decor products on BestBuy.com, there is a strict qualification process. Before you can qualify as a supplier your business must meet these basic requirements:

Insurance Requirements

The vendor insurance requirements for BestBuy.com can be much more stringent than state and federal law requires. The exact requirements will differ depending on the types of products you supply and your shipping methods.

Merchandising Requirements

There are also several merchandising requirements that Best Buy will demand you have in place in order to verify your eligibility:

  • Have a reliable EDI system. If you already have an Electronic Data Interchange (EDI) system in place, you must link it directly to Best Buy. They use Global eXchange Services (GXS) to check your process for invoicing, purchase orders, purchase order changes, and advance ship notice. If your system is not compatible with their requirements, Best Buy provides a web-based EDI system that you will need to join.
  • Enroll in their EFT program. Best Buy offers an ePayment Solutions Program that all vendors, regardless of size, must enroll in for electronic funds transfers (EFT).
  • Use the GDS System. The Global Data Synchronization (GDS) system manages supply chain transactions and Best Buy insists you take advantage of the system in order to keep costs low and operations reliable.

Basic Supplier Standards

As you can see from their merchandising requirements, Best Buy likes to have as much control over their suppliers as possible in order to ensure performance and quality standards are reached.

The same goes for their supplier standards:

  • Vendors must meet United States government standards for environmental compliance.
  • You also have to meet or exceed minimum financial reporting requirements and disclosures.
  • Your marketing approach and brand need to match the company’s mission statement and identity, all the way down to your logo.

The Best Buy supplier qualification process is extremely competitive, but it is an opportunity you can’t afford to miss. As the company continues to focus on growing their eCommerce business, sell your home decor products on BestBuy.com and your business will grow alongside them.

Stay tuned to eCommerce Trade for more insider tips and industry trends.