Agreement between stores and CloZer
The following is a description of the general agreement the cooperation between stores and the CloZer platform is based upon. You will also find commentary sections attached to further elaborate on certain issues.
GENERAL
Clozer provides a marketplace for your store, where garments, shoes and accessories can be sold. Basically, an online sales channel is made available for your store.
Customers will primarily purchase products through our app, which will be made available for download via the App Store or Google Play. In the app the products in close proximity will be displayed in a shopping feed with similarities to other shopping apps. Therefore, the selection will vary depending on the customer’s location.
In the first phase of our launch the customers will be able to purchase products through the app, but in the second phase we will expand our platform to use a webshop as well. On our website the selection of products presented to customers will be based on their postal code and not location radius as in the app.
comment: in recent times, sales through apps have exceeded web sales, which is the reason why our focus is on an app experience in the first phase.
THE STORE
This section describes the stores responsibilities.
New Order
The store will be informed of all new orders via the CloZer app. It is crucial, that the store has access to and checks the app notifications to stay up to date with orders. When an order has been placed, the store’s phone/device will receive an notification. Once the notification has been opened, the details of the order will be shown in the app. Alternatively, the order information and overview can be accessed in the section, ‘Orders’, in the app. The app is installable on both android and apple devices. The app can be downloaded through either the App Store or Google Play. It is also possible to install the app several times / on multiple devices to allow several employees to gain access. All registered devices will receive notifications from CloZer.
Delivery & Order fulfillments
All orders including delivery will be paid using CloZers payment gateway. Therefore, the store will not receive payment for orders directly by the customers.
In the case of a Click & Collect order it is expected of the store to have prepared the order for pickup within 30 minutes of the order being placed. If the store realizes that one or more products are unavailable then that orders should be cancelled immediately. We expect that you will strive to prevent this situation from occurring to avoid a negative user experience for the customer.
If the customer has placed an order that should be delivered then the order should be sent the same day (with the exception of holidays). The store will use their regular delivery company and provide the initial payment to the delivery service. The customer has already pre-paid their delivery through our app, which will be paid back to the store later. More information regarding this is available under ‘CloZer’, section ‘Delivery methods’.
If the customer selected express delivery (bike delivery service) it is expected, that the store prepares and packs the order within xxx minutes. The short notice is due to the arrival of the delivery service within x minutes - and the xxx minutes the delivery courier will be able to wait upon arrival at the store. Notice, that with this delivery method the store will be charged a fee, if the order is not ready in time (specified under section ‘Price and Additional Fees’). This fee is charged by the delivery service, not CloZer, in case of order preparation delays on behalf of the store.
Products
It is within the store’s responsibility to make sure, that the correct product information is entered and updated on the CloZer platform. Such information includes:
• product pictures
• product descriptions (category, style, brand, sizing, etc.)
• stock status for all sizes
• current product pricing
• (the above includes all variants or styles)
• opening hours and holidays (excluding public holidays which will be added automatically).
The products can either be imported directly from your webshop (via. the use of an API-key access) or manually created in the app. CloZer will help you to get started if you choose the manual process of uploading products. Contact us for further information.
Stock level
The store is responsible for updating the stock level of the products listed on the CloZer platform. If a webshop integration (via. API-key access) is used, the stock level will be automatically synchronized with the webshop - which makes it crucial, that the webshop’s stock level is correctly updated in the webshop.
If the store is not connected via. A webshop integration, the stock status of products sold on the platform can be updated in the CloZer app under ‘My Products’.
Comment: We are currently working on creating a new function called, “buffer stock”, which enables the store to choose when a product is listed on our platform. For instance, the buffer stock could be placed at 5 items, which would cause products with a stock status of under 5 items to be unavailable for purchase. By implementing this, we minimize the risk of selling products on the CloZer platform that has run out of stock in the store.
CloZer reserves the right to exclude stores, that continuously cancel orders due to incorrect updates of product stock levels.
Comment: We are aware of the difficulties involved in updating the stock status 100% of the time, but we advice to keep it updated as best as possible. If customers continuously have a negative user experience and complain about unavailable items, we may find it necessary to exclude the store from the CloZer platform. Before doing so, we will firstly contact you to attempt to find a suitable solution to ensure better stock status updates for your store. It’s in both CloZer’s and the store’s interest to ensure a great customer experience.
Returns
All purchases made through the CloZer sales channel are defined as e-commerce according to the Danish consumer council (https://raadgivning/rettigheder/fortrydelsesret-paa-nettet-her-er-dine-rettigheder). Because of this, all orders are covered by a 14-day return policy which all online purchases are bound by in Denmark by law. The customer is responsible for covering the delivery costs of returns. This is informed by CloZer prior to completing their purchase.
Reclamation
Cases of reclamation are handled by the normal rules of reclamation. Right of reclamation means, that customers have the right to file a complaint if there are flaws or any errors on their product. The store from which the product is bought is thereafter obliged to either repair or exchange the product or complete a full refund. In this case, the store is also obliged to cover the costs of return delivery as declared by law. In matters of reclamation, the customer is directed to contact the store directly.
Opening hours
It is of great importance, that the store continuously updates their opening hours in the CloZer app to ensure that products purchased through the platform are available for pickup via. Click&Collect or express delivery (bike delivery). It is also possible to contact CloZer’s customer service via hej@clozer.dk, if the store needs assistance with updating their opening hours. Failure to update the opening hours correctly could mean that the bike delivery service would show up at a closed store to pick up an order. This situation would be highly unfortunate.
CLOZER
Platform
CloZer provides the local fashion stores a platform which enables them to sell their products through an additional sales channel. Phase 1 consists of an app for both Apple and Android and later a location based website will be added to increase sales. The platform is driven by known and reliable systems, that ensures an expected uptime of nearly 100%.
The primary communication to the store regarding orders will be through the app. using notifications. These notifications are received when a purchase has been completed or an order should be prepared for pick-up or delivery. The app enables store owners/employees to view or edit products, prices, stock status, the store’s master data and to add employee access, accept/decline orders and much more.
Initial phase
It is possible for CloZer to import all of the products from a store’s webshop into the platform to make it easy. CloZer currently supports a wide range of webshop platforms and only need an API-key (which can be generated in your webshop) to facilitate the integration. The API-key grants CloZer access to read product relevant data, but not to edit any data. This access can at any point in time be blocked by the store owner through their own webshop. The integration enables CloZer to continuously update stock status to ensure, that CloZer does not list any sold out products.
If the store does not have a webshop, CloZer is able to import product pictures manually.
The third option is to use our app to upload product information manually. This includes; pictures, price, sizes, stock status and product descriptions.
Marketing
CloZer will market the store products locally via. various marketing channels such as Facebook, Google, Instagram etc. The extent of the marketing of the individual store will depend on many different parameters such as the size of the investment CloZer has been granted at that given point in time and the marketing budget.
Comment: A large part of the income generated through product sales will be channelled into the marketing budget, since CloZer is a marketplace enabled by sales.
Delivery Methods
CloZer provides 3 different delivery methods for the end users:
1. Click&Collect. The customer completes their purchase in the app and is informed where they can pick up their order. The store is notified of the Click&Collect order and will thereafter prepare the order for pickup as soon as possible.
2. Regular delivery. The customer purchases their order and delivery through the app. The store packs the order and ships it through their usual delivery company (f.i. Postnord, GLS, DAO, Bring etc.). With the chosen delivery method, the store pays their delivery company the shipment fee, which will be refunded by CloZer together with the order payout.
3. 1-hour delivery. The customer purchases their order incl. 1-hour delivery through the app. The store quickly prepares the order for pickup. A courier will arrive shortly thereafter within xxx minutes to pickup the order. This delivery method is more expensive than the others.
Comment: in the second delivery method (regular shipment), the store’s own delivery method is used. This is to avoid forcing different stores to agree to a delivery-method / shipment-company chosen by CloZer. The store is therefore able to freely choose a shipment company they prefer. Most likely the shop already has an active shipment agreement.
Payment terms
All payments for products and delivery are processed through CloZer regardless of delivery method. CloZer will continuously transfer payouts to the store within 1-2 weeks after a purchase has been made.
Comment: we are aware that liquidity is important for the stores, therefore we will strive to transfer payouts as soon as possible after purchases. The exact time of transfers will be known closer to our launch date, when the final agreement with our payment provider and bank has been signed. CloZer must receive the payable amount from the bank before we can execute a payout to the store. As of now, we do not have enough liquidity accessible to lend the payable amount to the store, before we receive it from the bank.
Pricing and fees
In the initial phase the stores are offered to join the platform free of charge. There are no establishment costs, monthly fees or binding period. We also offer a period free of charge post launch, which enables stores to try the platform without costs.
Comment: the future pricing after the free period will be disclosed by our sales manager, when she visits your store.
Fees:
The only fees applicable are those our delivery partner charges in case of the following; if an order is not ready for pickup in due time or if the order can’t be picked up at all.
Changes in pricing and conditions:
After the free period, the store will be offered to continue using the CloZer platform at the normal price. At that point in time, CloZer reserves the right to change pricing and conditions without further consent from the stores. In case of such changes, the stores will be notified by email 14 days prior.
Customer service
It will be possible to contact CloZer within regular opening hours, all business days and weekends (except holidays) between 9 am to 5 pm. Apart from our email, hej@clozer.dk, we also provide stores a phone number trough which our customer service is available. Our customer service will be helpful in finding solutions and answering any questions you might have.
Contact us as fast as possible, if issues arise regarding an order.
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If you need an answer to something we haven't covered here? Then please contact us on hej@clozer.dk and we will update this document.
