SMOK cross-border e-commerce platform dealers investment management system

1. Dealer Investment Target

 

SMOK invites distributors on different cross-border e-commerce platformswith following conditions.

A. Have operating team on the e-commerce platform, especially the 3C electronic, small appliance store operations team;

B. The annual sales and order quantity can meet the requirements, especially the operating team with an annual shop sales of more than 10 million RMB.

C. The number of first orders and the number of single orders can meet the requirements. For details of order, please see Minimum order quantity requirements for each platform in Annex I.

 

2. SMOK Dealer Support Policy

 

SMOK promotes branding actively and manages all platforms, with following actions.

2.1 SMOK Supply Chain Guarantee

1Provide security of supply proactively ;

2 Provide supply chain and overseas warehouse support;

3 Provide after-sales and technical support.

2.2 SMOK Brand Promotion

1SMOK conducts marketing and promotion of the brand every year and participates in the exhibitions around the world;

2 Update theofficial website, release new products and brand activities;

3 Continuous brand exposure in major social media;

4 Operating social accounts of brand;

5 Operating brand APP, brand membership system.

2.3 SMOK Management in Cross-border E-commerce Platform Vendors

1 Participate in e-commerce brand exposure activities to increase brand rankings and influence;

2 Clean up fake products and unauthorized stores;

3 Each platform having operator connects with dealers of various platforms and actively responds to the needs of dealers on various platforms.

 

3. Dealer Assessment Mechanism

 

3.1 Basic Principles of the Assessment Mechanism

 

SMOK will control the number of distributors on each platform and implement the survival of the fittest. The specific measures are as follows:

SMOK will evaluate the assessment criteria of 3.2 and the overall situation of this platform on each quarter, and evaluate the dealers of each platform. The expiration of one year's authorization will be combined with the assessment of the situation to implement the survival of the fittest for dealers, dealers for the assessment of compliance continue to sign the next year's authorization(For details, please refer to 4 Branding Services Annuity) and give corresponding rewards and support; if dealers cannot achieve the goal, the service annuity will be deducted accordingly. If dealers operate in poor condition, the authorization will be canceled. Refer to the table below for details.

 

excellent

inferior

Return the annual annuity

Deduction of the corresponding annuity according to the assessment

Upgrade the dealership ranks and give the product a lower price

Give a higher price of product

Give after-sales support

Take back authorizations and clear out platform

Row order priority response


 

3.2 Dealer points system about specific management measures

 

For the distributors to implement a point management mechanism, the basis is divided into 100 points. The dealers will increase or deduct the corresponding points for the operation in the current year. In principle, the total points shall not exceed 100 points. At the end of the authorization period, the deposit is refunded by multiplying the annuity by the percentage of the remaining points.

For example, an Amazon customer will have an assessment score of 98 after one year. The annuities that will be returned are:

60,000*(98/100)=58,800

Specific assessment methods are as follows:

1. Matching degree: The monthly “Dealer Sales Statistics Form” is submitted on time, and the top 3 clients will plus 1 before the submission of each platform; failed to submit the deduction on time by 1 point/time, 2 points/times was not submitted; other SMOK rules were violated by 1 point/time.

2. Price control: SMOK will set the lowest price for each platform, lower than the lowest price if it is not reported, the first three is a warning.  then will deduct 1 point/time.

3. Make relevant requirements for the sales of each platform shop, and the annual sales volume is lower than the standard discretionary deduction;

 

4. Brand service annuity

 

4.1 Brand Service Annuity Collection Methods

Shops that sell SMOK products on cross-border e-commerce platforms must pay branded service annuities. Annuities are mainly used to ensure that dealers operate in accordance with the SMOK Dealer Management Measures to crack down on SMOK products with unknown origins on the platform, and to pay SMOK and consumers liquidated damages in accordance with relevant regulations when a business violates regulations. In principle, annuities can be returned, but they must meet the assessment criteria. For details, see 3.2. The brand service annuity varies according to the platform. For details, please refer to “Annex II Brand Service Annuity Charge Standard for Each Platform”.

 

4.2 Years of brand service annuity

The brand is signed on a year-by-year basis to use annuity. When this measure comes into effect, all stores are re-authorized within one month and open for investment. Authorized stores also need to repay the annuity and re-sign the agreement. Shops that fail to pay brand annuities will be deemed to have terminated the authorization relationship with SMOK. We will release the authorization and give a 3-month inventory clearance period. After 3 months, the shop will officially announce the cancellation of the store's authorization and will withdraw it from the platform.

 

5. Authorization process

 

    5.1 Backing Up Enterprise Information

SMOK requires distributors to provide corporate information and shop-related information, including but not limited to the following:

1 company name, company size and company qualification data;

2 Main platform, shop name, link, shop screenshot;

3 Store sales history;

5.2 Pending Approval

SMOK evaluates the company's situation and the platform specialist's replies to the audit result.

5.3 Brand Service Annuities Payment

Brand Service Annuities Payment should paid by one-time, the remaining annual fee or security deposit can be extended.

5.4 Signed an authorized distribution contract

After the signing of the contract, order can be place from our wholesale platform, using the cooperation method of shipping after receive the full payment of the goods.

 

Annex I   Minimum requirements for each platform

 

Platform

First minimum order requirement

Regular minimum order requirement

Amazon

Not less than $20,000 (or equivalent RMB)

Not less than $15,000 (or equivalent RMB)

eBay

Not less than $20,000 (or equivalent RMB)

Not less than $15,000 (or equivalent RMB) 

AliExpress

Not less than $20,000 (or equivalent RMB)

Not less than $15,000 (or equivalent RMB)

Alibaba

Not less than ¥100,000 (or equivalent USD)

Not less than ¥50,000 (or equivalent USD)

DHgate

Not less than ¥100,000 (or equivalent USD)

Not less than ¥50,000 (or equivalent USD)

 

Annex II   Each platform brand service annuity fees standard

 


Platform

Brand Service Annuities

Amazon

60,000/$10,000

eBay

30,000/$5,000

AliExpress

30,000/$5,000

Alibaba

60,000/$10,000

DHgate

30,000/$5,000



Authorized Store list

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