Mode paiement

For fashion brands, the European and United States markets are strategically very important. But there are some risks when it comes to payments, especially with department stores and e-commerce sites. Anke Glaser, General Manager of Webhelp Payment Services for Central Europe, offers some advice.

1. Fashion brands should make the most of the momentum driven by departments stores and e-commerce sites

Over the last 2 or 3 years – and especially since the health crisis – online sales have really flourished in the fashion industry, both in Europe and in the United States. This growth is mainly due to department stores, which already have a digital strategy, and e-commerce platforms.
This trend is explained by companies investing more and more in digital technology generally – in England, spending on websites and online sales platforms went up by 30% in one year. In the United States, department stores can account for up to 70% of suppliers’ turnover. We can also see this trend in Spain where the leading Spanish department store has made its digital development a major focus in its development strategy.
We therefore recommend taking full advantage of this momentum, driven by departments stores and e-commerce sites, because we think it’s one that is going to last!
However, while digital strategies are undeniably seeing a surge, we remain convinced that the physical component is still vital, and that the crisis will lead to an offering that combines human and digital solutions.

2. Protect yourself against the problem of deductions

Brands have to comply with the conditions imposed by department stores and e-commerce platforms, which generally have very strict rules, at the risk of having to deal with chargebacks. In practice, whichever country you’re in, department stores and platforms rarely make a payment for just one invoice. Usually, they send us a payment advice: a document summarising all the invoices to be paid. Added to these are debit notes or chargebacks that are deducted from the payments. For a brand, it is important to be aware that these practices, which can be for many different reasons, are widespread.
Webhelp Payment Services manages debit notes directly for department stores and platforms. We check them, as agreed with the brand, and if the deductions are not totally justified, we dispute them with the department store or the platform. Our regular contact with the stores and platforms means that we can speed up the processes and so resolve any disputes faster.
Every year, this work by our experts, dedicated exclusively to managing these key accounts, helps our clients’ brands recover substantial amounts of money, as well as giving them a clear overview of the buyer’s current situation.
The benefit: if the Order to Cash process is under control, those involved in distribution generally pay on time.

3. Know how to manage the complexity of accounting documents for department stores and e-commerce platforms and avoid mistakes

Each season, brands receive documents with a lot of items to reconcile, from department stores and platforms. This involves a considerable amount of work for their accountants!
We have developed a specific reconciliation and comparison tool for documents that come from department stores and platforms. It makes the accounts much easier to understand, and means we can analyse the source of chargebacks.
Our dedicated customer platform allows clients to find all the information and all the payments in one place. It is here, for example, that any deductions will be clearly shown. This document provides a good basis for the interaction between us, the brand, and the department store or e-commerce platform.

4. Digitise your data exchanges

The relationship between department stores, platforms, and sellers is also going digital. Implementing this digital process is really useful when it comes to optimising your cash flow with these different stakeholders. Indeed, in addition to the speed of transmission via EDI, it also means that you can check to make sure that invoices have been received, and act promptly if the invoice is rejected or incomplete. This means we can reduce delays to invoice payments, but also lots of chargebacks that might not be due.
We are currently working on setting up EDI with the many department stores and e-platforms so that we can offer our clients simple, unique access, whilst also relieving them of the technical work specific to each buyer. Why not take advantage of it?

 

With 35 years of experience in fashion and luxury, Webhelp Payment Services can be both a personal advisor and a facilitator, not only for department stores and e-commerce platforms, but also for retail distribution. We are currently working with 400 ready-to-wear brands with a network of 35,000 stores in Europe and the United States.

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