How can you negotiate to establish a successful e-commerce platform?

1 Identify your goals and interests

Before you start any negotiation, you need to have a clear idea of what you want to achieve and why. This will help you prioritize your needs and preferences, and communicate them clearly to the other party. For example, if you want to sell your products on a third-party platform, you need to know how much commission you are willing to pay, how much control you want over your branding and pricing, and what kind of support and services you expect from the platform.

2 Research the market and the other party

Another key step in preparing for a negotiation is to gather as much information as possible about the market and the other party. This will help you understand their goals, interests, needs, and constraints, as well as their strengths and weaknesses. For example, if you want to source your products from a supplier, you need to know their production capacity, quality standards, delivery terms, and pricing structure. You also need to know how they compare to other suppliers in the market, and what kind of value proposition they offer.

3 Build rapport and trust

Negotiation is not only about exchanging offers and counteroffers, but also about building a relationship with the other party. This can help you establish trust, credibility, and rapport, which can make the negotiation process smoother and more productive. For example, if you want to attract and retain customers on your e-commerce platform, you need to show them that you care about their needs, preferences, and feedback. You can do this by listening actively, asking open-ended questions, expressing empathy, and providing value-added services.

4 Explore options and alternatives

One of the main challenges of negotiation is to find a solution that satisfies both parties and creates value for both sides. This requires creativity and flexibility, as well as a willingness to explore different options and alternatives. For example, if you want to partner with another e-commerce platform to expand your reach and exposure, you need to consider different ways of collaborating, such as cross-selling, bundling, co-branding, or co-marketing. You also need to assess your best alternative to a negotiated agreement (BATNA), which is the most favorable option you have if the negotiation fails.

5 Make and evaluate offers

Once you have explored various options and alternatives, you need to make an offer that reflects your goals and interests, as well as the value you can provide to the other party. You also need to evaluate the offer you receive from the other party, and decide whether to accept it, reject it, or make a counteroffer. For example, if you want to negotiate a contract with a platform that hosts your e-commerce site, you need to make an offer that includes the terms and conditions of the service, such as the fee, the duration, the scope, and the termination clause. You also need to evaluate the offer you receive from the platform, and compare it to your BATNA and your reservation point, which is the minimum acceptable outcome you are willing to accept.

6 Close and implement the deal

The final step of negotiation is to close and implement the deal. This involves confirming the agreement, resolving any outstanding issues, and documenting the terms and conditions. It also involves following up, monitoring, and evaluating the performance and results of the deal, and addressing any problems or disputes that may arise. For example, if you have negotiated a deal with a customer to buy your products on your e-commerce platform, you need to confirm the order, process the payment, ship the products, and provide after-sales service. You also need to track the customer satisfaction, loyalty, and retention, and handle any complaints or returns.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?