How commission trading works
To carry out commission trading you do not need to obtain a special permit or license. The procedure for its implementation is largely determined by the commission agreement. But keep in mind that if special rules are established for regular trading of the goods that you are going to sell (availability of a license, time or place of sale, etc.), then they must also be observed for commission trading. In addition, there may be restrictions or rules specifically on commission trading in relation to certain goods or persons. Also keep in mind that if the principal or buyer is a consumer, the requirements of consumer protection legislation must be observed. |
When you sell on commission, you sell someone else's goods, but you do it on your own behalf and for a fee. You act as a commission agent and act in accordance with the commission agreement.
What is commission trading? |
Typically, you yourself look for buyers and enter into purchase and sale (supply) agreements with them on your behalf. As a rule, you independently transfer the goods and receive money from buyers for it, and then transfer them to the person who provided the goods - the consignor. You report to the principal about the completion of purchase and sale transactions, and he pays you a remuneration (Articles 991, 999 of the Civil Code of the Russian Federation).
The main feature of commission trading is that you do not have to buy a product in order to then sell it. You immediately sell someone else’s goods, acting as an intermediary.
What and whose goods need to be sold, when and for what price, the amount and procedure for paying remuneration to the commission agent, the procedure for his reporting, transferring money to the principal, and so on, with regard to the relationship between the commission agent and the principal, are agreed upon in the commission agreement.
The relationship between the commission agent and the buyer is no different from the relationship between an ordinary seller and buyer.
What are the restrictions on commission trading of products? |
If you sell food products and have organized a distribution network for this or supply such goods to distribution networks, commission trading is not always possible. This is permitted if you and your counterparty are a group of persons and/or form a trading network (clause 5, part 1, article 13 of the Trade Law). You can also enter into a commission agreement if your revenue or the revenue of a group of individuals or a retail chain from the sale of goods for the last calendar year does not exceed 400 million rubles. (Part 4.1 of Article 1 of the Trade Law).
If you are subject to the ban and violate it, you may be subject to a very significant fine - more than 1 million rubles. (Part 5 of Article 14.40 of the Code of Administrative Offenses of the Russian Federation).
What should the commission agent take into account if the principal or buyer is a consumer? |
If you sell consumer goods or your customers are consumers, you must comply with consumer protection laws. They relate, in particular, to the terms of commission and purchase and sale agreements, the responsibility of the commission agent, informing the buyer about the product and the commission agent, rules for the sale of individual goods, etc.
The main regulatory document is the Law on Protection of Consumer Rights.
When trading non-food products on commission, also follow the Rules for commission trading in non-food products. In the relationship between the principal and the commission agent, they, in particular, relate to:
acceptance of goods for commission, including the form and content of the document by which it is drawn up (for example, a commission agreement);
a list of documents that the consignor must transfer along with the goods;
markdown of goods accepted for commission;
settlements between the commission agent and the principal.
In the relationship between the commission agent and the buyer, the Rules concern, in particular:
providing information about the commission agent, including the license (if the activity is licensed);
conditions for the sale of goods by the commission agent, including the sale of certain types of goods (for example, jewelry, products made of precious metals).
If you sell used non-food products, you must additionally take into account the features established by the Rules for the sale of certain types of goods. In particular, in this case you must inform the buyer in writing that the goods have been used.
Marking of remaining goods received from individuals
According to generally accepted rules, the commission agent ensures the labeling of unmarked goods accepted for sale under a commission agreement from individuals who are not individual entrepreneurs.
Scheme for marking remaining goods under a commission agreement:
- 1. The commission agent creates a description according to a simplified scheme (based on 4 attributes). The system assigns a unique code to the product - GTIN.
- 2. Orders marking codes in the required quantity (each unit of goods has its own identifier). Receives them, unloads them from the control system, and prints them.
- 3. Puts marking codes into circulation.
The cost of marking codes is 50 kopecks (this amount does not include VAT). You must pay for your order after receiving the invoice. Marking codes are stored in the system for a limited time (defined individually for each group of goods). Once they are produced, they can be printed and applied to products. For printing, use a label printer or office printing device.
Returning unsold goods to the owner
If the marked product could not be sold, it is returned to the owner. In this case, the stamps are also withdrawn from circulation. The following methods are available:
- through the personal account of the labeling system (a corresponding document is generated indicating the reason “Return to an individual”;
- through the commodity accounting system;
- manually, by creating a file “Withdrawal of goods from circulation” and loading it into the labeling system.
In case of return of goods to an individual entrepreneur or organization, a UTD is issued or a shipment message is created.
Thus, marking did not bypass commission trade. By 2024, there will not be a single product left on the Russian market without means of identification, and their movement will be tracked through the Chestny ZNAK system.
Equipment for marking under commission agreements | ||
Online cash registers Cash registers with support for clothing labeling Honest Sign Go to catalog | Barcode scanners Scanner for reading labels with DataMatrix codes Go to catalog | Label Printers Thermal transfer printers for printing labels with markings Go to catalog |
Programs Programs for goods accounting and document management Go to catalog | Connection to EDF Connection to electronic document management of different operators Go to service | Ready solutions Ready-made sets of equipment and software Go to catalog |
Need help with commission marking?
Don’t waste time, we will provide a free consultation, help you register and label your remaining clothes and shoes.
You might also be interested in:
Online cash registers Atol Sigma - how to earn more
How to make a return to a buyer at an online checkout: step-by-step instructions
MTS cash desk: review of online cash register models
Scanners for product labeling
Shoe marking for retail 2021
Online cash register for dummies
Did you like the article? Share it on social networks.
Add a comment Cancel reply
Also read:
Shop automation programs
Today, store automation programs are an excellent solution for taking your business to a new level and remaining competitive in this industry.
Store automation on favorable terms A comprehensive solution for your business with equipment, software and configuration. Full compliance with Federal Law-54. Advanced analytics capabilities. Read more about the offer Automation of a retail store is a set of measures to improve the activities of retail stores... 754 Find out more
"Kontur.Market" and product labeling in "Chestny Znak"
In this article we will look at a well-known labeling product.
Let's study the main features of the software, pricing and other points. SKB Kontur is a well-known software developer in Russia. One of its products is the commodity accounting web service “Kontur.Market” for retail trade and catering. The software is recommended for small retail and networks with up to 100 retail outlets. "Kontur.Market" is used to work with... 932 Find out more
Customer displays: why they are needed and what they are
A customer display is a device for displaying information that is of interest and value to the customer.
With such a device, the retail outlet receives an advantage in the form of increased visitor loyalty. The buyer's display displays information about the price, name, quantity of the product, and the total amount of the purchase. The display can also provide information about discounts and promotions. The customer display is used in all areas of activity:… 452 Read more