MYBOTTLESHOP LIQUOR LINK - DROPSHIP AGREEMENT - COMMERCIAL IN CONFIDENCE

Definitions:

Supplier - the supplier sending the goods.

MyBottleShop - www.mybottleshop.com Pty Ltd A.C.N. 162 467 763

1.0 Preamble:

This drop-ship offer is made with the following pre-text in mind:

MyBottleShop is an online retailer, technology and marketing business.
Supplier manufactures or distributes alcohol related product/s and are busy producing their products.
Supplier does not have the contacts, time or resources to quickly gain nationwide and/or worldwide distribution.
Supplier does not have the scale to adequately market their products quickly and effective to a large consumber base.
Supplier needs to focus on production, brand building and quality product delivery.
MyBottleShop will offer significant brand building opportunities.
This agreement gives producers, importers, distributors and brand owners the opportunity to reach independent trade customers.
Acceptance of this offer occurs when the Supplier accepts the first drop ship purchase order.
Agreement covers only mybottleshop.com.au and exludes mybottleshop.co.nz, mybottleshop.com and mybottleshop.sydney.

2.0 Drop Ship Delivery:

Goods are stored at the Supplier location andare drop shipped directly to the customer.
MyBottleShop will create a virtual warehouse with stock on hand matching that at the Supplier's real warehouse.
The Company will update MyBottleShop with stock holdings and price on a weekly basis by CSV file.
When a customer places an order for a product from MyBottleShop’s web site, by COB MyBottleShop will automatically issue a purchase order (drop ship request) and a packing slip with the customer details by email with PDF format link.
The Supplier will be responsible for advising the tracking number to MyBottleShop so the customer can be updated.
Product/s must be shipped by Supplier within 1-2 business days of receiving purchase order from MyBottleShop.
Product/s must be securely packed.

3.0 Pricing:

MyBottleShop will abide by the supplier's SRP (Suggested Retail Price) but requires a minimum 20% margin for DropShip offers, but this is negotiable depending on the product.
Supplier retains control of wholesale prices.
Regular price changes will be accepted e.g. CPI, tax increases, ABV changes etc
All other wholesale price changes need to be agreed between the parties with 30 days notice to ensure MyBottleShop is still competitive in the market.
All pricing changes must be advised in writing by email to [email protected].

4.0 Shipping and Shipping Costs:

MyBottleShop and Supplier to share shipping costs in a 50/50 split or supplier will rebate MyBottleShop $5 per order for shipping unless otherwise agreed.
Where MyBottleShop arranges shipping, a $5 rebate must be deducted from the Supplier invoice for each order shipped.
Where Supplier arranges shipping, a charge equal to the shipping cost must be added to the Supplier invoice for each order shipped.
For larger volume drop ship agreements MyBottleShop will give supplier access to our web based logistics software for printing labels.
In these cases MyBottleShop courier will pickup from supplier.
Also in this case MyBottleShop will create shipping label for supplier.
Also in this case MyBottleShop will update the tracking information for the customer.

5.0 Sales:

MyBottleShop shall use its best efforts to promote the sale and distribution of the Product and to provide adequate support, which efforts shall include the following:

(a) Establishing and maintaining appropriate, attractive and accessible retail, web and warehouse premises and facilities for the display and sale of Product/s;

(b) Provide an adequate, trained sales and technical staff to promote the sale and support of the Product/s;

(c) Undertake promotional campaigns, social media campaigns, Google Shopping coverage, Affiliate program inclusion, email direct marketing (EDM), Sydney Click & Collect site and canvas prospective users to stimulate the sales of Product/s.

(d) Provision of graphic design services to Supplier where required.

(e) All photography, web content including tasting notes and serving suggestions.

(f) Implementation of related product selling. up-selling and cross-selling.

6.0 Advertising:

Supplier shall, upon request, assist MyBottleShop on all advertising, sales promotion, and public relations campaigns to be conducted, including providing MyBottleShop with documentation of previous promotional campaigns conducted in connection with the Product/s, and shall provide necessary technical information and assistance. On occasion by agreement with both Supplier and MyBottleShop, Supplier will assist MyBottleShop by way of marketing rebates, product discounts, advertising co-funding, photo images, art-work, product samples and website links.

7.0 Samples (optional):

To assist MyBottleShop in professionally selling and marketing the product/s, Supplier to provide 1 bottle of each product covered by this agreement free of charge for professional photography, social media and tasting notes. Further samples should be provided by Supplier on request by MyBottleShop. This clause is optional at the supplier's discretion bearing in mind samples help drive sales.

8.0 Customer Data:

It is the intention of this agreement that both Supplier and MyBottleShop share data upon written request.

9.0 Delivery and Payment:

Purchase Orders. MyBottleShop shall order Product/s by written notice to Supplier. Each order shall specify the number of units to be shipped, the type of units to be shipped (as identified by Supplier Product number designations indicated in the Price List).
Shipment. Shipping dates are approximate and are based, to a great extent, on prompt receipt by Company of all necessary ordering information from MyBottleShop. Supplier should choose the fastest possible delivery method for sending Product/s on behalf of MyBottleShop.
Payment. MyBottleShop must pay Supplier promptly within 7 days from shipment of the product/s (or according to other agreed payment terms) via PayPal. Company has the right to charge late payments fees that must not exceed the annual Australian Commonwealth government bond rate.
MyBottleShop is currently developing software that will pay Supplier automatically on 7 day payment terms via PayPal. To take advantage of this automated payment system, Supplier must create a PayPal account.
There are no fees for PayPal payments.
For the product to be deemed shipped and due for payment the shipment tracking code must be valid and show the product/s left supplier warehouse.

10.0 Agreement Acceptance:

Agreement of this offer will come from the Supplier in the form of accepting the first drop ship purchase order after signing this document.

11.0 Breach Notices:

Supplier must ship the goods to the customer within 3 business days, failure to do so will result in a breach of this agreement.
The first and second breach will result in a written Breach Notice.
A third breach will result in the issuance of a second Breach Notice,
The third written Breach Notice may result in the termination of the agreement unless there is provable extenuating circumstances.

12.0 Termination of the Drop Ship Agreement:

Supplier may terminate this agreement by written 30 days notice.
MyBottleShop may terminate the agreement at any time after the issuance of the third written Breach Notice.

Note: Drop Ship Procedures Documents are available that guide the Supplier through the drop ship process.