How does the Marketplace program work?
You determine which of your products are listed on Digikey.com along with the price and respective shipping costs. DigiKey handles the website transaction and collects any relevant taxes, fees and shipping. At the conclusion of a sale, we notify you to ship products to the customer.
Is the DigiKey Marketplace a different web-site than www.digikey.com?
No, the experience for the customer is exactly the same.
I am already a DigiKey supplier, how can this program benefit me?
The Marketplace program opens opportunities to sell products that we cannot handle in our facilities, such as products that classify as hazardous or need special handling. This is also an opportunity to expand your product offering on DigiKey for customers to purchase. Contact your product manager and ask if the Marketplace program can fit your additional product needs.
How does the order fulfillment process work for DigiKey Marketplace sellers?
As a DigiKey Marketplace seller, you will be responsible for fulfilling the orders placed by customers. Supplier will ship either DDP or CPT Incoterms to end customers. Supplier will determine regions that they want to ship and sell into and can be expanded at anytime. DigiKey provides real time notice of order placement and details.
Do I have to sell my products exclusively on the DigiKey Marketplace?
No, the DigiKey Marketplace program does not require exclusivity. You can continue to sell your products through other channels while also offering them on the DigiKey Marketplace.
How can I manage my inventory and product listings on the DigiKey Marketplace?
DigiKey provides a seller portal where you can manage your inventory, create and update product listings, track orders, and financial information for each transaction.
Can I ship using DigiKey's courier account?
This is not an option today. Shipping charges are pulled from your entry into the portal and charged out with each transaction. This is the amount that will get reimbursed to you for each transaction.
Do I have control of which countries I would like to offer my product?
Yes, you determine where you want to advertise and ship globally.
How is trade compliance handled for Marketplace products?
All Marketplace Suppliers are required to only ship to countries on the list of DigiKey’s supported destination countries and be the exporter/shipper of record and will retain title to the Products until title transfers to DigiKey. Shipments from the Supplier shall be made CPT (Incoterms 2020).
Can I join the Marketplace program if I don’t have a US-based warehouse?
Yes, you can! Ensure all products you plan to sell and ship to the US comply with all US import and export regulations. As the shipper, you are responsible to ensure that all outbound shipments from your international warehouse include the proper labeling and packaging as required by US customs import laws.
It is the best customer service experience that you ship the orders as delivery duty paid (DDP) which means you as the shipper will be responsible to pay all duties and taxes. This method provides the best customer experience and will minimize customer denied shipments. You as the Supplier can be the importer of record or utilize a customs broker to facilitate customs clearance and payment of duties and taxes.
It is also an option to ship products under carriage paid to terms (CPT) which means you, the Supplier, will only pay for transportation to the final destination and the customer, as the importer of record, will be responsible to pay applicable import duties and taxes.
Overall, it is best to consult with your logistics carrier for specific details.
Can I set a minimum order quantity and/or volume pricing?
You can specify this information for each product you sell on the Marketplace.
Who sets prices for my Marketplace products?
You have control of the price and availability of the products listed in the Marketplace program.
However, DigiKey does reserve the right to modify prices for two purposes:
- Adherence to price fixing laws, and
- If a supplier were to enter the market and attempt to undercut all competition by lowering their sale price below standard market pricing, we would adjust the price upward to put all suppliers on an equal footing. We don’t want a supplier trying to “buy” the market and force out the competition. At the same time, at no point would we adjust downward the resale cost, as that would impact the market as a whole and reduce the revenue of the supplier – obviously unfair to all involved.
Can I change resale pricing using my portal access?
Yes, you can make pricing changes in real time as your product costs change or a new price book is introduced. You may also discount closeout or older legacy inventory.
Do I need to invoice the customer?
No, DigiKey will invoice the customer, you will only be responsible for a packing list to the customer.
What happens if a customer wants to return an order?
The Marketplace portal allows for discussion with the end customer, DigiKey Customer Service and Supplier to resolve any issues with a shipment or a return request. The platform allows email exchange to resolve or provide an RMA number for each request.
What is the cost to participate in this program?
DigiKey flash purchases products from you at time of shipment at an agreed upon discount. There are no monthly fees to participate in the Marketplace program which allows you to add as many products as you like to this program with no risk.
How does my company get paid for products in the Marketplace program?
Invoice cycles are every seven days, invoiced on Net 30 terms. For all orders within that time frame that have been received by the customer and show “Received” status in your seller portal, you will be sent payment.
Will I receive a 1099 Tax Statement during tax season?
We will not be sending a 1099 as we flash-purchase your product, thus making it a resale product.
Does DigiKey provide me a tax-free certificate?
Yes, we supply a tax-free certificate for all US states.
Can I set my shipping charges?
Suppliers in the Marketplace program set and keep the entirety of their shipping cost.
Does the customer pay for the order immediately, or can we offer payment terms?
A customer may use their DigiKey payment terms on Marketplace products. Regardless of the terms the customer has with DigiKey, you will still be receiving payment each month.
Do I need a US bank account for my payment?
A US bank account is not required but is highly recommended as it will eliminate transfer fees that often get charged for international payments.
Can I structure my payments to help minimize wire transfer fees?
Yes, you can set up a situation such as a threshold price or time frame for when you are paid by DigiKey.
Will DigiKey be able to apply for credit at my company for the purpose of accumulating payments every 30 days?
Yes, if your company requires a credit application to be on file, DigiKey will fill out and apply references to establish credit with each supplier.