E-commerce Technology: Putting the diligence back into vendor due diligence
Just because a vendor turns up at trade shows and advertises in magazines no longer guarantees the company will survive or can provide retailers with good service. That’s particularly true of the many young, technology-focused companies that serve online retailers. That doesn’t mean they won’t be great partners, but it does mean retailers must look closely at their finances, investor base and customer list. What are the most important questions to ask a potential vendor? What’s the best way to get candid feedback from current customers? How do retailers structure contracts to minimize risk in the event a vendor struggles? What service guarantees should be included in contracts? What are the signs a vendor is in trouble, and what does a retailer client do when those signs appear?