Buyer:

Any person or entity with a Buyer Login account that is considering or has already bought units of inventory within a Group-Buy.

 

Business:

Any business entity that has entered into a Blanket Purchase Order agreement to purchase units of inventory from Buyers as the result of a successful Group-Buy.

 

Supplier:

The manufacturer or otherwise distributor of the inventory that the Business ultimately consumes for business purposes.

 

Agent:

The third-party entity known as Part Distribution LLC, (DBA Novanty), working on behalf of the Business and the Buyer(s). Agent is responsible for working as an intermediary between the two parties and facilitating transactions.

 

Units:

Also referred to as “Inventory”, “Item”, “Products”, “Goods”, “Component”, “part”, “Widget”, etc. This is the physical asset that is being purchased/ sold.

 

Blanket Purchase Order:

The structured distribution agreement between Business and Buyer where the Business is agreeing to purchase a specific total quantity of units of inventory from any and all Buyer(s) for a specific price per unit within a specific Time-Period. This BPO may be a stand-alone contract file or simply verbiage within the Group-Buy’s text.

 

Group-Buy:

An e-commerce web listing that allows Buyer’s to buy and sell inventory represented by a specific Blanket Purchase Order. Buying inventory in a Group-Buy binds the Buyer with the terms of the Blanket Purchase Order that the Group-Buy represents.

 

Open Buy period:

The original initial offering of a Group-Buy in which Buyers are pooling together to buy from the Supplier to benefit from the buying power of the group to get a discount or otherwise meet a Supplier’s Minimum Order Quantity. This is usually purchasing inventory before it is even produced from the Supplier. The Open Buy period continues until the entire quantity of inventory named in the Blanket Purchase Order is purchased by Buyers, or the time limit on the Group-Buy expires.

 

Buyer-to-Buyer:

The act of a Buyer purchasing inventory from another Buyer. Note that the NEW Buyer will also be bound to the terms outlined in the original Blanket Purchase Order.

 

Buy-Price:

The price Buyer’s pay per unit to buy inventory. This price includes costs such as the estimated cost to produce, ship, receive, warehouse, insure, fulfillment, etc. Each Blanket Purchase Order and/ or Group-Buy will clearly define which costs are included in the Buy Price and which are not.

 

Sell Order:

The list maintained by Novanty that decides the order in which the Business will be directed to purchase each unit from the list of Buyers.

 

Sell-Price:

Each Blanket Purchase Order lists a dollar amount that the Business is under contract to pay Buyers per unit unless the Buyer’s voluntarily accepts less.

 

Adjusted Sell Price:

Each Buyer has the ability to voluntarily accept less for their units of inventory than the original Sell Price in order to gain better position on the Sell Order list and sell their inventory faster.

 

Exclusive Right to Buy:

A Time-Period stated within the Blanket Purchase Order and Group-Buy that guarantees the assigned Business full access to purchase all related inventory from the Buyer(s) for a fixed or mutually agreed price per unit.

 

Max Return:

The highest possible Return a Group-Buy has the opportunity to provide a Buyer.

If a Buyer buys inventory for a higher price per unit such as from another Buyer via Buyer-to-Buyer Sale, or if a Buyer voluntarily reduces their own Sell Price, a smaller ROI would be realized.

 

Minimum Quantity:

The minimum number of units a Buyer must buy to participate.

 

Cancelled Group-Buy:

If a Group-Buy does not ultimately sell enough units of inventory during the Open Buy period to cover the Blanket Purchase Order’s needs, the Group-Buy will be cancelled and all Buyer(s) that did buy units will get a full refund.

 

Default:

If a Business fails to purchase all of the units they were contractually obligated to purchase by the set Time-Period stated in the Blanket Purchase Order, the Group-Buy is then to be considered in “Default”.

 

Diversification:

The act of buying smaller quantities of inventory from multiple different Group-Buys instead of a large quantity of inventory from a single Group-Buy as a means to diversify risk.

 

Milestones:

Throughout the entire Supply Chain and Distribution process, there are a lot of moving parts. There are various Milestones within that process that once achieved, technically reduce the risk of holding inventory. Such as once the inventory has been received in the warehouse and the Business is starting to purchase inventory from other Buyer’s as scheduled. This Milestone indicates that the Business is fulfilling their obligations on schedule and is closer to purchasing the rest of the inventory.