Dive Into a New Product Category

The key here, says Mollo, isn’t to create a line on your profit and loss statement for income from vendor chargebacks. Rather, it’s to establish a relationship in which the vendor notifies you in advance of potential delays. In this way, delivery flow and perhaps reduced purchase order quantities can be negotiated, rather than you and the vendor getting into a chargeback situation. The goal here is timely delivery so you can avoid backorders in the first place.