In light of the change in the Retail Store Rule, here are the Frequently Asked Questions to guide ABOs accordingly.
1. Why is Amway making this change to the Retail Store Rule?
It's always been Amway’s goal to create an environment that fosters and encourages product selling as an integral part of a healthy business. Allowing limited product sales at authorized retail service establishments and temporary events will provide greater exposure of exclusive Amway-branded products, making it easier for ABOs to sell these recognized brands.
2. Is the next step to sell exclusive Amway products in retail stores?
No. Amway has no plans to sell exclusive branded products in retail or mass merchandising stores. Since the beginning, Amway's sales and marketing plan is intended to have all Amway products sold through the ABO.
3. What about maintaining a level playing field for all ABOs?
A level playing field means that all ABOs must follow the same Amway Rules of Conduct and are given an equal opportunity to compete. All ABOs will be eligible to sell and display products at authorized Retail Service Establishments/Temporary Events, and/or sponsor owners and managers of Retail Service Establishments to become ABOs.
4. If I work hard to develop a customer, and that customer can now buy her products at her salon, I might lose a customer! That’s not fair, is it?
Customers who recognize the value provided by the ABO (personal service, convenience, direct shipments to their home, etc.) will continue to shop through the ABO, rather than switch. ABOs who provide an exceptional level of service and are knowledgeable about the products, will earn and maintain their customer’s patronage.
5. Why is Amway requiring that the owner or manager of the Retail Service Establishment become an ABO? Why can’t ABOs be allowed to provide the product to the Retail Service Establishment according to their agreement with the owner?
Our business model is that ABOs will sell products to customers. If the ABOs simply sells to the establishment, the establishment in turn sells to the end user. When the owner or manager is the ABO, then ultimately, an ABO is selling to the end user.
Also, an ABO must always be responsible for our products. If a violation of the Rules occurs, we will not be able to take action and correct the Retail Service Establishment if we do not have a contract with it. Lastly, the ABO owner or manager will benefit more through the Amway Sales and Marketing Plan.
6. Can the volume generated through the Retail Service Establishment/Temporary Events be recognized for qualification?
In general, the volume generated will be recognized for qualification, but is subject to verification. If there are doubts as to whether the product was sold to end customers, and not merely purchased and placed in Retail Service Establishments, Amway will verify sales records. If the ABO can prove that the products have been sold to end consumers, then the qualification will be recognized.
7. How will the ABO keep track of sales in a Retail Service Establishment/Temporary Event?
The ABO should register the Retail Service Establishment or the Temporary Event as a customer with its own customer number for the purposes of tracking sales, but it will not be considered as the end user. By doing so, the ABO can keep an accurate accounting of sales.
8. Why is it necessary for ABOs to submit a request for authorization before selling and displaying Amway products at the Limited Retail Services Establishments/Temporary Events?
It helps Amway identify the ABO who will look after that venue since it is registered under his/her number.
9. How does the ABO manage costs, expenses, and return of Amway products from a Retail Service Establishment/Temporary Event?
ABOs shall be responsible for seeing to it that they have reasonable costs and expenses from the Retail Service Establishment/Temporary Event. They must assume all responsibility for any costs, losses, or damages arising out of or in connection with the authorized activities. This includes but is not limited to insurance, cancellation fees, or deposits. We would like to highlight the importance of public liability insurance to our ABOs who conduct any Amway business activities in public spaces such as bazaars, fair trades, exhibits, forums, festivals and parades.
ABOs should use reasonable common business sense when ordering products to be promoted and sold at an authorized event or location. ABOs Should not order supplies of Amway products for the sole purpose of displaying and selling at any event or location prior to their request being authorized by Amway.
Returns will be managed per the return policy of Amway Philippines.
10. Will this exception to the Rule allow ABOs to prospect at Retail Service Establishment?
ABOs may not present the Amway Sales and Marketing Plan at the retail service establishment or authorized temporary event. They may give basic information on Amway and the Amway business opportunity.
ABOs may share contact information with the interested parties and upon approval, contact them outside the retail service establishment or temporary event, and invite them to Amway Opportunity Meetings where the Amway sales and marketing plan is presented and explained.
11 What if an ABO does not follow the Retail Store Rule?
ABOs who violate any of the Amway Rules of Conduct will be subject to disciplinary action, up to and including the termination of their Amway business.