Understanding Non-Kotis Produced Merchandise and Kotis Inventory Exclusivity

  • updated 1 yr ago

After signing a program, Kotis provides clients the opportunity to transfer an initial set of pre-existing inventory to our warehouse.  Once the program is established, Non-Kotis Produced Merchandise will only be accepted subject to the Inventory Exclusivity clause in our agreements.

Our core business model is producing the swag itself, and as a condition for warehousing and fulfilling inventory, we require that Kotis is given an opportunity to bid on all items coming to our warehouses.


The Inventory Exclusively terms are defined in section #3 here: https://go.kotisdesign.com/online-services-terms/.

“Kotis will be the exclusive Inventory provider for items displayed and sold on the Kotis Online Services, unless Kotis cannot match another vendor’s price or specific product specifications. Client must provide Kotis with the other vendor’s formal quotation and be given the opportunity to match the price and product specifications. If any merchandise is purchased from other vendors by Client outside these terms, Kotis has the right to refuse receipt of goods and not display them on the Kotis Online Services.”


The Inventory Exclusivity provision requires that you allow Kotis the opportunity to produce the items or match another vendor’s quote. Even if you believe  Kotis may not be able to produce a particular item, you must give Kotis the opportunity to bid.

We have access to a very extensive array of products and can produce the vast majority of items being sent to us. You must also send us the other vendor’s quote so that we can ensure we are matching like-for-like products.

In the event Kotis cannot produce a particular item, or cannot match another vendor’s quote, the Inventory Exclusivity provision allows you to purchase those items from another vendor. Please note that the hourly receiving charge will still apply and you must follow our delivery requirements.


Kotis is not a standalone third-party logistics warehouse, and does not offer warehousing services without the production of merchandise. We need to produce merchandise in order to be able to provide our suite of services.

If you send items to our warehouse without following the Inventory Exclusivity provision, we reserve the right to refuse receipt of the items.

In limited cases, where the Inventory Exclusivity provision was overlooked unintentionally, Kotis may agree to receive the items with a fee equal to 25% of our regular price for producing those items. Our goal is not to collect this fee on a regular basis and will work with you to help comply with the terms of the Agreement.


In addition to the Inventory Exclusivity requirements, you earn additional benefit on spend with Kotis through the Loyalty Credit, a 7% credit applied against your fulfillment fees with the goal to reduce or eliminate those costs.


For additional information on Non-Kotis Produced Merchandise reach out to your Kotis team.

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