Liquid Telecom stock shortages and sales commission delays explained

Liquid Telecom is currently transitioning the company, which has resulted in stock shortages and delays in paying sales commission to resellers.

MyBroadband received information from resellers that sales commissions have not been paid on time, and that there has been no handset stock for three months.

“There is a huge demand for their products – how does a telecoms provider have no handsets to supply their clients?” one reseller stated.

Liquid Telecom explained that it “has resolved to increase its focus on the SME, enterprise, government, and wholesale portfolios in South Africa, while decreasing its focus on the consumer space”.

As a part of that decision, two retail stores in KwaZulu-Natal and Gauteng will be closed for foot traffic, and customers will be redirected to their call centres.

The company is also exploring opportunities with partners to “transition current consumer services and associated resources into a more relevant and technology-enabled customer touchpoint”.

“As a result of this, the ordering of new stock will also be interrupted until the transition is complete,” said Liquid Telecom.

The company said the decision to evolve the business was taken with the intention of meeting the significant increase in demand for local products and solutions.

“It will be undertaken with the needs of customers, resellers, staff, and partners in mind.”

Issuing of sales commissions

Liquid Telecom said it was also aware that its channel partners have “a number of concerns” around the issuing of sales commissions.

It explained that its payment process can only be initiated upon the receipt of an invoice, and it found that there was a gap in this process which impacted on the payment of sales commissions.

“We would like to encourage all of our valued partners to submit any invoices and supporting paperwork to our accounts payable team and we will endeavour to close off all payments as soon as possible,” said the company.

Liquid Telecom said any further developments will be communicated to its stakeholders.

Now read: Liquid Telecom’s growth strategy in South Africa

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Liquid Telecom stock shortages and sales commission delays explained