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Selling Direct to Retailers

You don’t always have to sell direct to the public. You can sell your goods to retailers who already have established shops. This is a great way to get your brand noticed and start making some money from your work.

Here are some things to consider when selling direct to retailers:

Is the store the right fit?

Make sure the your items are sold somewhere that makes sense, considering your target market, price point and branding. If you pick the wrong store you may confuse people’s perception of your brand, neglect your target market or miss sales opportunities.

What audiences will you reach?

Find out the demographics of the store’s regular clientele and decide whether it overlaps with your target audience enough for you to be profitable in that space.

Look at the other items sold at the store. Are they similar to yours? Ideally, your product should ‘fit in’ with the other products in the store, so that they appeal to the shop’s customer base, without being so similar that your potential profits are cannibalized.

What sort of contract are you signing?

When you sell direct to retailers you can sell wholesale, which means the retailer is buying your products directly for a discounted rate; or you can sell consignment, which means you will only receive money if your products sell in store. Selling wholesale gives you more financial security, as you will be paid for the goods up front, instead of receiving money for the items when and if they sell.

Your contract should also indicate the duration of your agreement, what happens if goods don’t sell and who will pay for shipping costs.

If you find the right shop and sign a contract which protects your rights selling direct to a retailer can assist you in building your brand recognition without having the same responsibilities involved with permanent market stalls or shop-fronts.