Amazon allows millions of your clients access to your products without any hassle 24/7. Both business owners and niche entrepreneurs can sell everything from industrial parts to cotton swabs on Amazon and other online marketplaces and can give their customers upfront prices as well as discounts. Even in the age of online ordering, retail is thriving -- Statista projects (paywall) that U.S. retail sales will grow from $5.57 trillion in 2020 to $5.99 trillion in 2023. It may even be aided by insights from the online marketplace. Have you ever thought about moving your brand from Amazon to retail?
This could be beneficial, as retail outlets allow your customers to physically experience your product. Retail also brings face-to-face opportunities with roadshows, which can help you to understand your customers' needs better. If your product is under $20, retail has great sales potential since individuals may be susceptible to impulse buying; according to a 2018 survey from Slickdeals.net (via CNBC), the average U.S. consumer spends $5,400 per year on impulse buys. On top of that, you will not have to deal with a lot of problems that buyers experience when purchasing your goods in online marketplaces. Problems sellers face online include late deliveries, lost shipments, wrong customer addresses and negative reviews.
Are you wondering how you can take your brand from Amazon to retail? As the president of a company that helps place products in stores, here are five steps I recommend that can help you achieve this goal.
1. Build A Following
If you want to succeed in taking your brand into retail, you should start by building a following. This means that when your "followers" want to purchase the product you sell, you can direct them into a local store to make that purchase.
To build a following, you should create a brand that people can love, and use their love of your brand to spread opportunities. It is not just about creating a fancy logo or writing the best business plan. How do you speak about your brand? What causes do you post about on your social media platforms? Giving your business a personality will allow you to talk through your actions to a potential client or community. I've found that people are more likely to like what you are selling if it embraces their values and culture.
You can also get followers for your brand by publicly engaging and appreciating your employees using ideas like those covered in a recent Harvard Business Review article (paywall). Additionally, hold community events where you fill a gap in society.
2. Start With Independent Retailers
This is the second step of moving your brand from Amazon to retail. Independent retailers can help you to make more sales because the owners are usually more involved and have a lot of freedom to do what they deem best for the business.
Offering a personalized experience to customers can keep them coming back into independent retailers to shop more. If your product line can give the shop owner a way to improve their customers' experience in the store, that would be a great way to get your foot in their door.
For one to make it with an independent retailer, they should embrace change and seek to broaden their pool of clients every day. On top of that, it is important to enhance one's customer service and create exclusive lines like Macy's to allow for uniqueness.
3. Build A Good Working Relationship With Your Independent Distributor
If you work with an independent distributor (full disclosure: Mr. Checkout is a group of distributors), they will typically purchase the products at a discount on the wholesale price and mark up their price around 20% when they're selling into a store. Keep a solid working relationship with your independent distributors, and listen to their needs to maximize your chances of making it nationally through independent distribution.
Also, give your independent distributors the respect they deserve. If you are going to introduce any new products, let them know first. When you're launching a new line, you should always offer training to either the distributors themselves or through the distributors into the retailers.
4. Make Sure The Independent Distributors Are Looking For A Line Like Yours
If you're trying to effectively move your brand from online marketplaces with independent distribution, choose your distributors wisely. To work well with them, the retailers and distributors should be looking for a line like yours. Take your time to research extensively to find the stores and distributors that see an opportunity with your line. For example, if you specialize in selling paper products, look for independent distributors who are looking for similar items, which may include paper napkins, bathroom tissue and paper towels. Before deciding on any independent distributors, know the company's policies, fees and business credits (promotions or discounts that are often negotiated) to understand who they are before negotiating terms.
Choosing the wrong independent distributors can be disastrous, and your product could sit in their warehouse building up fees if it's not selling. This means that the line may not make a profit, and you may lose money.
5. Find The Best Representative To Take You To The Meeting
After identifying the distributors you need, you can consider hiring sales representatives if you're looking to grow into big-box retail. Hiring sales reps can be expensive, as many work as independent contractors who require a base salary plus commissions and paid expenses. However, if you find the right rep, they can open the door to a large purchase order that may not have been possible if not for the agent's experience and relationships. Look for someone who understands your market, sells parallel products to retailers that you would like to approach, and has enough industry experience to explain product fit to a retail buyer.
Diversifying your brand from Amazon to retail can be a fantastic idea that can help you make more sales and eventually grow your brand. Begin by acquiring a following, gaining the right independent retailers and developing your distribution to take your business to the next level.
