Questions

Put yourself in the buyer's shoes. Why does your customer buy from the retailer rather than from you even though clearly your wholesale prices would be cheaper?

Here are a few reasons:

1. Customers can find the retailer, but they can't find you. Perhaps your retailers spend money, time, and effort on advertising, seo, and web design that you don't.

2. Customers know the retailer, but they don't know you. Probably the retailer has invested in better branding and garnered more consumer trust than you have.

3. Customers have done business with the retailer before, whereas you're an unknown. Most likely, the retailer has accumulated a customer base – even an email list. They enjoy repeat website traffic and can reach out to talk directly to past customers whenever they feel like it. Moreover, they've handled enough transactions to be widely reviewed online and mentioned in social media.

4. Customers find a better experience with the retailer than they'd get with you. Maybe the retailer offers a wider selection of products. Maybe the checkout process, payment, shipping, and customer service are streamlined at the retailer. If you're a 1-man or 1-woman show, then there might be economies of scale at the retailer that you'd find it hard to replicate.

Look at those areas – branding, web design, marketing, customer service, etc. Most likely you'll find gaps between what you offer customers and what the retailer does. Then you can evaluate how to close those gaps and whether doing so is worthwhile.

You can build your own brand while continuing to partner with more established retailers. That's where I would focus, if I were you. Grow awareness.

You might even refer consumers to trusted retailers where they can buy your merchandise. Yes, that means they pay more. Yes, that means you lose a fraction of the money. But your brand gains authority by piggybacking off the reputable brands that feature you. If you regard them as partners, then you might also ask about affiliate commissions for referrals. And that might offset the money you leave on the table by sending your buyers to them.


Answered 9 years ago

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