Selling to retailers can be challenging, but it is essential for growth. Many manufacturers overlook selling to retailers as a channel for their products. Retailers are an essential partner in any company’s growth strategy, not just because they have an existing customer base, but also because they can help drive demand for your products.
When selling to retailers, you need to understand their needs and expectations, so that you can pitch your product effectively. Moreover, the kind of retailer you target and the type of product you sell will determine which one is the best partner. Read on to learn more about how to choose retail partners, as well as tips on selecting and working with them successfully.
How to Choose the Best Retail Partner?
Before approaching any retailer, you should make sure your product is retail-friendly. Here are a few questions to ask yourself to determine if your product is retail-friendly:
- What is the product type?
- What is the product dimension?
- How many units do you plan to ship?
- What is the price of your product?
- How many SKUs (Stock-keeping Units) does it have?
- What is the lead time for your product?
These questions will help you understand how retailers work and will help you identify the best retail partner for your product.
Further, there are many factors to consider when choosing retailers for your products, such as their customer base, the amount of shelf space they have available, their reputation, and so forth.
The type of customers you’re targeting should determine which retailers you approach. For example, if you’re selling products to millennial women, you should target retailers that cater to that specific audience.
Before approaching a retailer, you should check their sales data to understand their customer base and the products that sell well in their stores. If there are similar products that are already selling in their stores, you should avoid approaching them, as they might not be interested in adding a similar product.
Amount of Shelf Space
One of the main reasons manufacturers sell to retailers is to increase their exposure to the market. Retailers, on the other hand, are there to increase their sales and meet their financial targets. You need to understand that retailers have set standards for each product category to determine how much shelf space each product gets.
You should also consider the reputation of the retailer and whether your product will fit in their store. Some retailers specialize in selling certain types of products, while others represent a general audience.
You should also research the type of products each retailer typically offers. This will help you avoid approaching retailers that won’t benefit from your products.
If you’re targeting large retailers, you might have better luck approaching their suppliers to discuss your product. This will give you a head start with their retail buyers, who will likely know your product and be interested in adding it to their shelves.
Tips for Selling to Retailers Successfully
Understand their business model: Before contacting retailers to sell your products, you should understand their business model and the requirements for each product category.
- How do they purchase products?
- What are their financial targets?
- Are they open to new ideas?
- What are their inventory requirements?
- The more prepared you are, the better the chance of success.
The more prepared you are, the better the chance of success.
Provide detailed information: Be sure to provide detailed information about your product, including its design, supply chain, sales data, and marketing plan. This will help the retailer understand your product and decide whether it’s a good fit for their store.
Offer exclusivity: If you have a unique product that is not readily available from other manufacturers, you can offer exclusivity in return for stocking your product in their stores. This will help you stand out from the competition.
Understand their distribution model: Most retailers purchase products from manufacturers and then sell them directly to their customers. You should understand their distribution model, and be prepared to work with their distribution network.
When selling to retailers, you need to understand their needs and expectations, so that you can pitch your product effectively. Moreover, the kind of retailer you target and the type of product you sell will determine which one is the best partner. If you want to learn more, subscribe to our newsletter.