There are various methods of partnering with retailers, each with different advantages depending on the nature of the product, target audience, and long-term goals.
· Direct relationship with the retailer provides control over product presentation, shelf space, and marketing
· Reliable and predictable supply chain management when working with established retail networks
· Higher margins compared to intermediaries
Retail Partnerships
· Visibility and credibility by associating brands with a reputable retailer
· Promote product giving more exposure
· Co-branded products drive traffic to the retailer's store increasing sales for both parties
· Established networks and relationships with local retailers, making market entry faster and easier
· Lower administrative burden for the manufacturer, the distributor handles retailer negotiations and logistics
· Focus on manufacturing and product development while the distributor takes care of the retail sales aspect
· Interaction with customers, allowing for hands-on demonstrations and personalised service
· Increased brand visibility in high-traffic retail locations
· Differentiation of brands with a dedicated space within an established environment
· Broadens reach to other businesses requiring products as part of their own operations
· Retailer networks have strong relationships with a variety of business customers
· Lower margins due to the intermediary’s fees and potential markup
· Lower upfront risk for the retailer
· Potential for higher product exposure in the retail space
· Maintains ownership of the unsold stock, allowing for flexibility
These methods depend on factors such as your target audience, the type of product, and the level of control you wish to maintain.
· Established platforms have a large volume of active buyers
· Consumers are more likely to trust well-known platforms that provide buyer protection and customer support
· Most marketplaces offer easy-to-use tools for setting up your store and listing products
· Full control over the look and feel of your website
· Higher margins keep the profits, minus payment processing fees
· Direct relationship with customers in the database helping analyse buying patterns, and run targeted marketing campaigns
· Social media platforms (especially Instagram and Facebook) have integrated checkout features, allowing consumers to make purchases without leaving the app
· Direct engagement with potential customers through posts, stories, ads, and live videos, building a community around the brand
· Social platforms make it easy to collaborate with influencers, which can help expand reach and credibility in a new market
· Global reach providing access to international buyers looking for wholesale products
· B2B platforms are tailored for larger transactions, offering features like bulk ordering and trade negotiations
· Established platforms provide logistics, payment processing, and other business services that streamline the sales process
· No need to purchase store inventory, reducing financial risk.
· Flexibility offering a wide range of products without worrying about stock management or warehousing
· Expand product offering without major operational changes
· Many directories and classified ads are free to use helping reduce upfront costs
· Local reach for targeting a specific geographic area or niche audience
· Direct connection with customers helps build trust and relationships.
Developing the right business strategy when selling via retailers or through online services is essential to determining the appropriate method of market entry.
