The following stage is to identify a platform where you can sell once you’ve determined your target market, audience, and brand identity.
You’re probably asking why this is the first step. Isn’t it true that you should have an assortment ready before selling them?
Why is distribution important?
Most business owners make the mistake of devoting all of their energy to create the perfect product… only to discover that no one knows about it. Your products are crucial, but so are your marketing activities. After all, you’ll need to know how to increase brand awareness once they’ve figured out where to look.
This is particularly useful for sales forecasting, as it allows you to determine how much to allocate to each sales channel.
Online
**E-commerce
**Marketplaces
**Social media
E-commerce
Because you may modify and stylize according to your business identity, selling on your own website is the ideal way to proceed.
The best part is that you don’t need to know how to code to create your own website in today’s world. You have a lot of options when it comes to e-commerce companies!
Shopify, Woocommerce, and Wix are three of the most widely used e-commerce platforms. All three are good options, and they all include the essentials:
**Inventory management that is mobile-friendly
**Ability to make coupons and discounts
**Help (despite if Woocommerce only provides support through forums)
**SEO tools (Woocommerce’s SEO tool is an add-on) Apps and add-ons
However, some capabilities and design flexibility are only available on the platform in question. Here’s a basic rundown:
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Marketplaces
Consigning to internet marketplaces is another possibility. Because most marketplaces already have a consumer base, the platform is a terrific method to broaden your reach.
This is why, despite having their own website, some brands and businesses are available elsewhere. You have the option of selling on multiple markets or selling only on one – both are viable options.
However, there are drawbacks to this method of distribution.
#1 There is no creative control.
Some marketplaces, such as Lazada and Shopee, will display your product photos as such. Others, on the other hand, may prefer to keep the graphics consistent, which means you may lose creative control over how your products are styled, displayed, and priced.
#2 Cash Flow Disruption
Your cash flow may be affected by selling on marketplaces. Not only do you have to pay a monthly subscription cost and a commission fee, but your marketplace income may be delayed as well. Most marketplaces only pay after a specific amount of time has passed, so your profits will not appear for several months.
#3 Various target audiences
Not every market is right for your business. Although some marketplaces sell stylish items, visitors come for different reasons. In other circumstances, your brand could be buried beneath tens of thousands of others.
So, before you sign that deal, do some market research. Is your target audience the same for each of you? Is there a payment associated with this? Are there certain rules you must adhere to? What is their payment policy like?
For example, ASOS targets 20-year-old fashion lovers. They have a monthly subscription fee of £20, as well as a 20% commission fee on every sale.
Here are a few places you can start:
Asia – Zalora, Shopee, Lazada
Europe – Zalando
UK/US – ASOS, Amazon
Social media
This distribution approach is the newest of the three and is regarded as the most straightforward. All you need is a social networking account to get started.
In fact, several fashion firms began their careers by selling on social media before expanding to their own websites or standalone stores. Instagram and Facebook are the most popular platforms.
Offline (Retail)
Stores in shopping malls Stores in high streets Pop-up store or weekend booth at bazaars Consignment counter in department stores/multi-label specialty retailer stores
Self-contained stores
The decision to rent standalone businesses (conventional brick-and-mortar stores) necessitates extensive investigation. Before making a final decision, it’s critical to research customer traffic and important demographics. Spend both weekdays and weekends at varied hours to watch consumer traffic and shopping habits for a complete picture.
There are a few more important points to remember:
The importance of location cannot be overstated. However, keep in mind that a high-profile project necessitates a larger expenditure.
If you choose this sales channel, you will have a large capital outlay, which includes upfront deposits to malls or landlords, interior design engagement and construction, as well as technical equipment such as a POS system, security system, and so on.
Whether you rent from a mall or a storefront on the street, both require a longer commitment. For example, lease durations for malls might last up to three years.
Many decisions, ranging from store designs to construction, must first be approved by the mall. Because the mall sets the operational rules, you must also follow the mall’s operating hours.
However, procedures for street-facing establishments are more adaptable. Design, construction, and operating hours are all unregulated.
Weekend stall or pop-up store
You only need to manage a booth or a small shop for a short length of time for this sales channel. Because there is a cheap capital expenditure and low investment in fixtures and displays, it is a good way to establish or test new collections.
The lease lengths are also much shorter, ranging from three days (a weekend) to fourteen days.
However, keep in mind that this method necessitates the implementation of a sound marketing strategy, such as:
Because you’ll most likely be competing with other pop-up businesses or weekend stalls, there’ll be a lot of competition.
Because it will have the same layout as the rest, there will be no branding visible.
It’s possible that the location isn’t great.
Counter for consignments
Consignment, to put it simply, is a business agreement. The consignors, who are often department store or multi-label specialty retailing shop sellers, would sell your stocks for a commission charge.
It’s a good way to start or test new collections, similar to a pop-up store or weekend market. Of course, the same general guidelines apply: you must still conduct traffic and store research.
If you want to consign, you can negotiate for a prime placement within the store.
You have the benefit of leveraging your consignor’s marketing efforts, but when it comes to clearance sales, make sure you talk about who will shoulder the discount.
They nearly always determine commission fees, but you can try haggling.
Discuss time commitments – what are the repercussions if you decide not to go to the store?
Parkson MY and Isetan SG are two examples of department stores.
society SG, Pestle & Mortar MY, and The Goods Dept. ID are examples of multi-label specialty retailer stores.
Keep in mind, however, that unlike the other two, social media lacks a regulated checkout procedure. Customers can place orders by leaving a remark, sending a direct message, or even calling.
In the meanwhile, standardize a process or schedule hourly checks.