Prove demand before you pitch
Buyers want evidence that your product sells. Sales through your own website, markets or a few local shops are the strongest proof you can offer.
Retail buyers risk shelf space on every item. They will ask who your customers are and how fast the product moves. Gather what you have:
- Sales history and repeat purchase rates from direct channels
- Reviews and customer feedback
- Photos of local retail placement and in-store results
- Social following or email list, if relevant
Start with a few independent local stores. Their feedback is quick, and results from a small test give you a story for larger buyers. Our guide on launching a brand covers building early traction.
Get your pricing and margins right
Work backward from the shelf price. Retailers typically need a margin on every unit, and a distributor may need one too, so your wholesale price must leave room for your own profit.
Illustrative example of a price chain for a product with a $20 shelf price:
| Step | Price | Margin kept |
|---|---|---|
| Retail shelf price | $20.00 | Retailer keeps $8.00 (40%) |
| Your wholesale price | $12.00 | You keep $4.00 after $8.00 cost |
If you add a distributor who takes a share, your price drops, so your cost of goods must be low enough. Retail margin expectations vary by category, so ask buyers and check industry sources.
Compare against your own direct sales margin. Use our guides to calculate cost of goods sold and price your products.
Prepare the product and the paperwork
Stores need barcodes, compliant labels, consistent packaging, product specs and insurance. Missing details can delay or kill a deal.
Before approaching buyers, prepare a retail-ready kit:
- Barcodes. Most retailers require UPC barcodes, obtained through GS1.
- Labels and packaging. Meet legal labeling rules for your category, such as food, cosmetics or children's products.
- Line sheet. A one-page list of products, sizes, wholesale prices, case packs and minimums.
- Insurance. Many retailers want product liability coverage. See types of business insurance.
- Samples and photos. High-quality images and a physical sample.
Regulated products may need testing or licenses. Check the relevant agencies for your category.
Choose the right channel and find the buyer
Options include independent shops, regional chains, national retailers, distributors, trade shows and online marketplaces. Start where your customer already shops.
Match the channel to your size.
- Independent retailers. Lowest barrier, flexible terms, small orders.
- Regional chains. Local brands often get a chance, with moderate volume.
- Distributors and wholesalers. Handle sales and logistics for a margin.
- National chains. Large volume, strict requirements and long timelines.
- Trade shows. Meet many buyers in a few days.
Find buyers through store websites, trade association directories, LinkedIn and show attendee lists. Send a concise note with your line sheet and an offer to send samples. Follow up politely. For online options see our guide on social platforms for small business, which can support a launch.
Make the pitch
Lead with who buys your product, why it fits that store's shoppers, and how it will sell. Offer a simple first order and support.
Buyers decide quickly. Keep your pitch short:
- One sentence describing the product and customer
- Evidence of sales and reviews
- Price, margin and minimum order
- Your marketing support, such as social posts, demos or signage
- Delivery lead time and reorder process
Offer a low-risk starter order, and ask what the buyer needs to say yes. Learn how to state your value proposition and prepare using the guide to pitching. Expect some noes. Treat each as feedback.
Understand the terms before you accept
Check payment terms, returns, markdowns, chargebacks and exclusivity. Retail terms can leave you waiting months for cash.
Common terms include net 30 to net 60 payment, but some retailers pay slower. Others ask for consignment, where you are paid only when items sell. Look for:
- Return and markdown allowances
- Slotting or placement fees
- Chargebacks for late or incorrect shipments
- Freight responsibility
- Exclusivity or territory limits
Write down the full cost of the relationship. Read the contract with an attorney if the order is large. Our contract negotiation tips can help.
Fund the first big purchase order
A large order means paying for materials and labor now and collecting weeks later. Calculate the cash gap and secure funding before you accept.
Illustrative example: a retailer orders 5,000 units at $12, a $60,000 invoice payable in 45 days. Your cost is $8 per unit, or $40,000, and you must pay suppliers in advance. Your cash gap is $40,000 for roughly 60 to 90 days including production. Profit is $20,000.
If financing costs $5,000 for the period, the order still earns $15,000. Check it with our inventory funding payback math.
Options include working capital and a line of credit. ROI Funder considers 500+ FICO, 6+ months in business and $20,000+ monthly revenue. Invoice financing is not a product ROI Funder places, so compare total cost on the products available. Read how the cash conversion cycle applies.
Frequently asked questions
Do I need a distributor to get into stores?
Not always. Many small brands start by selling directly to independent shops. Larger chains often prefer distributors.
What margin do retailers expect?
It varies by category. Ask buyers directly and check industry sources, then work backward from the shelf price.
Do I need a barcode?
Most retailers require a UPC barcode, which you obtain through GS1.
How can I afford a large first order?
Calculate the cash gap between paying for production and getting paid, then fund it with savings, supplier terms or financing if the profit exceeds the cost.