It’s always better to be short on stock and notify a client that you have sold out (so the products are in demand) than have an excessive (that contributes to financial losses).
Know Your Audience
As a merchant, you will need to understand who your clients are before choosing stock.
There are two ways to start doing it. In case you have an established, engaged community, you may use your ability to influence customer decisions. If that’s the situation, you can sell everything you like, and your customers will believe that your goods are exactly what they need.
But if you do not have a following, use another strategy. Select your target clients first and then select your stock. Learn about their needs and preferences. Cater to what they need.
Many retailers have gone out of business since they purchased inventory they liked and expected that shoppers want them, too. As an example, I recently got a call from a prospective customer who sells luxury, high-end clothes. The customer wanted to”find a target market.” This is a massive fashion company who’s willing to pay major bucks. It created a luxury clothing line as it’s”beautiful” without knowing who’d purchase it.
While working for internet style marketplaces, I observed that boutiques bought entirely different (contradictory) lines. This indicated they weren’t sure what their customers enjoy, or perhaps didn’t understand who their clients were in the first location.
Client personas can help. Using personas, retailers can slice and dice their audience by age, race, style, income, interests, and some additional standards. Then, having established personas, retailers must make certain that all of their product appeals to that section of shoppers. All product lines should mix, match, and appeal to the same customer segment. By way of instance, merchants that sell and sizes should select junior or missy and modern or edge. From this decision, merchants can select the rest of the collection, such as accessories and handbags.
Leave generic goods — things that shoppers can easily find elsewhere — to larger retailers with significant advertising budgets and other sources.
Where to Source
In my experience, finding trusted suppliers involves assessing many choices until you decide who is ideal for you.
Merchants who prefer feeling and touching during the purchasing process should think about trade shows or approaching the producers directly.
Wholesale, online marketplaces are a fantastic means of finding merchandise. You can store dozens of vendors at exactly the exact same time without leaving your office. Five of my favourite online marketplaces are as follows.
- FashionDomino.com is a newer player. It focuses on smaller providers and retailers, providing over 200 collections (and growing). The product is diverse. The website offers many discounts and free shipping with no minimum.
- LAShowroom.com is the first marketplace geared towards all sort of retailers. It’s around 600 style vendors.
- FashionGo.net is the largest online fashion marketplace with approximately 1,000 vendors. The website provides a wide selection, but it is too big for smaller companies, in my experience.
- TopTenWholesale.com is the top non-transactional wholesale platform for fashion, lifestyle, and other providers. Additionally, it holds an annual trade show in Miami.
- JoorAccess.com is a fantastic option for sourcing brand styles. However, it is difficult for retailers to join without having accounts with three or more significant brands.
For physical, brick-and-mortar marketplaces, LA Fashion District and San Pedro Wholesale Mart (for quick fashion items) are excellent sourcing options if you reside in Southern California or may travel there.
It is apparently compulsory for American merchants to provide sales during the Thanksgiving weekend.
Australian customers have long been conscious of U.S. deals to be had around Black Friday and Cyber Monday. They either make the most of their sales with the merchants that provide international delivery or use U.S. email forwarding services like MyUS.com and USGoBuy.
Australian retailers have awakened to the flow, if not the river, of earnings going into the U.S. in late November. In recent decades, many have begun to conduct their own promotions to coincide with Black Friday.
But I will not be among them. Here’s why.
No Black Friday sales: 6 motives
Trains shoppers to anticipate low prices. Repeat customers buy items on sale, which reduces my gain and eliminates their need to get the things again or for some time.
New customers who buy during Black Friday and Cyber Monday set expectations which the items should be priced that way at all times.
Trains shoppers to anticipate another sale. On my previous ecommerce website, I ran my first sale for Valentines Day 2007. I was amazed at the response. It provided a huge injection of revenue. I was hooked and thought I needed to do create more revenue was supposed to run more sales.
In February 2013, 1 repeat customer explained that she”would await another sale.”
I ran the next — and final — sale at April 2013 before Mother’s Day. Not only did she not purchase, but I also had the lowest response rate . The lack of gain was the primary reason I shut down that site two months later.
Clearance sale only. Another reason I do not have Black Friday and Cyber Monday sales is I have a permanent”Sale” tab on my website.
Those things are stopped, ex-rental, end of year, or no longer fit my product range (like the wedding market, which I no longer aim ). I won’t ever provide those pieces again. I am pleased to offer them at a lower price.
Unique items. Many retailers sell items which are easily available elsewhere. They compete on price, shipping, and place. A Black Friday and Cyber Monday sale strengthens the perception that those items are commodities.
However, I specialize in selling and leasing decorative products that are unusual, one-of-a-kind, handmade, market, or eye-catching. They aren’t garden-variety décor. It’s therefore hard for shoppers to compare prices. Thus if they enjoy the product and need to purchase or rent it, they’ll spend the cash.
Brand positioning. It takes some time to position a company in the middle-to-upper end of the market. None of my high-end opponents indulge in Black Friday and Cyber Monday sales. I am following suit.
Peak entertaining season. The last quarter of the year is typically the greatest in earnings for global retail. It is the”gold quarter.”
Additionally, it coincides with the peak-entertaining season in Australia as customers purchase or lease décor for spring and summertime corporate events, weddings, private parties, and Christmas.
This quarter helps me build profits and customer relationships. During the fourth quarter, I set the direction for the company and identify products to offer. The last thing I want is for customers to use a Black Friday sale as their pricing anticipation for 2019.