Being able to sell your products through a reliable retailer is a good option to do if you are aiming to reach customers and prospects effectively. This is also very helpful if you are planning to expand your operations or looking for larger audiences in order to increase the size of your sales. So for business owners to get the customers that they need, a retail distribution strategy is an efficient way to take while being able to conserve your resources.
What is a Retail Store?
By definition, a retail store or outlet is a place of business that is usually owned or operated by a retailer. However, it could also be sometimes owned and operated by the manufacturer. This is where the merchandise is placed and sold primarily to targeted customers.
Retailing, on the other hand, is the process of selling a merchandise to the consumer in small quantities. It is the retailers who sell the products to end consumers in small units or depending on their needs.
Types of Retail Stores
Now before you decide on the authorized retailer you would like to work with, it is important that you know the different types of retail stores. By doing so, you can choose a location or setup that suits your products best. Here are the different types to choose from:
- E-tailers or online stores – are actually online retailers that sell various products online. These purchased products are then delivered to your doorstep. They are found online and among the most popular stores that sell online are Amazon and Etsy but there are lots of smaller online stores in between.
- Department stores – are perhaps the oldest place where consumers shop for different items and products in one setup. They are also the largest type of retail stores where people go shopping.
- Discount stores – are department stores with stocks that are discounted or sold at lower prices.
- Big Box stores – are stores that specialize in one type of product like shoes, electronics and the likes. Their products can also range from clothing, makeup to bathroom and toiletries.
- Mom-and-Pop stores – are usually smaller and are also run by small business owners. These are generally your favorite corner stores within the neighborhood.
- Warehouse stores – are warehouses that require membership to those who are interested in order to get member’s only discounted prices.
What are the advantages of using authorized retailers?
You can enjoy many benefits when you create a list of authorized retailers. For example, customer rates are among the many advantages of using authorized retail stores may it be online or ones with physical stores. Customer rates are higher than expected and you have exclusivity with the retailer. You can also have the following advantages:
They have established customer base
This is probably the most important advantage that you can benefit from authorized distributors. A trusted retailer already has good relationships with other customers. A trusted retailer can easily promote it and the seller can start generating sales the moment the distributor distributes the products.
They know how to sell
Selling your products through online retail stores places your items in a better market as retailers know how to sell products effectively. They are trained on how to promote and how to sell your items. It’s like having a sales team of your own but how they sell it will rely on the services they provide. So you are basically dependent on the retailer to provide the best services so they can continue buying your products.
They use marketing as part of their strategy
Retail stores know what the people need and they can provide you with the best marketing strategies to increase sales and selling through a retailer can boost your marketing campaigns without spending too much. It is their job to tell prospects and customers about your products thus helping in increasing your sales in the future.
They already have an established and quicker route to market your products
This means that they have the ways to put your products on the market in the most efficient way. Knowing the route to go and the areas where your products can be sold easily is important.
They already know their customers
Authorized retailers are experienced in dealing with customers. This means that they know how to handle a product and provide the services needed, where to sell it and who to sell it to based on their customers. They know how to promote it in the most effective way to maximize sales results.
They can broaden your retail sales
Let’s face it, finding and selling to retail customers can be pretty expensive. Advertising alone can be a tough task for the manufacturer alone but when you are using an authorized retailer, the work is lessened. With their skills and experience, finding the right location can definitely help in exposing your items.
They provide the customer services
As the manufacturer of a product or services; it is your duty to turn over the administration of customer services to your authorized retailer. This helps reduce the manufacturer’s need to invest in such areas as they will only have to deal with the distributors while the distributors are the ones to deal with customers. This lessens the administrative duties of the manufacturer and at the same time lowers the cost of operation.
Selling products can be a heavy task especially if you are still finding momentum with your business. The best way to go is to find the right retailer that can help you get results and increase sales. Should you start putting together a list of authorized retailers? Of course! This could help you a lot especially if you have invested heavily in the products you are selling. Find authorized retailers that are trusted by other manufacturers. An authorized retailer that has an impressive record is always a good start. Make sure also that you provide a contract of agreement when dealing with them as this will help ensure your products are in good hands. And if you can find the right people to work with, it will be an investment worth taking!