Which sales channel really works? My conclusion after 7 years as a dealer!
In the world of retail, there are countless ways to get products to customers. As a retailer, you are spoiled for choice between different sales channels, from physical stores to virtual marketplaces. But which of these channels is really effective and worthwhile in the long term? This question has occupied me again and again during my 7-year journey as a retailer. Should I set up my own store, go to markets, run my own online shop or rely on established platforms?
In this article, I will share my experiences and insights that I have gained over the years. We will look at the pros and cons of each sales channel and hopefully come to a clear conclusion at the end. Because one thing is certain: the right sales channel can make the difference between success and failure in retail!
First of all, I would like to stress that the following section reflects my individual opinion and the tips listed are related to my specific products and preferences. My advice and experiences come from my personal perspective and therefore may not apply to every situation : every retailer has unique challenges and goals and choosing the right sales channel can depend greatly on these factors. Therefore, other retailers may have had different experiences and think differently. Nevertheless, I hope that my findings and insights are useful.
Markets & Fairs - Always a good idea!
From day one, I have sold regularly at markets and trade fairs. At the beginning, it was mainly flea markets and small design markets with a young target group with a preference for individual products. Later, I even exhibited at international trade fairs (Maison & Objet Paris) and took part in renowned market series (Landpartie). Even if the sales did not always meet my expectations, you can benefit immensely from customer feedback and the exchange with other exhibitors!!!
Conclusion:
Flea markets: They are worth it for selling cheaper goods or for regularly selling off slow-selling or rejected items. The stand costs are low, so you can make a lot with relatively little effort!
Design markets/trade fairs: These are the right choice when it comes to testing a concept and building customer relationships! Such events usually have a high entrance fee and ensure that customers spend a lot of time there and take their time to look at what is on offer. The focus is on design and aesthetics - this means that you should plan your setup well and present the products well! If you master this successfully, you can reach a whole new price level and achieve high sales. Note: Where high sales are achieved, the costs are usually proportionally higher! It is essential to create a cost overview in advance. It may also be worth adding scalable new goods as part of the concept - such as beautiful candles, plants, potpourri, etc.
My tip: It helps immensely to have visited the event series or the market beforehand as a customer/observer. This way you can better assess the target group and consider whether the (cost) effort is worth it and whether the product fits into the concept.
The classic shop / store - can quickly become a burden!
In the summer of 2020, after the first wave of Corona, I had the opportunity to open my own store in Aachen. In the euphoria of the summer months (everyone thought Corona was over), I decided to give it a try without much thought. My own store - a dream! In retrospect, a valuable experience, but for various reasons (even without the long lockdown in the following winter and the economic crisis in general) not the right solution for ME. I'll tell you why:
- Extreme inflexibility : opening hours must be adhered to, absences are hardly possible and longer vacations mean a loss of sales or the need for a replacement. I saw the greatest burden in this obligation to always be in the shop. If I was 5 minutes late, it was not uncommon to have to listen to angry customers outside the shop. If I was ever "closed" there was immediately a negative Google review accusing me of never being open. Not being flexible with my hours often stressed me out and often weighed me down.
- Vulnerability : When you sit in the shop, you are basically at the mercy of the public. In addition to nice customers, people also regularly came into the shop who wanted to take out their bad mood on me, told me their life story or even became pushy or malicious when I didn't want to buy something they had found in the basement. Since I was almost always alone in the shop, after a few months I felt really insecure and vulnerable. In the end I didn't want to go to the shop alone anymore.
- Boredom : My shop was close to town but not in the pedestrian zone. It was at the beginning of a residential area, which meant that there were rarely any walk-in customers. You had to have googled the shop beforehand or heard about it. But I had parking spaces and lots of space to offer! It was a real nightmare at the weekend. But since I was also open during the week from Wed to Fri, there was sometimes not much going on apart from purchasing appointments. It was not uncommon for me to sit alone in the shop on rainy days and question the whole business model. You should be prepared for that in the current retail situation!
- High costs and effort : Last but not least, the cost factor (besides the rent!) is of course not unimportant! Shops are expensive and have to be treated like a second home: regular cleaning of the interior and shop windows, cleanliness of the customer toilets, internet and telephone connection as well as alarm system/security must be guaranteed. Heating is required in winter. And it was important to me that my shop did not smell like a junk shop in a very short time. Economically, this is a major cost factor that has to be earned back every month through sales.
My tip: Don't let my personal experience discourage you! Of course, there are also many advantages that I absolutely miss now. One of them is definitely the opportunity to buy! With your own shop, you are regularly offered goods or even given them for free. That was really great. I also miss my favorite regular customers. Although everyone promised to look at the online shop and continue shopping there when the shop closed, they stopped after a very short time. Not all on-site customers are the same as online customers.
Your own online shop - Creative freedom
The year is 2023 - since Corona at the latest, almost EVERYONE has an online shop or at least trades their goods on the Internet via various platforms. Is it a MUST and the big question: is it really worth it? I'll try to approach the topic carefully! First of all: I ran my own online shop from the very beginning - even before I was on the first market or went public. That was important to me. Here I had the freedom to create my own creative space with my aesthetics and my blog. Was that immediately successful? Of course not. Because in the gigantic expanse of the Internet, you are initially invisible. Visibility was and still is the biggest challenge, and one that is not easy to overcome. If you are not an influencer and do not start with a large fan community right away, it is hard! Good photos, reasonable prices and nice texts are not enough. SEO (search engine optimization) plays an important role. But that is only one component of the marketing mix. Your own online shop will only get off to a slow start without the encouragement and links via social media and a regular, personal presence at markets, trade fairs, etc. with reference to your own brand and website. What is really important here is a lot of patience and perseverance!
My tip: Please don't underestimate the bureaucracy! An online shop brings with it a gigantic tail of bureaucracy. I don't want to disillusion you, I just want to point it out. Plan enough time for monthly accounting, as well as customer service, returns management and packaging/shipping. My personal opinion: In terms of effort, having your own online shop is more expensive than any other sales channel - especially if you're as perfectionistic as I am ;-)
Fun Facts: Over the last 7 years I have...
- Changed the shop system 4 times (Jimdo > Squarespace > WooCommerce > Shopify)
- Changed the shop name and thus the domain 3 times (felinevintage.com > aboutthestory.co > livinta.com)
- had a multilingual website & shop
- already used 3 different shop templates on Shopify
- Learned to code: I regularly change the code or rewrite it so that everything visually and functionally corresponds to my ideas
- worked with 2 agencies and 4 photographers - more or less successfully, mainly expensive and unnecessary
- advertised on various channels & burned money
- invested a lot of money in packaging materials, marketing materials and photo equipment, which was definitely worth it!
Conclusion: There is nothing that is set in stone - nothing lasts forever. Everything is changeable and adaptable. Mistakes can be corrected. Wrong decisions are not dramatic! Just do it and get started!
Selling on platforms / marketplaces - low effort for low margins!
I'll keep it short here: Whether it's Etsy, eBay or classified ads - platforms are a good solution for beginners and self-employed people with little time. You can list and sell products quickly and without much effort. The platform does all the work for you. Some even create the shipping label automatically. But so much service also costs money - listing fees, commission and flexibility! You become extremely dependent on the platform, your own brand is rarely visible and you are dependent on visibility within the platform (good reviews, lots of buyers, followers, etc.). In addition, you are of course always under a certain amount of price pressure, as customers have an enormous selection and you have to make a good argument for them to choose you.
My tip: I rarely sell on platforms and only do so when I want to remain anonymous (because the goods don't fit my brand and aesthetics, for example) or when I want to sell bundles to other dealers. That still works quite well for me.
Stand in a junk shop / antique shop - the perfect mix!
Attention: A more detailed article on this topic will be published soon, as we are often asked how exactly the concept works!
First of all: The antique hall, where we currently have a large, permanent stand, is located at the Aachen-Belgium border crossing. This is a great stroke of luck for us, as this type of concept is rather unusual in the rest of Germany and represents a tried and tested business model in Belgium.
Why the Megahalle Hauset is the perfect sales channel in my current situation:
- Relaxed market atmosphere without having to set up/take down every week . The hall is locked and guarded during the week. The stands remain set up and are cordoned off after sales have finished. Traders have fixed places in the hall for months - in good weather, a flea market takes place in front of the hall every Sunday with new traders/private sellers.
- Creative playground : A large stand offers the opportunity to set up a real "shop-in-shop", i.e. my stand, which will soon be 14 meters long and 4 meters deep, is set up and designed like a small store within the hall. I can use my shop name and my own branding and thus form a separate unit within the hall.
- Open Saturdays and Sundays - As a tourist destination with a flea market, the hall has special opening hours, so we can also sell on Sundays. Since my husband and I have permanent jobs during the week, the opportunity to sell on both weekend days without a lot of work is just perfect!
- Dealer community - OK, admittedly it took half a year... but now we dealers are all a team where we help each other out! If we are away on a weekend or are buying goods, our neighbors are happy to take care of the stand. We were also wonderfully represented at our stand on our USA road trip. There is now a great deal of trust and respect! Without the community, the concept would certainly not work so well. Thank you!
- Development potential : Every retailer has the opportunity to develop individually in the hall - you can expand/reduce, change the goods, be inspired by others and also work together/cooperate. There is also the option of pointing to your own online shop, setting up a self-collection option and getting to know the customers better. New goods can be tried out and tested.
My tip: If you are from the Aachen region and are interested in a stand/shop in the Antikhalle Hauset, please feel free to contact me at any time. The hall is growing and is in a constant process of change. The organizers are friendly and are working hard to get the best out of the concept!
Any further questions or tips? Feel free to write to me in the comments or send me an email to felicia@livinta.com!
Good luck and success with your project
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