FAQ for Selling to Retailers in the USA Everything You Need to Know

Initially, you can expect to receive a few emails per day during the first few months.

Once a buyer expresses interest, such as by asking for more information or samples, you’ll be CC’d and can respond. Emails come from our team, and we also alert you about them in our WhatsApp group.

The wholesale price is typically 40-50% of the MSRP, or 25-30% for off-price retailers such as TJX.

Yes, the shipping price are not included in the price we quote to the retailers.

We offer our sales service based on three layers of sales. First, our close contacts (more than 3000 buyers, category managers, etc.). Second, our team approaches special channels like marketplaces, media companies, subscription boxes, magazines, and TV segments. Third, we run an operation of getting new prospects that fit your brand, emailing them (thousands a day), and following up. Throughout the life of a business relationship, we are always working as a team. Sometimes it requires you to respond or act (samples, fulfill orders, setting up as a vendor, etc.), and sometimes we respond on your behalf.

Ten retail accounts active and ordering is quite a lot. Working with 3-5 of them is usually a lot to handle, and so 3-5 retailers will take around an hour a day, or less, depending on the day, the type of retailers, and the efficiency of the person handling them.

We charge a commission of 10%, but we are flexible and can lower our commission down to 5% if the vendor sells for a lower wholesale price than expected. If your cost of goods (LDP) is more than half of the wholesale price, then we will need to work together to define a commission rate that works for both sides.

MSRP should be around twice of WSP (landed in USA warehouse), while WSP should be around twice of LDP. This is the bench mark.

No, you need to have a branded website that clearly showcases your products and establishes your brand’s authenticity. You want to show that there is a real company behind that brand, not just buying from a factory and selling on Amazon.

Quick research on retailers’ marketplace will help you understand if there’s potential. As long as your products are not “more of the same” and are unique and designed, there is normally space for them. For patent products, there is almost always a great demand, what we call: “white space”.

There are nearly 30,000 retailers in the USA, ranging from small ones with 30-40 stores to large retailers with over 13,000 stores. In total, there are almost 3 million physical stores in the USA.

Different retailers order different volumes. For example, off-price retailers like TJX may order a test order of 300-600 units per SKU. Once the product is selling well in the stores, they will order massive units by the thousands. Other retailers like Nordstrom may take more risks and order thousands right from the beginning if they like the product. They know how to predict SKUs and sales.

The fastest we have seen so far is 4 weeks, while with other brands it took a year or so. When a retailer like Costco is interested in your products, the process is slow, but the volume is huge. They would not bring in small quantities of anything, only big volumes. However, when a retailer like Tuesday Morning is interested, the process is usually quite fast. They can set you up in their system within days, and then you are ready to sell to them.

We work with over 300 retailers, while we have access to thousands. Among the 300 are Macy’s, Bloomingdale’s, Nordstrom, TJX, Marshalls, Tractor Supply, CVS, Walmart, Costco, Bed Bath and Beyond, BassPro, London Drugs, Dick Sporting Goods, Academy Sports, Bi-Mart, Kmart, BestBuy, Home Depot, Family Dollar, Office Depot, Dollar General, 99 Only, Bealls of Florida, HEB, Burlington, and many more.

We will find the proper retailers that fit. We had a CBD brand come aboard a few months ago, and we found a huge market that we were not aware of.

Communicating with buyers is just like chatting with anyone else. They usually make it clear and easy on the questions they ask and info they want. You can feel comfortable going on a zoom call with buyers. They are nice and easy going. They typically ask you to tell your brand story, pricing, and where you currently sell. You don’t need to specify Amazon, but you can say it sells on marketplaces and on your website, while currently, you are heading with the brand to the brick and mortar channels. They want to hear passionate people talk about their brand and products. They want to see that you are “into it”.

Costs are as follows: Website – $500-1000 if you don’t already have one; E-catalog – $150-450; Packaging – if you need to create good packaging, it depends on the case, and you should check with your manufacturer. You DO NOT need a full production with the new packaging if you created one, you just need for the first step to have about 20 units.

While you can use GS1 barcodes from cheaper sources like speedybarcode, it’s always better to use the official GS1 platform to obtain your UPCs.

Retailers typically don’t work by consignment, so once they buy merchandise, it’s on them to sell it.

Ensure your packaging has a large image, minimal text, compliance information on the side, and preferably a white background with examples.

It can be either the retailer or you, but freight is calculated separately from the prices you quote. Some retailers may direct you to their preferred forwarder, while others will have you ship it yourself.

Having a clear PDF catalog with basic SKU specifications, lifestyle images, wholesale and retail prices, and one opening and closing page is very helpful. Ideally, each product should have its own page, and you should limit your catalog to around 20-30 SKUs.

Typically, there is an allowance for 1-2% defective products. If more than that is found, the retailer will offer to return them to you or scrap them, and in both cases, you will need to deduct the cost from your invoice when payment comes.

Chargebacks occur when a vendor skips steps in the retailer’s regulations, such as missing UPCs. The retailer will send a chargeback, which will be deducted from the total amount owed.

Yes, for products related to children and electricity.

Retailers tend to go step by step to avoid unexpected issues with vendors. If you receive a large order initially, you can always finance it with a factor company, your bank, or your supplier, if they are willing.

No, you must ship from your warehouse in the USA to the retailer’s DC (distribution center).

Specialty stores are standalone stores that usually have between 1-5 locations in one country in the USA. Most cases, they are run by a family or friends.

Yes, samples are necessary, as buyers want to see and touch the products before placing orders.

MAP stands for Minimum Advertised Price, which is the minimum price set for your SKUs, below which retailers are not allowed to sell. You don’t have to set a MAP, but it’s optional.

IMU stands for Initial Mark Up, which is how retailers calculate their profit.

No, if you set a retail price, and that’s the price the retailer sells your product to consumers, you cannot sell it for less on your platforms, as that will negatively impact the retailer’s business.

The buyer will typically send files for you to fill in, and in some cases, you will need to have an EDI software to receive orders

Getting your first order from a retailer involves setting up your EDI if needed, receiving an official PO, and sending an invoice.

Most retailers pay NET +, which means that you ship the goods and wait between 15-60 days for payment, depending on the retailer.

Research your competitors and identify similar retailers that you can approach. Knowing your product categories can also help you narrow down your search.

We recommend using software to identify prospects and reaching out to them via email. You can also visit physical retail stores with product samples to get started

Proposition 65 requires warnings for significant exposures to chemicals that cause cancer, birth defects, or other reproductive harm for products sold in California. Compliance with UL requirements is not necessary. Make sure to research any laws that may affect your specific product categories.

Yes, you can still sell to retailers in the US as a non-US company.

Your mindset can be the biggest obstacle. Break down the process into manageable steps, such as checking packaging, building your catalog, and setting up your emails. Start with one step at a time to overcome the intimidation of the process.