Recharging the enthusiasm of your gift shop business, one connection at a time...
The Ultimate Guide to Finding and
Vetting Vendors for Busy Gift Shop Owners
When it comes to finding reliable and trustworthy vendors in a short amount of time, gift shop owners often face a challenging task. We all start our shop with a vision of curated collections that wow our customers.
We don’t consider ourselves picky, just intentional about the products we choose. And it always takes so much longer than we expect! Limited time and resources make it difficult to research and vet vendors thoroughly, and the risk of choosing the wrong vendor can be costly.
There are several approaches that retailers can take to make this process easier and more effective. In this article, we will explore some of the tips and tricks for finding quality vendors with little risk and negotiating favorable terms and pricing.
Shopping on wholesale platforms for good vendors
There are established wholesale platforms like Faire, Tundra, HelloAbound and Handshake that can help ease some of the concerns a retailer may have about working with new vendors.
By partnering with a platform like this, you can explore a wide range of products from different vendors, all with the added assurance of favorable terms, clear return policies, and even insurance to cover those pesky delivery mishaps. Plus, ordering through a platform can often mean lower shipping fees and lower minimum order quantities.
It's a win-win situation that makes the whole process much smoother and less stressful for both retailers and vendors.
Do keep in mind that vendors pay a considerable amount of fees on these platforms (up to 25% of their wholesale price) which often leaves them with little or no profit. You may notice their prices are higher on these platforms than on their own website in order to cover these fees. If you find a vendor you'd like to work with, consider these factors before deciding to order through a third party service or the vendor's own website.
Joining groups to get curated lists of vetted suppliers
One approach that many retailers find useful is to join groups that curate lists of vendors. These groups can be found on social media platforms like Facebook or LinkedIn, and they can provide retailers with valuable resources for finding quality vendors.
For example, many groups have a list of vendors that have been vetted and approved by the group's administrators. By joining these groups, retailers can access these lists and choose vendors they know retailers have had good experiences with over time.
A few that are specific to the boutique industry include Instant Boss, The Boutique Hub, and The Hive.* Each of these have vetted vendors and can narrow down the time spent as you do your product research.
Searching by seller awards & ratings when searching for product vendors
Another approach that retailers can take is to search for vendors on wholesale platforms that have received seller awards or high ratings from other retailers. For example, on platforms like Faire and Etsy, vendors can be sorted by a "star seller" kind of rating that means they have reached specific customer service and product rating goals.
By choosing vendors that have received these awards and high ratings, retailers can be more confident that they are working with reliable and trustworthy vendors.
If you are willing to work with a new vendor, wholesale platforms often highlight these vendors and give them more visibility. Oftentimes these vendors are not new to wholesale, they are just new to the platform. If you have any concerns, search out their own website or ask them for recommendations from other retailers.
"The search for new vendors is a never-ending journey that can lead to unexpected and amazing finds. Keep exploring and let the magic unfold."
Lisa Copen
Watching vendor videos and building a personal connection
An effective way to find quality vendors is to watch vendor videos and get to know them personally. Many vendors create videos that showcase their products, their production process, and their company culture.
See if they have product videos on their website, an "about us" video, or visit their social media. Not every vendor is active on TikTok or YouTube but if a vendor is, you can get a definite feel for their company culture and their personal investment in their company in just a few minutes.
By watching these videos and getting to know the vendors personally, retailers can build a personal connection with them and develop a sense of trust and reliability.
This personal connection can be invaluable when it comes to negotiating favorable terms and pricing, as well as building a long-term relationship with the vendor.
Case study of a vendor & retailer relationship:
Building a successful relationship with a vendor
To illustrate these approaches in action, let's take a look at a case study of a gift shop owner who built a successful relationship with a vendor.
The gift shop owner, Sarah, was looking for a new vendor to supply her shop with handmade candles. She searched online and found a vendor who had received high ratings and positive feedback from other retailers.
Sarah reached out to the vendor and watched their video, which showcased their production process and their commitment to using all-natural ingredients. She was impressed by the vendor's attention to detail ad their commitment to sustainability.
After filling out the online wholesale application, Sarah received a SMS confirmation message immediately which impressed her with the vendor's attention to the details. Sarah felt confident in placing her first order with the vendor. The vendor offered a competitive price and favorable terms, and the order was delivered on time and in excellent condition.
Over time, Sarah continued to work with the vendor and built a personal relationship with them. When she mentioned she was traveling to a town nearby they invited her to visit their workshop and she was able to also participate in giving feedback on some of their new candle scents.
Thanks to this successful relationship, Sarah was eager to share more of their story when her customers started smelling the different candles because she had a personal story. Sarah's gift shop has become known for its high-quality handmade candles, and the vendor has grown their business by expanding their customer base.
Attending trade shows to discover new vendors & suppliers
Attending trade shows and markets is an excellent way for retailers and vendors to connect and build mutually beneficial relationships. Here are 4 ways both parties can benefit:
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Personal Connection: Meeting face-to-face at a trade show can help retailers and vendors establish a personal connection. This interaction can be essential in building a relationship based on trust and can also help retailers feel more confident about the vendor's business practices.
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Product Evaluation: Trade shows provide retailers with the opportunity to view products firsthand and assess their quality. The vendor may show the process of making a handmade item (live or on video) and is available to share about how the benefits of their product aligns with the needs of your customers. There is nothing like holding the product in your hand before deciding if it's a product you wish to carry.
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Negotiate Favorable Terms: Trade shows offer an opportunity for retailers and vendors to negotiate favorable terms. Retailers can ask for discounted prices, reduced minimum order quantities, or extended payment terms. Vendors, in turn, can discuss their production capabilities and lead times to help retailers plan their inventory better.
Collaborate on Marketing: Retailers and vendors can collaborate on marketing efforts to help promote products and increase sales. For instance, retailers can offer to feature a vendor's product in their store displays, while vendors can offer to create marketing materials for the retailers to use in their advertising campaigns.
Overall, attending trade shows and markets can be an effective way for retailers to vet potential vendors and establish long-lasting relationships.
The changing landscape of boutique & vendor culture
The world of boutique and vendor culture has changed dramatically in recent years, with many retailers cutting traveling expenses and now embracing the convenience of purchasing through wholesale platforms like Faire, Hello Abound, and Tundra for example.
While this has made it easier for retailers to find and connect with vendors, it has also made it more challenging to build personal relationships and establish trust.
However, by following the tips and tricks outlined in this article, retailers can still find quality vendors with little risk and negotiate favorable terms and pricing. By joining curated groups, searching by seller awards and ratings, and building personal connections with vendors, retailers can build successful and profitable relationships with vendors that will benefit their business for years to come.
In addition, retailers can also reach out to industry associations for recommendations. These associations often have a list of trusted vendors and can provide valuable insights and information on industry trends. By leveraging these resources, retailers can quickly identify and connect with reliable and trustworthy vendors.
Here are 6 tips for thoroughly vetting vendors for your gift shop:
Check their website and social media pages: Visit the vendor's website and social media pages to learn more about their brand and products. Look for information on their production processes, quality standards, and shipping policies.
Read reviews: Read reviews from other retailers who have worked with the vendor. This can give you an idea of their customer service, product quality, and reliability.
Ask for references: Ask the vendor for references from other retailers they have worked with. This can help you get a better sense of their professionalism and ability to deliver on their promises.
Ask about production processes and lead times: Ask the vendor about their production processes, lead times, and shipping policies. This can help you ensure that they are a good fit for your business and that they can meet your needs.
Evaluate pricing and terms: Carefully evaluate the vendor's pricing and terms to ensure that they are reasonable and fair. Look for any hidden fees or charges, and make sure that the terms are clear and easy to understand.
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Ask for a quick phone call with the vendor. Hearing one's voice and having a 10-minute conversation can take your relationship to the next level and give you a better sense of their communication style and professionalism. It's a small step that can make a big difference in the long run.
Building a strong relationship with a vendor takes time and effort, but it can be incredibly beneficial for both parties. By working together, retailers and vendors can develop products and strategies that help to grow their businesses and stay ahead of the competition.
Conclusion
In today's boutique/vendor culture, there are many platforms available for retailers to find and connect with vendors. While these platforms offer a convenient way to purchase products, there is less opportunity for personal connection compared to in-person meetings or trade shows. However, retailers can still leverage these platforms by watching vendor videos, reading their about pages, and connecting on social media.
In recent years, there has been a significant shift towards purchasing on wholesale platforms. According to a recent survey by Faire, a popular wholesale platform, 87% of retailers now purchase products on wholesale platforms compared to just 56% five years ago. This shift has been accelerated by the pandemic, as more retailers are turning to online platforms to source products.
Overall, finding reliable and trustworthy vendors in a limited amount of time can be a challenge for gift shop owners. However, by leveraging industry resources, attending trade shows and markets, and thoroughly vetting potential vendors, retailers can quickly identify and connect with valued vendors. Building a strong relationship with a vendor takes time and effort, but it can be incredibly beneficial for both parties.
With years of experience from gift shop management and merchandising to her own jewelry business as a retailer and wholesale vendor, Lisa Copen understands what it takes to succeed in the retail industry. She founded Gift Shop Owners Connection to share her knowledge and support fellow boutique owners in their business endeavors.
*Disclosure: Some of the links on this website are affiliate links, which means that I may earn a commission if you click on the link or make a purchase using the link. When you make a purchase, the price you pay will be the same whether you use the affiliate link or go directly to the vendor’s website using a non-affiliate link. By using the affiliate links, you are helping support the Gift Shop Owner Connection, and I genuinely appreciate your support.