For many consumer product brands, Amazon is the perfect launching pad. It provides access to millions of potential customers, built-in logistics through Fulfillment by Amazon (FBA), and a relatively low barrier to entry.
However, relying solely on Amazon also comes with challenges. Brands are often exposed to algorithm changes, rising advertising costs, intense competition, and copycat products. As your brand grows, expanding beyond Amazon can help you build a stronger and more sustainable business.
For many product manufacturers, the next logical step is to expand from Amazon to retail stores.
Brick-and-mortar retail gives customers the opportunity to touch, feel, and experience your product in person. It can also increase brand visibility, diversify your revenue streams, and build credibility with consumers.
However, expanding into retail is not as simple as shipping more products to a different address. Retail requires a significant shift in strategy, operations, pricing, and marketing.
In this guide, we will explore the key steps for taking your brand from Amazon success to retail shelves.
1. Determine If Your Brand Is Ready for Retail
Before approaching buyers at major retailers, regional chains, or specialty stores, you need to determine whether your business is ready for the demands of retail.
Success on Amazon does not automatically guarantee success in physical retail.
Evaluate Your Brand Recognition
Do you have a loyal customer base outside of Amazon?
Retailers are more interested in brands that can help drive demand. If most of your sales come from Amazon PPC advertising and you have limited brand awareness outside of the platform, you may need to invest in building your brand first.
Your website, social media channels, email list, and other marketing platforms can all help create an audience that follows your brand across multiple sales channels.
Look for Signs of Customer Demand
Customer demand is another important indicator of retail readiness.
Are customers asking where they can purchase your products in stores? Do you have strong customer reviews? Are customers purchasing from you repeatedly?
Positive reviews, strong repeat purchase rates, and organic brand searches can all indicate that your product may be ready for expansion into retail.
Review Your Financial Position
Retail often involves lower margins than direct-to-consumer sales. Wholesale pricing, retailer margins, distributor fees, promotions, and other costs can significantly impact your profitability.
Cash flow is also important. Many retailers operate on payment terms of 30, 60, or even 90 days. This means you may need to manufacture and ship your products before receiving payment.
Before expanding into retail, make sure you have sufficient working capital to support increased inventory and longer payment cycles.
2. Research the Right Retail Opportunities
Not every retailer is the right fit for every brand.
For example, placing a premium product in a discount retailer may negatively impact your brand positioning. Similarly, a mass-market product may struggle to generate sufficient volume in a small, high-end boutique.
The goal is to identify retailers that align with your:
- Target customer
- Price point
- Brand positioning
- Product category
- Distribution capabilities
- Growth objectives
Visit Retail Stores in Person
One of the best ways to conduct retail market research is to visit stores in person.
Walk the aisles where your product would be sold. Study your competitors. Pay attention to packaging, pricing, product features, and shelf placement.
Ask yourself:
- Who is shopping in this category?
- What is the price point of competing products?
- How is the category organized?
- Where would my product fit on the shelf?
- Is there a gap in the current product assortment?
- Does my product offer something meaningfully different?
This research can help you determine which retail opportunities are worth pursuing.
Do Not Overlook Independent and Regional Retailers
Landing a major national retailer is an exciting milestone. However, smaller regional chains and independent retailers can also provide valuable opportunities.
Starting with smaller retailers can help you:
- Test your retail strategy
- Learn how to manage wholesale orders
- Improve your packaging and merchandising
- Build retail sales history
- Develop case studies and sales data
This experience can make it easier to approach larger retail buyers in the future.
3. Develop a Retail Pricing Strategy
Your Amazon pricing strategy will not necessarily work in retail.
When selling through retail, you need to establish a wholesale price that allows the retailer to achieve its required margin while keeping your final retail price competitive.
Your retail pricing strategy may need to account for:
- Wholesale pricing
- Retailer margins
- Distributor margins
- Freight costs
- Promotional allowances
- Marketing expenses
- Returns and chargebacks
Before approaching retailers, build a detailed pricing model that shows exactly how profitable each sales channel will be.
Avoid Channel Conflict
Channel conflict can become a major issue when expanding from Amazon to retail.
If your product is consistently priced lower on Amazon than in physical stores, retailers may be hesitant to carry your products. Consumers may also choose to purchase online instead of from the retail store.
A well-managed pricing strategy can help maintain consistency across your sales channels.
Many brands also use a Minimum Advertised Price (MAP) policy to help protect their retail partners and reduce price competition between channels.
4. Understand Where Your Product Belongs on the Shelf
Retail buyers need to understand exactly where your product fits within their assortment.
Is your product:
- An impulse purchase?
- A destination product?
- A premium alternative?
- A problem-solving product?
- A seasonal item?
- A category expansion opportunity?
Understanding your product’s role on the shelf will help you create a stronger retail pitch.
It also helps buyers understand why your product deserves space in their store.
5. Build Strong Retail Buyer Relationships
Retail is a relationship-driven business.
Retail buyers are not simply purchasing products. They are deciding whether they want to establish a long-term partnership with your company.
Buyers want to work with brands that are:
- Reliable
- Professional
- Responsive
- Financially stable
- Operationally capable
- Committed to driving sales
When pitching your brand, focus on how you can help the retailer succeed.
Use your Amazon and e-commerce data to demonstrate proven customer demand. Share your sales history, customer reviews, product performance, and marketing plans.
Most importantly, explain how you plan to help drive sales after your product reaches the shelf.
Maintain Consistent Communication
Building a retail relationship does not end after you receive a purchase order.
Retail partners need to know about potential inventory shortages, production delays, shipping issues, and other operational challenges.
The best retail partners communicate proactively. If a problem occurs, address it quickly and provide potential solutions.
Strong communication can help you build trust and create long-term retail relationships.
6. Prepare Your Operations for Retail
Shipping individual products directly to consumers is very different from shipping pallets to a retail distribution center.
Retailers often have strict requirements related to:
- Packaging
- Product labeling
- Carton configurations
- Pallet specifications
- Shipping windows
- Purchase orders
- Routing guides
- EDI requirements
- Compliance documentation
Failing to meet these requirements can lead to chargebacks, delayed shipments, or even lost retail business.
Manage Your Inventory Carefully
Retailers expect brands to maintain sufficient inventory.
Going out of stock can result in lost sales and missed opportunities. In some cases, retailers may also charge penalties for late or incomplete shipments.
Before entering retail, make sure your production and inventory systems can support larger purchase orders and increased demand.
Consider a Retail-Experienced 3PL
A third-party logistics provider (3PL) with retail experience can help manage the complexities of wholesale fulfillment.
An experienced 3PL may be able to help with:
- Retail compliance
- Pallet configuration
- Labeling
- Routing requirements
- Wholesale order fulfillment
- Inventory management
The right logistics partner can make the transition from e-commerce to retail significantly easier.
Evaluate Your Staffing Needs
As your retail business grows, you may need additional support.
This could include:
- A wholesale account manager
- A retail sales representative
- A retail broker
- An operations manager
- A customer service team
Managing retail accounts requires time and attention. Make sure you have the resources necessary to support your retail partners.
7. Create a Retail Marketing Strategy
Getting your product on the shelf is only half the battle.
The next challenge is getting customers to purchase it.
Retailers want to see strong sales velocity. You cannot rely solely on a retailer’s existing foot traffic to sell your products.
Your brand needs to help drive demand.
Connect Your Online and Offline Marketing
Your existing digital audience can help support your retail expansion.
When your product becomes available in stores, update your website and marketing channels to let customers know where they can purchase it.
Consider using:
- A store locator on your website
- Email marketing
- Social media announcements
- Geo-targeted advertising
- Influencer marketing
- Digital advertising
- Retailer-specific promotions
For example, if your product becomes available at a retailer in a specific market, you can run targeted advertising to consumers in that geographic area.
This creates a connection between your online audience and your physical retail presence.
Consider In-Store Promotions
Retail promotions can also help drive trial and sales.
Depending on the retailer and your product category, opportunities may include:
- Temporary price reductions
- End-cap displays
- In-store demonstrations
- Retailer advertising
- Seasonal promotions
- Sampling or product demonstrations
The goal is to help your product stand out and encourage customers to make their first purchase.
8. Build an Omnichannel Retail Strategy
Expanding from Amazon to physical retail does not mean abandoning e-commerce.
In fact, your Amazon and D2C channels can support your retail strategy.
Consumers may discover your brand on Amazon, research your product on your website, see it in a store, and ultimately purchase through another channel.
This is the power of an omnichannel strategy.
Each sales channel should support the others while giving consumers multiple ways to discover and purchase your products.
The strongest brands understand that Amazon, D2C, brick-and-mortar retail, marketplaces, and other channels can work together as part of a broader growth strategy.
Expand Beyond Amazon and Grow Your Retail Brand
Expanding from Amazon to retail shelves can be a challenging but highly rewarding process.
It requires more than simply finding a buyer and shipping products to a store. Successful retail expansion requires careful planning, competitive pricing, strong operations, effective marketing, and long-term retailer relationships.
However, the potential benefits are significant.
Expanding into retail can help your brand:
- Increase brand visibility
- Reach new customers
- Diversify revenue
- Build credibility
- Reduce dependence on a single sales channel
- Create a stronger omnichannel business
If you have successfully built your brand on Amazon, the next opportunity may be waiting on the physical retail shelf.
The key is to prepare your business for the demands of retail before you begin approaching buyers.
Ready to Expand From Amazon to Retail?
At Retailbound, we help innovative product brands launch and grow across retail channels, including brick-and-mortar stores, online marketplaces, catalog, and TV direct response.
For more than 20 years, our team has helped hundreds of product brands navigate retail strategy, buyer relationships, sales management, distribution, and channel marketing.
Whether you are an established Amazon seller or an emerging product brand preparing for your first retail launch, we can help you develop a strategy to expand beyond e-commerce.
If you’re ready to bring your product into major retailers but need help navigating the process, Retailbound can guide you every step of the way. Schedule a free consultation with one of our retail experts and discover how to get your product retail-ready, connect with the right buyers, and drive long-term retail growth.
About the Author
Yohan Jacob is the President and Founder of Retailbound, a retail channel management consultancy that helps innovative product brands launch and grow across retail channels in the United States and Canada.
