Jun. 24, 2024
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We write a lot about how to design and create successful POP display programs. A successful POP display will not only drive product sales, but it will create brand awareness which will increase both brick and mortar sales as well as online sales. But what about when point of purchase displays fail? Examining the most common examples of failure of ineffective retail display programs can help brands and retailers avoid these typical pitfalls and increase their chance of success.
Let&#;s look at 10 examples of the most common reasons point of purchase display programs are ineffective.
1. Visually Unremarkable
Effective visual merchandising is all about creating appeal sufficient to capture a shopper&#;s attention in a crowded, noisy retail landscape. If a display does not stand out, if it is not attractive, and if it is simply visually underwhelming, chances are it won&#;t captivate a consumer and will fail to do its job as a silent salesman for the product or brand. This tends to happen most often when a company does not spend the time necessary to engage in a thoughtful design process or if it thinks it can save money by having its supplier&#;s sister factory in China come up with a display. Here&#;s an example of an ineffective retail display that might be functional but does not really pass the test of being visually appealing.
2. Uneconomical
Displays that are too expensive relative to the value of the product or relative to the expected sales the display can generate are doomed to failure. A significant percentage of our customers have no idea about what the budget should be for their display program. They have not done the math to figure out how much product they would need to sell to pay for the display or get a positive return on investment. Without this upfront analysis, it is easy to waste design time or end up with a display that makes no economic sense. We recently got an inquiry for a postcard display that was designed to hold a minimum of 20 postcards. The design firm that did the work provided a bill of materials that was over $600 per display. It was pretty easy to determine that the design was a non-starter.
3. Lame Messaging/Branding
Lame messaging/branding typically takes two forms. First, it can be non-existent or simply not impactful. We see this in cases in which customers skimp on the graphics of a display to save money or when the graphics don&#;t do the job of explaining what the product does.
The second case is when a brand tries to communicate too much. Some companies are so in love with their product that they feel compelled to list all 12 features and benefits, often forgetting the customer will likely only spend a few seconds reading the text on their display.
4. Inadequate Packaging
One of the surest ways to guarantee failure of a POP display is to have it show up damaged. This is a no-brainer, but a surprising number of customers consider packaging an afterthought and most have no idea or what proper packaging really costs. In our experience, freight companies tend to be fairly careless, and even if something is packed well, it can show up damaged. This can also be true for displays that are shipped on pallets, particularly if the shipment is cross-docked. In most cases, the failure of inadequate packaging can be avoided if packaging is considered part of the design process and if a company is willing to invest in the packaging in the same way that it invests in a display.
5. Poor Serviceability
POP display stands for products that are difficult to service can be one of the causes of an ineffective retail display program. Poor serviceability can take several forms. First, the display can simply be difficult to clean. A sunglass display with a black base can show dust really quickly, for example. Or, a display that has lots of nooks and crannies can be a magnet for dirt and might start to look bad in no time.
Second, a lot of shoppers are very conscientious about putting merchandise back neatly. So, a display that has caps sitting on a shelf, for example, is likely to be in disarray by the end of a busy shopping day, whereas a display that features organizing cap pockets provides a call to the consumer to put the caps back in an organized fashion.
Third, some customers think it is a great idea to include a brochure holder on a display to provide the shopper with more information about how great their product is. While this might not be a bad idea, more often than not the brochure holders sit empty on the display because the level of service required to keep them stocked with brochures is not feasible.
Fourth, some displays are too difficult to reload. We witnessed this with an endcap display for a major consumer beverage company. The company that designed the endcap put the top shelf too high so the sales guys reloading the display had to step on the bottom shelf when reloading which led to a lot of damage.
6. Not Durable
Poorly engineered or poorly manufactured displays often do not stand the test of time. Given the abuse that most displays need to take in a typical retail environment, it is better to overengineer a display so it will last. A display with failing casters, broken welds, scratched graphics or chipping MDF will ultimately reflect poorly on a brand and will likely need to be replaced sooner than expected.
7. Late to Market
When a POP display misses an in-store target date, it can not only jeopardize a company&#;s relationship with the retailer, but it can cut a selling season short. More importantly, it can wreak havoc on a display program&#;s economics. When a display arrives in store later than expected, it results in lost sales, most of which will never be recaptured. Calculating the opportunity cost of lost sales from a 1- or 2-month delay in getting a POP display in-store can often lead to depression since in many cases the profit on sales from those missed months can sometimes be enough to pay for the display.
8. Difficult to Assemble
The majority of the displays we manufacture for customers are shipped knock-down and assembled by the retailer. In most cases, retailers are willing to assemble displays as long as there are clear directions and the assembly time does not exceed 15-20 minutes. However, if a display is too complicated or difficult to assemble, the retailer may not assemble it correctly, may only partially assemble the display, or may just give up and not put it out on the floor.
9. Unsafe
Safety is a major concern for retailers. With unsupervised traffic in their stores, retailers are understandably cautious when it comes to display safety. There was a recent story in the news about a 2-year old who was killed by a mirror that fell over at a Payless store. It is worth taking precautions to ensure your POP display will not fall over or present a safety risk to shoppers since safety concerns are one of the fastest ways to kill a POP display program.
10. Subject to Hijacking
Unless your display is permanently branded, it runs the risk of being hijacked by the retailer or another brand and used for something else. It is not enough to have interchangeable, branded header signs. The header signs may act as a hijacking deterrent for a period of time, but we have seen too many situations where a company makes the investment in a display and after 6 months the display gets repurposed for another product. Hijacking of a display shortens the economic life of a display and can reduce the return on investment of the display or result in a loss. Whenever possible, we recommend that our customers add screen printed branding, laser engraving, or some form of permanent branding to discourage display hijacking.
Jim Hollen is the owner and President of RICH LTD. (www.richltd.com), a 35+ year-old California-based point-of-purchase display, retail store fixture, and merchandising solutions firm which has been named among the Top 50 U.S. POP display companies for 9 consecutive years. A former management consultant with McKinsey & Co. and graduate of Stanford Business School, Jim Hollen has served more than brands and retailers over more than 20 years and has authored nearly 500 blogs and e-Books on a wide range of topics related to POP displays, store fixtures, and retail merchandising.
Jim has been to China more than 50 times and has worked directly with more than 30 factories in Asia across a broad range of material categories, including metal, wood, acrylic, injection molded and vacuum formed plastic, corrugated, glass, LED lighting, digital media player, and more. Jim Hollen also oversees RICH LTD.&#;s domestic manufacturing operation and has experience manufacturing, sourcing, and importing from numerous Asian countries as well as Vietnam and Mexico.
His experience working with brands and retailers spans more than 25 industries such as food and beverage, apparel, consumer electronics, cosmetics/beauty, sporting goods, automotive, pet, gifts and souvenirs, toys, wine and spirits, home improvement, jewelry, eyewear, footwear, consumer products, mass market retail, specialty retail, convenience stores, and numerous other product/retailer categories.
Alibaba is one of the largest wholesale websites you can find online.
Countless brands around the world fill up their brick and mortar or online stores with products sourced from Alibaba.
But the biggest wholesale marketplace isn&#;t perfect.
Some products arrive looking nothing like their picture. And not all suppliers are reputable. So, how do you navigate an endless number of pages of products and suppliers?
In this article, we&#;ll break down the process of buying from Alibaba.
Alibaba is a wholesale marketplace where you can buy products in bulk, affordably. It&#;s arguably the biggest eCommerce website in the world!
With Alibaba you can buy a single item if you negotiate with a supplier and they agree to sell you one item. However, the real benefit of Alibaba is the ability to work directly with a manufacturer. You&#;re able to get high volume discounts and create your own custom products from scratch using your own designs.
Now, some people are confused when it comes to Alibaba and AliExpress so we thought we would break down the difference between the two below.
The difference between Alibaba and Aliexpress depends on what you&#;re looking for. With Alibaba you&#;re dealing with manufacturers selling products in large quantities but with Aliexpress you have branded products that you can purchase in single quantities for a slightly higher price.
Aliexpress is the retail to Alibaba&#;s wholesale. Business owners like to use Aliexpress to test products before placing larger orders on Alibaba.
We wrote a huge guide on buying products from Aliexpress. You can check that out here.
Like we mentioned above, you have 3 options when buying products on Alibaba. The option you choose will depend how far along in the process you are. The best price will always come from Alibaba. However, if you want smaller quantities then either Alibaba wholesale or Aliexpress are better options. We&#;ll show you the difference with an example.
We looked at all 3 platforms and found this toothbrush set and packaging. Our goal here is to point out the differences between the three.
First up: Aliexpress
Next: Alibaba Wholesale
Next: Alibaba
So what&#;s the final verdict?
Make a decision based on the goals you have. If you&#;re just starting out and want to test products with a small order then Aliexpress is for you. But if you want to start placing larger orders then Alibaba wholesale is the better option.
Once you have established yourself and you want to maximize your profit move over to Alibaba and place the biggest orders you can. Each platform is designed to meet you where you are in your business journey.
Something that bothers me is when our readers lose money or have bad experiences using Alibaba or Aliexpress. I want to try and put an end to that. That&#;s why we partnered with JungleScout to put together a supplier/manufacturer database to help you find the right factory on Alibaba for your products. If you want to check it out, it&#;s right here.
Check Out The Supplier Database
Alibaba and Amazon are the two biggest ecommerce websites in the world. These are the main differences between Alibaba and Amazon from an entrepreneur&#;s perspective.
Alibaba is a wholesale directory where businesses find products and Amazon is the online storefront for businesses to sell their products.
Now:
Alibaba is a marketplace for a business or individual to buy products at wholesale prices directly from manufacturers. It&#;s generally not an online store for the average person.
First, an entrepreneur needs to determine their niche. By choosing a niche, an entrepreneur can find a product category to browse.
Alibaba has a range of product categories from Apparel, Textiles & Accessories to Machinery, Industrial Parts & Tools.
Once you find a product you want to buy, you&#;ll need to reach out to several suppliers. In your conversations with suppliers, you&#;ll want to do 3 things:
1. Evaluate their responsiveness.
2. Negotiate prices.
3. Building a strong relationship with them.
You&#;ll agree on a price, then you can place your order. The inventory will arrive shortly afterwards and you&#;ll be able to start selling online.
In the next few sections, we&#;ll be doing a deeper dive into the entire process.
Yes, anyone can order from Alibaba. Alibaba is the largest supplier directory where a single person can order directly from a manufacturer. But remember that Alibaba doesn&#;t make anything, they feature manufacturers who will work with both individuals and companies.
They&#;re essentially an online directory for manufacturers that you can reach out to and buy products from. You can negotiate price, minimum order quantity, shipping options and even sample prices.
Something that bothers me is when our readers lose money or have bad experiences using Alibaba or Aliexpress. I want to try and put an end to that. That&#;s why we partnered with JungleScout to put together a supplier/manufacturer database to help you find the right factory for your products. If you want to check it out, it&#;s right here.
Check Out The Supplier Database
Follow these steps to open an Alibaba account without a company:
1: Go to Alibaba and click on &#;Join Free&#;
2: Enter your address and verify that you own it. Try to not use your main/personal if you don&#;t want your inbox clogged up with supplier emails.
3: Fill out your basic information. Password, location, first name, last name, and number. Alibaba asks you for &#;Company name&#;..Do not panic. The name can be anything you want, they will not ever ask again.
4: Confirm your personal information and complete the opening of your new Alibaba account. Now you can start buying products on Alibaba.
That&#;s it! You can now buy products and negotiate with suppliers on Alibaba.
Before you go and make your bulk order on Alibaba, you need to make sure your niche and product are validated.
If you decided to create a yoga store, you might try dropshipping some products that you were interested in selling first.
Alibaba is best for experienced entrepreneurs who&#;ve already validated their products.
If you&#;re experimenting with Alibaba on your first try, you could be putting your business at risk, unnecessarily.
If you&#;re looking to have the lowest risk buying on Alibaba, you&#;ll want to check off all the boxes under Supplier Types.
While checking off these three boxes won&#;t protect you completely, you&#;ll be in a better position than if you were to randomly choose suppliers with no assurance.
You&#;ll also want to go over their ratings and reviews to determine their quality, performance and reliability.
Nike, Disney, and Nintendo require licenses to sell their products.
Unfortunately, while Alibaba often sells knock-offs of their products, selling licensed products can result in legal action.
There&#;s no exception to this rule. So don&#;t sell branded products.
Also, look out for products with exceptional designs. It can be hard to know all of the latest video game or movie characters. However, if a product design seems to be top notch, it may just be a licensed product.
Before you even order a supplier&#;s products, some Googling will help you determine whether or not you should reach out to them.
You can use websites like Supplier Blacklist which has user-generated supplier complaints dating back to on international suppliers.
You can also type in your supplier&#;s name and words like &#;scam&#; or &#;fraud&#; to see the results on the page. But keep in mind that business, even yours, will one day get negative reviews.
So while you should read reviews carefully, it&#;s important to know the difference between a one-time disgruntled customer and a bad supplier.
Look for Common Red Flags in reviews, forums and in search results:
Now, let&#;s do the deep dive into the entire process of buying from Alibaba.
With so many product categories on Alibaba, it can be overwhelming to figure out what to sell. Ideally, you would&#;ve already validated your niche prior to buying from Alibaba.
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You want to choose an evergreen niche because they&#;re reliable and benefit from having trends within them.
For example, in our last article, I mentioned that I was in the yoga niche. Yoga has a broad audience and has been reliably popular for years. I sold mandala blankets which some people used to meditate or practice their postures on.
Because I had an evergreen niche, I wasn&#;t tied down to a product and could diversify my product collections as needed. However, since the niche also has trending products I was able to capitalize&#; big time.
This Chrome extension tells you the monthly search volume, CPC, and Competition of a keyword. It helps you see how popular a niche is based on search activity. If you find a niche with over 1,000,000 monthly searches and low competition, you can scroll to see who are the biggest Google advertisers. And you can see top ranked websites for the keyword.
When browsing Amazon, I like to try a variety of product categories to see the best-selling products. Sometimes, you&#;ll find random products that seem like they&#;d be a good fit for your niche. Some products from Alibaba are already selling on the platform, so you can see how well they fare on Amazon.
If they have a lot of positive reviews, be sure to look at the dates. Are people still buying the product or were they buying it months ago? This can help you indicate how viable the product is.
If you want more insight into product research using Amazon, check out the Startupbros article outlining the 3 Amazon product research tactics working in .
Using search terms like &#;trending products &#; you&#;ll find a range of niche eCommerce product lists. The trending products on these lists usually belong to evergreen niches. Use these lists to help you find what to sell in your online stores.
While trend hunter often features products from specific brands, you&#;ll find a range of product ideas that&#;ll help you see upcoming trends. The website doesn&#;t give you context as to why the product is a trend so do your research.
On their homepage, there&#;s a cauliflower pizza crust made by Green Giant. The context is that the most popular diets right now tend to be low carb. Food brands are now using cauliflower, beans and lentils in traditional carb foods like pizza and pasta as healthy and low carb substitutes.
After narrowing down a list of ideas, you can cross-reference the niches on Google Trends. Sometimes trends are too new and don&#;t have enough search data to show up. Other times it may just not be popular enough.
On average, I like to stick to &#;-present&#; to see the full lifetime span of the niche. If you stick to evergreen niches like fashion, you&#;ll see that that while there are seasonal upticks and dips, it generally remains pretty stable.
However, keep in mind that fashion is too broad a niche. Fashion retailers often niche down a bit. For example, women&#;s fashion, men&#;s fashion, maternity clothing, plus size clothing, children&#;s clothing, etc.
Sometimes, when I can&#;t decide between the final two or three niches, I use Twitter polls to get feedback. I use hashtags like #ecommerce or #dropshipping so that people within the eCommerce community can vote on a niche. However, the real magic isn&#;t actually the response you get from the people.
Have you ever had someone else make a decision for you and realized you wanted the other option instead? If people vote for a niche you don&#;t actually want, your decision will become clearer. I&#;ve actually tried this in the past and it helped me make progress on a new store faster.
These are just some of the websites you can use to help narrow down your niche. Using a combination of all the websites tends to work best. When I plan to start a new store, I usually go through the entire list and narrow down a niche based on data from all these methods.
While most entrepreneurs choose products first and suppliers second, some entrepreneurs find that choosing a supplier is the best way to go to have a consistent style on your store.
Many suppliers offer a range of products that you can sell. It can also be good to have one or two core suppliers so that you can strengthen your business relationship, ensure you have a reliable supplier and a cohesive product collection.
For example, if you&#;re looking for fashion, you wouldn&#;t type in fashion as it&#;s too broad. However, maybe you&#;re looking to sell cocktail dresses for a women&#;s fashion store. So you type in &#;cocktail dresses&#; to ensure that the suppliers carry that type of product.
You can then further narrow down your suppliers to include only Trade Assurance and Gold Plus Suppliers.
Next, under Sort By you can either leave it as Best Match or change it to Transaction Level or Response Rate. Transaction level is a great option if you&#;re looking for a supplier who&#;s processed a lot of orders.
Response rate is good if you&#;re looking to build a relationship with a supplier. It all depends on what your needs are in your dealings with the supplier.
Now, you&#;ll need to do some work looking up the suppliers that seem to have the types of products you&#;re looking to carry on your online store.
If you want to check it out, it&#;s right here.
Check Out The Supplier Database
You can click on the supplier&#;s page which details information like their company bio, response rate and time, transaction level, factory inspection reports, and their main products. You can also send messages to the supplier at the bottom of the page.
When choosing a supplier to work with these are the things you want to look for:
Keep in mind that no matter how much due diligence you do, there may still be issues that arise in your relationship with your suppliers.
With millions of products to choose from it can be daunting to navigate Alibaba&#;s website to pick products that you want to sell. While you were picking a niche, you might&#;ve seen recurring patterns of the types of products you should sell.
For example, say you run a travel blog that you now want to monetize with travel related products. You might&#;ve noticed that scratch off travel maps have been really popular. So you decide to search for them on Alibaba.
As you scroll through, you see that Alibaba has various travel maps with different styles.
&#;But how do you know which one to sell?
Match products you&#;ve researched to factories on Alibaba. If you want to check it out, it&#;s right here.
Check Out The Supplier Database
Some travel maps require a minimum of 500 maps ordered while others only require one. Do you stick to the ones with the lowest minimum quantity or do you just ask for samples of the products with higher quantities?
You&#;ll notice that some of the travel maps look the exact same but are sold by different suppliers and at different prices. In the past when I&#;ve ordered from AliExpress, I&#;ve made the mistake of buying products with the lowest pricing.
At the time I was selling a blanket. Unfortunately, the product with the lowest price had the thinnest material and resulted in countless complaints. However, when I chose a higher priced version of the same product it had a thicker material which customers loved.
The key lesson here is never base your decisions exclusively on product pricing. Lower pricing often means lower quality.
So, back to these maps.
You can start using the filters on top to narrow down your options. Because let&#;s face it with 849 products to choose from, there&#;s too much variety to sort through.
Under Supplier Types, you might choose Trade Assurance and Gold Plus Supplier to lower your supplier risk.
Look at Past Export countries, you might choose your country to make sure they ship to your region.
Where it says minimum order (Min Order), you can set a quantity your most comfortable with paying for. For example, ordering 500 minimum at $2.40 a piece can set you back $. Maybe you only have a budget of $500 so you add in a minimum order number of 100.
Your product listing results end up with 36 listings. And a quick browse of it shows that some of the products listed don&#;t meet the minimum order set making the product pool even smaller.
There are about 20 products to choose from. You can narrow it down further by choosing the top five styles you think your audience will like. Then, you can move onto the next step and contact suppliers for samples.
You can use the samples to take product photos and validate which product is best at converting the sale so you know which product to end up order the bulk quantity for.
When you land on a product page, there&#;s a large, orange button labelled &#;Contact supplier&#; which allows you to reach out to the supplier before placing your order.
You don&#;t need to reach out to the supplier before you start your order. However, it can be a good idea to ask some questions to get further clarification on the product.
Here&#;s a sample of what you can ask in your first message to your supplier:
Your first message should be an attempt to get a sample to do a quality check on your product. For example, if you were selling fake eyelashes, you&#;d use the sample to try on the eyelashes.
Does the product cause irritation? Does it last a few hours or does it fall off before the end of the night?
Some entrepreneurs hurry the process and avoid getting the sample.
However, not all products are made equal. It&#;s tempting to buy the cheapest product to cut costs. Yet, cheaper cost usually means cheaper quality.
And the sample you get will either show you that you&#;ve chosen a good product or you need to find a different product from another supplier.
If you&#;re happy with the product sample you order, you can send your supplier a second message.
In your second message, the focus should be on negotiating prices, sending details such as logo for custom packaging, including your shipping address, and asking shipping related questions.
When it comes to negotiating prices, wait until the supplier sends you the total cost. For example, if the total order comes out to $522.98, you can negotiate to bring the cost to an even $500 for the total order. Or if you&#;re looking to lower your cost per product, you can offer to order more products in return for a better per product price.
Keep in mind that these conversations should help you better understand what you&#;re buying and who you&#;re buying it from. So treat your suppliers on Alibaba as you would a business partner because they can be some of your biggest allies when it comes to building a successful brand.
Match products you&#;ve researched to factories on Alibaba. If you want to check it out, it&#;s right here.
Check Out The Supplier Database
Once your products have arrived, you need to assess the quality of the products.
Here are some tips when examining inventory:
If you sell apparel, look for any rips or tears to clothing this is especially important for lace apparel. For clothing, you&#;ll also want to double check the measurements to make sure they&#;re the right size.
If you sell any products made of wood, felt or sticky material check to make sure there&#;s no dust or dirt on the products. You might also want to check for any ink stains.
You&#;ll also want to check to see if each product has every component. If you&#;re selling products with multiple pieces, you need to make sure every product has every piece with it.
If you ordered 300 products, you need to do a count check to make sure you received all pieces. This can sometimes be a problem for higher order volumes.
When you only order 5 pieces, it&#;s often noticeable if one&#;s missing. But if your inventory is in the hundreds or thousands, you or someone on your team need to check that you received everything you paid for.
While you likely want to have your products packaged in your own custom packaging. You might still want to pay attention to how your products were packaged.
Here are a couple questions you may want to ask yourself:
After examining the quality of the products, is there anything you need to do next?
For example, if you receive clothing but it&#;s wrinkled, you may want to steam the apparel before shipping it out to your customers.
Are there any products that are too damaged to sell? You may want to reach out to your supplier or Alibaba for a refund.
As an eCommerce platform, you can build your own brand and sell from your own website or pop-up shop.
Plus, there are apps you can install on your store which allow you to sell your products on Amazon, eBay, Etsy and Instagram.
You have control over your own product pricing and don&#;t need to compete with other vendors.
While you have to do your own marketing, you&#;ll be able to build your own list, social media followers and more. Your customer list is owned by you.
Amazon is one of the most popular websites to sell products online, especially from Alibaba. Millions of people buy from Amazon&#;s website everyday making it more likely that customers will find you.
You&#;ll benefit from having Amazon market your products for you.
The downside is that while you won&#;t have to worry about marketing, you won&#;t own the customers who buy your products. So, you&#;re prevented from remarketing to your customers via ads, or other marketing assets.
Facebook groups are a hidden gem for finding people to sell to. First, you can browse the Buy & Sell groups for your city allowing you to sell your products locally.
It also helps you keep your shipping costs low as you won&#;t need to pay for shipping fees if they pick-up your products in person.
You can also try to sell your products in niche Facebook groups with the permission of the Admin, or else you&#;ll get banned.
But you can also create your own Facebook group so that you can occasionally sell products to people who join. Depending on where your members live, you may need to pay shipping fees for this.
Here are a few marketplaces you can also sell your products in:
Buying from Alibaba can be a great way to sell products online, affordably. While there is some risk with selling products from Alibaba, entrepreneurs can take steps such as doing careful research before working with a supplier.
Ultimately, you need to decide if Alibaba is right for you. If you&#;re just starting out on your entrepreneurial journey, you might choose to dropship products from AliExpress instead.
However, if you&#;re looking to design your own products or cut down your product costs, Alibaba may be a better alternative.
We partnered with JungleScout to put together a supplier/manufacturer database to help you find the right factory for your products. If you want to check it out, it&#;s right here.
Check Out The Supplier Database
For we&#;ve completely updated and launched a brand new Amazon business course that teaches first time entrepreneurs how to launch their very own physical product Amazon business fast. Negotiating, import taxes and buying on Alibaba is a big section on the new course. If you want to check that out and see if it&#;s right for you click here&#;
Or -> /ecommerce-workshop&#;>Join us live for the free presentation on launching an Amazon business in 90 Days <-
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