If you’re dreaming of launching your own merchandise business, you’ve come to the right place! Starting a business on a budget is totally doable with the right approach. Whether you’re looking to launch your first small business or expand an existing one to include merchandise, in this step-by-step guide, we’ll show you how to start a merchandise business from the ground up, focusing on smart, budget-friendly strategies. Get ready to turn your creative ideas into a thriving business!
- When starting a merchandise business, it’s important to understand your market and audience before spending a dime. When you know exactly who you’re selling to and what niche you’re filling, you’ll avoid those early-stage mistakes that can eat into your budget.
- By using print-on-demand services and starting with minimal inventory, you can launch your merch business with very little upfront cost while figuring out what your customers love most.
- Access to free design platforms, budget-friendly print-on-demand services and low-cost e-commerce options, means you can build a professional-looking business without breaking the bank.
- Small businesses with limited marketing budgets can use social media, create engaging content and build strategic partnerships to help grow their brand at little cost.
What is a merchandise business?
A merchandise business buys products from suppliers and sells them to customers, basically acting as a middleman. A merchandise business is all about creating and selling products that represent a brand identity or message, turning creative ideas into products people use and wear. This could be anything from trendy T-shirts and cozy hoodies to practical items like tote bags and water bottles.
Start small with just a few products (like T-shirts, hats or mugs) with minimal risk and grow your range as your business takes off and you see what works.
Step 1: Identify your target audience
Much like setting up a clothing brand, if you try to sell your merchandise to everyone, you’ll sell to no one. That’s why finding your target audience is so important. Figure out exactly who your target customer is before spending any money on products or marketing.
Who are you selling to?
When defining your target audience, it’s a good idea to create a user persona—like you’re creating a character. Who are they? What do they care about? What problems can your merchandise solve for them? For example, if eco-conscious millennials are your target market, they probably care more about sustainable materials and ethical production than low prices.
Understanding their needs
Your target customers are real people with specific needs and desires. Spend time understanding:
- What frustrates them about existing merchandise options?
- What do they look for in merchandise products?
- What encourages them to buy something?
- What channels do they use to make purchases?
Think of this research as an investment that’ll save you money and time later on. When you understand your customers, you’ll avoid costly mistakes like ordering products they don’t want or marketing in digital or real-life spaces they never visit.
Step 2: Choose your business merchandise niche
Get specific about what kind of merchandising business you want to build. You don’t need to stock everything under the sun! In fact, starting with a focused niche is often more profitable and budget-friendly.
Start by asking yourself:
- What are you passionate about? (You’ll be spending a lot of time with these products!)
- What problems can your business solve?
- What promotional products and trends are getting your target customer excited right now?
Before you spend money on inventory, dig into social media conversations around your potential niche, popular hashtags and trending topics. Find out what your competitors are doing (and what they’re missing!) For example, if you’re thinking about eco-friendly merchandise, look at what people say about sustainability in the fashion industry. Are they asking for products that don’t exist yet? That could be your opportunity!
Use tools like Google Trends to research potential niches and find out what people are interested in right now!
Step 3: Select your merchandise products
Here’s one of the biggest secrets to starting a merchandise business on a budget: be smart about your initial product selection and expand your range later. Start with proven merchandise winners like clothing and bags.
T-shirts
Everyone wears T-shirts, they’re easy to ship and design possibilities are endless. Make sure to design T-shirts that appeal to your ideal customer’s tastes, know the different types of printing, choose the best T-shirt brand for your needs and pick a reliable print partner.
Need some inspiration? Check out these stunning T-shirt design ideas and trends!
Our T-shirt design guide is packed with inspiration and practical tips to get you started.
Hoodies
Custom hoodies and sweatshirts are perfect for creating premium casual wear merch. Discover the best blank hoodies for printing to decide which is best for your merchandise business.
Hats
Designing and printing custom hats involves low production costs and great margins. Choose a hat style that suits your audience’s needs and print your logo or design on it.
Tote bags
Bags, specifically tote bags, are an example of merchandise that is both eco-friendly and practical, making them popular with consumers.
Make sure you choose products that will sell! Test your ideas by running polls on social media platforms where your target audience spends time and using free design tools to mock up product designs before printing. Finally, compare printing costs to figure out if your business merchandise would be financially viable.
Step 4: Establish a budget
Let’s talk money—specifically, how to make the most of what you’ve got! First things first: let’s look at what you need to spend money on to start a merchandising business:
- Essential design tools and software (research free options if you have a small budget)
- Sample products (to test materials and print quality)
- Business setup costs (to cover business registration fees, permits, licenses and insurance)
- Website hosting and design (check out free or budget-friendly website builders like Vista x Wix)
- A marketing budget to get started (covering budget-friendly marketing tactics like building your social media presence)
When you’re just starting out, there are plenty of smart ways to make your budget go further. Rather than tying up your money in inventory, try using print-on-demand services that only print items when customers order them. Keep your website design simple at first—you can always develop it as your business grows.
Reinvest money back into your business to fuel its growth! This patient approach might mean a smaller income at first, but it sets you up for much greater success in the long run.
Step 5: Find a product supplier
This is where budding merchandise entrepreneurs can get lost in the sea of options—but don’t worry, finding the right supplier or affordable printing partner doesn’t have to be complicated.
What to look for in a supplier
Find a small business merchandise supplier that is…
- Reliable: You need someone who’ll deliver on time, every time. After all, your reputation depends on it! Look for suppliers with solid reviews and a track record of consistency.
- Cost-effective: The cheapest option isn’t always the most budget-friendly in the long run. Look for suppliers offering good quality at reasonable prices and don’t forget to factor in shipping costs.
- Flexible: Starting small? You need a supplier that’s happy to work with low minimum order quantities. This way, you can test products without ordering hundreds of items upfront.
Printing and shipping
Let’s tackle the practical side of printing and shipping your products:
- Local vs. overseas suppliers: While overseas suppliers might offer lower prices, don’t forget to consider shipping times and potential communication challenges. Sometimes, paying a bit more for a local supplier can save you headaches (and money!) in the long run.
- Print-on-demand: Print-on-demand services allow you to sell products without an inventory. Only pay for items once a customer orders them.
Check out our guide on how to print and ship design products for more detailed tips and tricks.
Step 6: Create designs that stand out
Ready to let your creativity shine? Here’s how to create eye-catching merchandise designs on a budget.
Design merchandise on a budget
Creating small business merchandise doesn’t require an art degree. There are plenty of templates and easy-to-use design tools to help you create professional-looking designs at affordable prices. However, if you want to hire a professional to design your merch, try our design services to bring your brand to life.
Merchandise design tips
Finding the sweet spot between simplicity and style is the key to successful merchandise design. While it’s tempting to create complex designs, sometimes the most effective ones are beautifully simple. Keep an eye on current trends, but don’t be afraid to add your unique twist—that’s what will make your merchandise memorable. Remember to always keep your target audience in mind: what would they actually want to wear?
Our step-by-step guide on how to make merch will help you create merchandise customers will love.
Step 7: Build a brand identity
Time to give your merchandise business a personality! Your brand identity is what makes you stand out in a crowded market.
Steps to develop your brand
- Choose your brand colors: Your brand colors matter more than you might think! Each color sends a message according to the principles of color psychology. For example, blue represents trust and professionalism, while green suggests sustainability.
- Create brand guidelines: Strong brand guidelines help your branding feel cohesive and professional.
- Develop your brand voice: How will your brand “talk” to customers? Is it casual, professional or funny? Whatever you choose, keep it consistent across all platforms.
- Brand consistency: Ensure your branding is consistent across all platforms, from your merchandise branding to your website and packaging.
Step 8: Set up an online store
Now for the exciting part—creating your website! Your website is important as it is often the first impression potential customers will have of your merchandise business. Effective website design can be the difference between whether they make a purchase or not.
Check out website color schemes and web design trends to create a visually appealing online store.
Make your website work harder for you with:
- Responsive website design: Many of your customers will shop on their phones, so make sure your website is mobile-friendly.
- Easy navigation: Make sure your business website is simple and intuitive.
- Engaging product photos: Show your merchandise in its best light with professional images.
- Clear descriptions: Tell customers exactly what they’re getting with descriptions that include material information and care instructions.
Step 9: Market your merchandise business
Small business marketing doesn’t have to cost a fortune! Here are some smart, budget-friendly ways to get your merchandise products in front of the right people. A marketing mix of digital and traditional tactics is often the most effective way to market a small business.
Our small business marketing report presented in partnership with Wix can help you understand how to effectively reach audiences on a budget.
Social media marketing
As you develop new designs, take your followers on a journey by showing them behind the scenes. And when customers start wearing your merchandise, share their photos to build your community and inspire more purchases. Communicate your brand’s story, values and personality in your social media strategy to create powerful connections with your audience. Don’t forget to use hashtags to help new customers discover you.
Collaborations and partnerships
Collaborate with micro-influencers and complementary brands that share your values and speak to your target audience—these partnerships can open doors to new markets. If you want to expand your reach further, setting up an affiliate program can turn your biggest fans into passionate brand ambassadors.
Offline marketing
Advertise your products and discounts offline with posters and banners. Then get out there and show off your merchandise at local events and pop-ups—there’s nothing like letting customers touch your products. Handing out well-designed business cards and flyers can help leave a lasting impression. Build in-person relationships with like-minded business owners—you never know where these connections might lead. And when it’s time to celebrate a launch or milestone, organize an event that brings your community together and gets people excited about your brand.
Ready to launch your merchandise business?
Starting a merchandise business doesn’t need a massive investment—just smart budgeting and creative thinking. You can build a successful merchandise business from the ground up by focusing on your target audience and choosing the right products and marketing strategies to launch. Remember to start small, test your ideas and reinvest in your growth. With print-on-demand services, budget-friendly design tools and social media marketing at your fingertips, there’s never been a better time to launch your business!
FAQs
Is selling merchandise profitable?
It can be! The key is keeping your startup costs low with a limited product range and gradually scaling up as you discover what sells best. Research material and printing costs to figure out what your profit margins will be.
Do people buy merchandise?
Yes, people buy merchandise for all sorts of reasons, like expressing their personality, supporting causes or businesses they care about, connecting with specific communities or simply enjoying unique, well-designed products. Understanding these motivations helps to create merchandise that connects with your target audience.
How much does it cost to start a merch business?
The beauty of starting a small merchandise business is that you can begin with as little as a few hundred dollars. If using a print-on-demand service and free design tools, your main initial costs will be website hosting, sample products and launch marketing efforts. As your business grows, you can reinvest profits to expand your product line.
