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How to sell merch online: the decisions that matter

Where to sell merch, how to price it so it survives landed cost, and why the storefront is the least important decision you will make. A practical guide.

How to sell merch online
Daniel avatarDanielBusiness5 min read

Almost every guide to selling merch online is a guide to picking a storefront platform. That is the wrong first question, and answering it first is how people end up with a beautiful store selling a product with no margin.

Three decisions actually determine whether this works. The platform is not one of them.

1. Price from landed cost, backwards

The number a factory quotes you is not what your merch costs. Landed cost is the quote plus freight, duties, customs clearance, warehousing, pick and pack, outbound shipping and the returns you are going to get.

So work in the other direction. Start from the price your audience will actually pay for this category, subtract the landed cost, and see what is left. If the answer is uncomfortable, the fix is upstream, in a different spec, a different quantity or a different manufacturer. Not in a cleverer checkout page.

Getting comparable quotes from several factories is the highest-leverage thing you can do to that equation, which is why the playbook puts it before anything else.

2. Choose the channel your buyers are already in

There are four real options, and they are not equivalent.

ChannelGood atBad at
Your own storefrontMargin, data, brand controlTraffic, you supply all of it
MarketplacesDiscovery, existing trustMargin, and you rent the customer
In-platform (creator shelves, social shops)Zero-friction impulse buysEverything after the sale
In person: events, pop-ups, retailConversion rate, feedbackScale, and it does not run itself

Most brands should own the storefront and use one of the others as the funnel into it, rather than picking one and hoping. What you should not do is stand up four channels at once: each one adds inventory allocation, support and a way for stock counts to disagree.

Traffic is the constraint, not conversion. A storefront is a way to capture demand, not a way to create it.

3. Decide who handles the order after it is placed

The checkout is the middle of the transaction, not the end. After it come warehousing, picking, packing, carriers, customs paperwork if the parcel crosses a border, sales tax collected and filed in the right jurisdictions, and returns.

This is the part that is invisible when you are planning and total when you are live. It is also the part where a bad decision compounds: every extra vendor in the chain is another party with no view of the delivery date and no obligation to it.

The whole stretch is merch fulfillment. Decide how it runs before the goods land, because after they land you are choosing under pressure.

The storefront, since you were going to ask

Pick the one you will actually maintain. All the mainstream options can take money for a hoodie. What differs is what happens around the sale, and the things worth checking are unglamorous:

  • Does inventory sync with wherever the stock physically is
  • Can it collect the right sales tax in the places you sell
  • Can it show accurate delivery estimates, not optimistic ones
  • Can a customer start a return without emailing you

None of that is visible in a theme preview, and all of it is what determines whether selling merch online is a business or a second job.

The short version

Price backwards from landed cost. Pick one channel and one funnel into it rather than four of everything. Decide who owns the order after checkout before you need to know. Then choose a storefront, last, and quickly.

Frequently asked

Enough that the piece survives freight, duties, storage, shipping and returns and still leaves something. Rather than aiming at a benchmark number, build the landed cost honestly and see what the market price leaves you. A healthy percentage on a wrong cost base is not healthy.

Your own merch, in production in 5 minutes.

Adaptive storefronts on top, the whole supply chain underneath. Ship without managing the stack.

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Daniel avatar

Daniel

Business

Founder of Nomu, leading partnerships, go-to-market and revenue with the consumer brands building on the platform. Writes about post-DTC strategy, retail distribution, brand growth and the commercial moves that compound - beyond paid acquisition.