Building a Merch Strategy for Your Small Business
Most small business owners have thought about selling branded merchandise at some point. Maybe it's t-shirts with your logo, mugs for your coffee shop regulars, or stickers that actually look good enough to use. I actually took a stab at this a few years ago, creating inspirational prints using a drop-ship model. It didn’t quite work out the way I had hoped, but it was a creative idea worth trying.
The custom apparel market is around $55 billion in 2024 (source: Global Growth Insights, Business Research Insights), and it's no longer just the big brands that get to play in this space. Small businesses can create merchandise people genuinely want without a massive budget or a fancy production setup.
That said, this isn't a get-rich-quick scheme. Building a successful merch line takes strategy. You need to think about what actually makes sense for your brand, what your customers would use, and how to price things so you're not losing money.
Here's what we'll cover in this short guide:
Why small businesses need a merch strategy
How to choose the right products for your brand
UV DTF Stickers and print methods that sell
How to price your merchandise
Getting your first sales
Why Small Businesses Need a Merch Strategy
Building a merch strategy isn't just about slapping your logo on a t-shirt and calling it a day.
It's about creating products your customers actually want to use. When someone puts your sticker on their laptop or wears your hoodie to the grocery store, they're promoting your business without you having to pay for ads or ask them to do it.
According to Cin7, 91% of consumers say they try to support small businesses when it's convenient. (Source) Merchandise gives people who already like your business an easy way to support you while getting something useful in return.
That's the real value of a good merch strategy.
Choosing the Right Products for Your Brand
Before you start buying products to put your logo on, it's important to understand that not every product will be right for your brand.
It all comes down to matching the merchandise you offer to your audience and brand identity.
To start, ask yourself:
What products would your customers actually use or wear?
What products fit the personality and style of your brand?
What can you produce without spending more money than you'll get back?
The best approach for most small businesses is simplicity. Focus on two or three core products at first rather than trying to provide everything. This way, your inventory is more manageable, your upfront costs are lower, and you can focus on learning what sells.
Popular starter products include: t-shirts, stickers, tote bags, mugs, and hats.
Stickers are a smart choice for new businesses looking to build brand visibility without spending a lot of money upfront. Low cost to produce, easy to ship, and almost everyone loves them. UV DTF stickers, in particular, have seen a recent surge in popularity. They adhere to virtually any surface, offer extremely vibrant color, and hold up well to long-term wear.
A closer look at UV DTF Stickers and Print Methods That Sell
Different print methods work better for different products and order sizes. It's important to understand them all to drive UV DTF sticker sales and overall merch success.
DTF (Direct-to-Film) printing has become super popular for a reason. It works on nearly any fabric color, and the finished products have incredible detail and color retention. DTF is also a flexible option for small businesses because you can typically place small orders without minimums.
Screen printing is another solid method. It's the gold standard for large orders where volume and consistent quality are the priority. However, setup fees make it less than ideal for low quantity orders.
Heat transfer is a great, accessible option for beginners. Equipment costs are fairly low, so you can start production right from home.
The print-on-demand model has also created huge opportunities for small businesses. Basically, print-on-demand means you don't need to have any inventory at all. Products get produced and shipped when the customer orders them.
How to Price Your Merchandise
Pricing merchandise correctly is where many small businesses get tripped up. Price items too low and you're working for free. Price items too high, and nothing sells.
Start by calculating your total cost per item. That means the blank product, printing, packaging, and shipping materials, if you're covering that cost.
Then multiply that number by 2.5 to 3 times for your retail price.
For example, if a t-shirt costs you $12 to produce and ship, you should sell it for $30-$36. That markup covers unexpected costs, platform fees, and gives you room to run a sale without losing money.
The biggest mistake is pricing too low because you're worried people won't buy. If someone is buying your merch, they're already choosing to support your business. They're not comparison shopping for the cheapest t-shirt on the internet. They want something connected to a brand they care about.
Getting Your First Sticker Sales
You can have great products, but if nobody buys them, it doesn't matter.
Here's how to start moving inventory:
Launch to your existing audience first. Your current customers and social media followers already know your business. They're the most likely to buy. Give them early access or a small discount for being first. Don't worry about overselling to people who already like what you do. (Email marketing is a great medium here, too!)
Use your products as marketing tools. Send free samples to loyal customers who might post about them. Include stickers with every order you ship. Put them on your own laptop or water bottle to get people asking questions.
Create bundles. Selling a pack of five stickers is more appealing than listing them separately. Bundles increase your average order value while giving customers a better deal.
Take advantage of seasonal opportunities. Holiday designs, back-to-school themes, and seasonal releases give people a reason to buy year-round.
Building merch sales takes time, so don't expect immediate results. Focus on making quality products and treating your customers well, and you can gradually expand what you offer.
Start Small and Build From There
You don't need a huge budget or a warehouse full of inventory to sell merchandise. Start with one or two products that make sense for your business. Test what works with your existing customers. Adjust your pricing and products based on what actually sells.
The goal isn't to become a merch empire overnight. It's to create another way for people who already support your business to connect with your brand while bringing in additional revenue.
Pick one product to start with this month. Get samples made. Show them to a few trusted customers and see what they think. That's how you build a merch strategy that actually works.
