Selling Online vs. Markets vs. Retail: The Best Sales Strategy for Small Businesses
So you’ve started your own small business and you have your products. Now you’re just wondering what the next step should be. Should you sell your goods online, at markets and other events, at retail stores, or all three? There’s no one good answer to this question but we’re going to lay out some pros and cons to help you decide where you should be selling.
Selling Online
I started selling online first, before markets, and I’m still selling online but I don’t get many sales. It’s a lot of work to market, promote, and manage with everything else going on.
Pros
Your products could be seen by people around the world
Your store is open 24 hours a day so you can make sales while you sleep
You can work from home (in your pajamas if you really want)
Cons
It’s harder to make sales because the buyer can’t physically see/hold the product
It costs to have a website monthly/yearly
It takes a long time to build your website and get your products listed
It is hard to show up on the first page of Google without proper SEO on your website and since people don’t often scroll past the first or second Google results page, it’s likely your page won’t be shown to visitors
Selling at Markets
Making friends at markets is the best part.
Selling at markets is by far my biggest source of income as a handmade local artist with small-batch products, in which I’ve made many personal connections with.
Pros
People will get to meet the person who makes the products
You can see how people react and give feedback to your products
Potential for custom orders
You can make new friends and potential clients
It’s easier to sell your products because people can touch, see, and ask questions about them
You can network with other local vendors and businesses
Markets are great for brand recognition and gaining new followers on social media because even if people can’t afford to buy from you now, they can follow you which will keep you in their mind, and the next time they see you, they could make a purchase
Cons
Market days can be long and hot
Markets can be slow and unproductive
Markets can be weather dependent, but if they’re not, the rain/bad weather definitely slows traffic by a lot
Slow foot traffic will make it incredibly difficult to make sales
Market prep takes a long time- You have to prepare inventory, set up your tent/tables/goods, work the market, then tear down after
“Competition” can make sales tough some days
Not all markets will be the right fit for your business so do your research before applying
There are typically fees associated with vendor booths but as long as you only vend at markets with low fees, you should be able to make your vendor booth fee back by the end of the market
Sage & Oak retail space at Sip & Dipity Paint Bar
Selling in Stores
I just recently started selling in multiple retail locations that are not my own. It’s nice to have passive income, but it’s harder to stock because you have to drive place to place to check inventory.
Pros
You don’t have to be present so it’s passive income
Your goods get shown to new people
You can stock and forget about it for a few days (depending on your demand) while the store does the selling
It builds credibility between you and local shops
Other retailers can find your stuff and reach out to wholesale/sell your goods
Your products are visible to people daily, even when you’re not there
Cons
The store usually takes a percentage (usually between 30%-50%) for selling in their location
You won’t get to meet your customers
It’s a lot more travel back and forth to check inventory and restock
Selling Online, at Markets, and at Stores
I currently sell online, at markets, and in several retail locations. Yes, the income streams are nice, but it is a lot of work. Before you jump into everything, make sure you really plan and think through how you’re going to make it work.
Pros
More potential for income with three revenue streams
Great brand visibility
You can reach so many different audiences
You can quickly learn what performs well, what doesn't, and current trends
It builds credibility between you, local community members, and retailers
Cons
It can be physically and mentally draining to stock inventory for online sales, market sales, and retail sales
It costs a lot to create inventory to stock all three places
It takes a long time to create the inventory to keep these places stocked
So, Which Should You Choose?
Do what aligns with your business goals, without stretching yourself too thin. Selling in multiple channels—markets, online, and in stores—can be powerful for growth. But remember: you can’t do everything at once without risking burnout. Start small, focus on what works, and build from there.
If you’re just starting, begin with markets to build your local customer base, get live feedback, and refine your products. From there, consider opening an online store to capture out-of-town customers and sell year-round. Once your production capacity is ready, explore selling wholesale or on consignment in local shops for additional steady income. Let social media and online sales help expand your reach, and retail partnerships solidify your presence. With a balanced approach, you’ll grow your small business in a way that’s sustainable and successful for you.
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