Five Tips To Increase Profit Margins with Accessories

A major factor in running a fashion boutique is having a profit margin strategy. It should come as no surprise that to build a successful and profitable store, margins are key. A rule of thumb for profit margin is a 2x markup over the wholesale cost of your apparel, but that’s not always easy to maintain consistently.

Accessories are expected to be one of the healthiest segments in fashion sales by 2025 and make up 12.3% of consumer purchases. Jewelry is expected to make up a whopping 20.9%! Consumers are attracted to accessories for a variety of reasons. For one, a new statement necklace or seasonal scarf is less likely to break your bank than a pair of designer jeans. Smart retailers use the versatility of accessories to increase their total store sales, so this blog discusses five tips on creating a recipe for selling success in your store.

1.      Use Social Media and Shoppable Content

Social media plays an integral role in selling accessories. That’s hardly surprising given the role of our smartphones in our daily lives. Some 62% of consumers watch videos to learn about a product before they buy. Platforms like TikTok and Instagram also drive sales and allow shoppers to visualize the product on a real person.

But social media is no longer a place for shoppers to just learn about new fashion trends; it’s also a place for shoppers to buy as they learn, through in-app, integrated shopping experiences. This shortens the line between influencer product promotion and an actual purchase, right inside the apps where customers are already engaged, such as Instagram, TikTok Shop, Meta, buyable pins on Pinterest and more. 

2.      Offering Something for Everyone

No one knows your customers better than you, so aim to please when it comes to offering customers what they want and need. Stocking classic accessories like cubic zirconia earring studs or black satchels can help keep accessory sales steady. However, trendy pieces each season are important for most merchants to reach their sales goals

Some analysts have predicted a surge in consumer spending, particularly in luxury and high value items. More expensive jewelry and handbags could be the money maker for your store in 2025 and beyond. So, variety is vital here, as you want to offer items that will keep your customers engaged. Aim to provide enough assortment that customers look forward to returning again and again, always curious as to what they will discover next.

3.      Merchandise Accessories with Sales in Mind

Many merchants overlook the value of a sales-driven merchandising strategy. One way you can do this is to include accessories in all store displays. Layer clothing with accessories both on hangers and on mannequins to create outfit displays that inspire your customers – encouraging them to buy accessories along with their planned apparel purchases. Another way to incorporate more accessories into your store is to display them within easy-to-reach, easy-to-touch locations. If you have an online store only, you can still apply these tips by styling your apparel products with the accessories you carry and offer. 

4.      Boosting Impulse Purchases

Accessories are often impulse buys. When a customer is shopping for clothing, they may also grab a matching pair of earrings, a stylish bag, or a trendy hat.

Adding impulse items to your store creates an environment where customers feel encouraged to purchase more than just the items they initially intended. These small add-ons can substantially increase your total sales volume.

Moreover, accessories are generally easy to display, making them perfect for in-store as well as placements and styling on your online store that prompt quick decisions from customers.

5.      Price Fashion Accessories to Sell

Start by buying inventory that lowers your price point, meaning purchase fashion accessories at a price that yields high margins. According to experts, there is no set rule for pricing boutique merchandise, but most small retailers use a 50% markup strategy. This is the standard, which means that the wholesale cost of an item is doubled. For example, if you’ve purchased a wholesale bag for $25, you can sell it at retail cost of $50. 

Using a variety of vendors can also help you gain higher markups – including vendors with wholesale price points of less than $2, $3 and even $5. The best part, however, is that you can retail these items for 400% percent or more! With margins like this, your sales are bound to soar. Take into consideration overhead expenses such as wages and rent, the quality of the merchandise, and what your competitors are charging.

Convinced, but not sure where to start? If you want to go beyond the accessories that Bloom Dropship offers, google “accessory wholesalers” and a countless number of resources will pop up. But a personal favorite or ours is Faire, who offers a wide variety of quality, women’s accessories and jewelry. You can also opt for in-person fashion shows like Dallas Apparel, Magic and Off-Price.

In the fast-paced world of retail, finding the right wholesale accessories can be the key to boosting sales and staying ahead of the competition. Whether you run a boutique, an online store, or a specialty shop, purchasing accessories in bulk offers a cost-effective way to maximize profits while providing customers with in-demand products. So don't delay! Jump in, have fun, and be sure to do your trend research!