Mothering › Forums › Natural Family Living › WAHM Well › Online Cloth Diaper/Natural Parenting Store... Has the bubble burst?
New Posts  All Forums:Forum Nav:

Online Cloth Diaper/Natural Parenting Store... Has the bubble burst? - Page 2

post #21 of 23
Quote:
Originally Posted by PoppyMama View Post

I used to work in a brick and morter store that specialized in cloth diapering and baby wearing. It went under about a year ago and the main problem is that cloth diapers are a high labor (you tend to spend a lot of time per sale even if you have classes) and low profit (you don't have the needed profit margin in many of the diapers including the most popular). Its also hard to keep stock of exactly what people want due to both supply (many of the companies making diapers have shortages) and demand (buyers can be picky about colors and such and having everything is hard and expensive).


First, let me tell you that though I am about to seem harsh, I am really saying it out of concern and a very strong desire to save you money and pain.

 

The market is way oversaturated and what PoppyMama says is very true.  It would be a terrible idea to invest any money in this.  We watch companies appear and disappear within months.  To fully stock a store with even a handful of brands will run you in the tens of thousands of dollars and there are no loans for this.  The margin is really terrible and all the manufacturers are WAHMs and they aren't always stocked.  Natural parenting customers are picky and high-needs.  Ex: You have a pregnant hormonal customer who has to have these exact colors of this exact diaper that she has never used b/c she has no kids yet and she knows nothing about diapers and these are the wrong diapers for her but she has to have them and they are out of stock of one color at the source and then you have this pregnant woman freaking out that her registry "is all out of stock."  Repeat this multiple times per day.

 

Before I had my business, I would look and look for a store with more than 5% off, and no one had free shipping.  Now EVERYONE has free shipping (me included) and new stores are having to give 10-15% off all the time just to get sales, and with free shipping, you are LITERALLY OVER YOUR MARGIN.  These people then go out of business and are in debt or have to declare bankruptcy.  The prices are in a race to the bottom now and many sites are selling at a loss.  I know the prices and I know the shipping costs and many sites are losing money at a rapid clip.

 

Choosing a web cart is actually the easiest part of this.  The setup is fun.  Magento, WAHMShoppes, la la  la.  Choosing product - isn't it fun! - this is the easy part.  Actually being in business requires, as Quirky said, a businessperson with business skills - the natural parenting aspect of it is totally incidental.  We could be selling widgets.  Actually being out in the world, advocating your beliefs - well, there isn't really the opportunity for it like you might think.  Not everyone who shops with you will wear their baby or breastfeed or not circumcise.

 

This is a full-time job in a market that has definitely passed its peak, and you will likely not be able to pay yourself, let alone pay back your investors.  My husband and I both work full-time (actually he works more than full-time) at our successful business, and yet only draw one person's salary.  Given that you are pg, this is altogether a terrible idea - pregnancy saps energy and motivation, and new babies need lots of care.  If I want to come to the store and be able to work, I need childcare for my own kids even though I have my own store.  It is simply impossible to run a store while trying to bf, change diapers, etc.

 

I know that everyone hears what they want to hear, and you sound like you are going to do it anyway, but I would highly recommend listening to the 3 people on this thread with actual experience in this industry (me, Quirky and PoppyMama) and believe that it is a bad idea.  If you want to work full-time and not draw a salary, have to find childcare for your children, and blow $50-100,000 that you will likely never get back, then sure, do it.

post #22 of 23
Thread Starter 

Oh I am not afraid of true feedback. Like I have said before, we are blessed to have very successful business resources at our disposal who will most definitely let us know whether it is a possibility or not. Every idea has a process and we are still in the research phase of this. I need to hear what other owners are saying and what opinions are---how could anyone open a business without this???! I appreciate your honest feedback and I hope that your business will do well now and in the future :) The online cloth diaper company is only one of a few ideas that we have started to consider and may or may not work out! Only time and research will tell! Thanks again!

post #23 of 23

I'm replying so I can subscribe to this thread. I'm super interested to hear what experienced mamas have to say about this. I'm also contemplating doing SOMETHING in this industry...I'm not too keen on starting/taking over an online cloth diaper business, for the reasons that have already been mentioned. I've been supposedly selling diapers for a local business, but I can't sell any because her website is down and has been for as long as I've been a sales rep. The owner has basically lost interest in the business because she can't make any money at it. She runs a diaper service and does make money at that, although she works her tail off, so she's focusing on that instead. I've thought about offering to buy/take over the diaper selling side of the business but it just doesn't seem worth it! 

 

Meanwhile, I'm teaching workshops and charging a small amount for them...I LOVE doing that but I can't imagine ever making real money doing it since there are three or four other moms in my area who are teaching workshops for free. (I used to teach them for free but I've been doing them at a store that charges for the space, so I figured I may as well charge a little extra and get paid something as well.) It's frustrating though...I feel like I have a lot of knowledge that many people don't have and I should be able to make money from it somehow, but I can't figure out how. 

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: WAHM Well
Mothering › Forums › Natural Family Living › WAHM Well › Online Cloth Diaper/Natural Parenting Store... Has the bubble burst?