So You Think You Can Retail Cloth Diapers?

You can imagine it already. You’ve been using cloth diapers for almost a year; your collection is growing more and more every payday. Even so, there’s prints stuck in your head you can’t seem to find. BAM! You have the best idea ever:

Open your own cloth diaper company!

You mull it over. The more you think about it, the more you love the idea. You start with your good ol’ friend Google. What comes up? Random cloth diaper manufacturer sites. Next, you go to social media. You delve into the various cloth communities and ask others what they think of your idea, what they’d like to see and if they would be willing to participate in a preorder. The reaction from the community is overwhelming with support. You finally settle on a manufacturer that replied to your email and you get your order started. What’s the worst that could happen?

Well, since you asked…

• Your turn around time (TAT) could be extended. Shipping could be delayed.
• The first preorder doesn’t get enough to cover the deposit, so you leave it open and use your own funds to pay the deposit. ‘It will definitely be filled by the time the diapers are done,’ you tell yourself.
• One customer goes on Facebook and asks if anyone else has ever ordered from you and the backlash begins.
• You start getting disputes, which charge you a $15-30 fee on top of the disputed charge and take up to 75 days to be resolved.
• You have to tell a customer they cannot receive their refund for a product they preordered, so they complain all over social media about your customer service.
• Your order is ready, but you don’t have the funds to pay the remaining balance.
• You’re mentally, emotionally and physically drained before your first order even arrives.

How do I know this? I’ve lived this. I’ve seen this. I’ve watched companies fall before they even get the chance to rise,

So before you go to Google and Facebook and use them as your advisory committee, please read this. I’m no business expert, but I do feel these tips can be tools for your success if used correctly.

Here’s the nine steps outlining what you need to (hopefully) NOT fail as a cloth diaper retailer:

Step 1: Have enough capital

Step 2: Get samples

Step 3: Place your order

Step 4: Take a deep breath

Step 5: Make your mark

Step 6: Be aggressive

Step 7: Get honest reviews

Step 8: Get ready to do it all again

How to (hopefully) NOT fail as a cloth diaper retailer

Step 1: Starting Capital? $5,000 

My first question will always be ‘do you have any capital?’ You should have a MINIMUM of $5,000 you can use as capital. Relying on preorders alone is not the best way to get your business started. It’s risky. You need to establish yourself as a reliable brand. Your first order should always be paid in full, received and sold as stock. If you then decide to start preorders, you already have your foot in the door. Don’t submit a preorder until you have all the funds available. Make sure you are prepared so it does not hinder your business or personal life.

Step 2: Get Samples, about $600

 GET SAMPLES. Do it. Get samples. Get a minimum of three samples from three different companies. That’s nine samples total. Get a variety of diapers and accessories: cover, pocket, wet bag, pod, all-in-one, pail liner…get them all or just three. But always get samples! Once you receive your samples, submit your edits and get new samples made. Keep doing this until your product looks and functions exactly how you’d like it. Additionally, get fabric samples of any prints you want to offer (if choosing your own). Once you think you have a product you like, privately ask close friends (if they cloth diaper) or someone in the community to test all your samples. Get their honest feedback.

Step 3: Place your order, space it out

I HIGHLY recommend using fabric from the manufacturer or at least a majority of its fabrics. There are usually three types of Minimum Order Quantities (MOQ’s): minimum quantity per fabric print, minimum quantity of product style and minimum product per print per style. Confused? It gets easier, I promise!

 Here is an example order form. We’ll say all the fabric is custom. There is a minimum of 150 per print, 300 per product and 50 per print per product.

Usually, a manufacturer will have a lower MOQ if you use its supplied fabric, and it could save you money while getting started. Make sure the majority of your prints are gender neutral. You don’t want to be the company that has all girly or all boyish prints.

If feasible, I would recommend getting eight prints. You can launch with four and then release the rest over the next four months. It allows you time to place and receive your next order so you can maintain timely releases.

Step 4: Take a deep breath

Enjoy this freedom before it all begins. Once your order arrives, your life is full of groups, pictures, packing, answering email and DM’s and dreaming about diapers when you’re not interacting with diapers.

Step 5: Make your (social media) mark 

Choose a site platform and purchase your website URL. You can play around with your site until your order arrives and perfect it. Add some mock products and ask friends or family to visit the site and give you feedback. Setup a Facebook, Instagram or TikTok page to start promoting your business.

Step 6: Be aggressive!

Your order has arrived. Start by counting and inventorying everything. Open a few of each and check the snaps, fabric quality and print. Wash, pull and stretch them. BE AGGRESSIVE! Make sure they’re up to par. Then put them on your model or find models before you start promoting the diapers. The moment you post a stock photo, someone will ask for a real life picture.

Step 7: Get honest reviews

Find bloggers or seasoned parents to review your product. Offer them free products in exchange for their posts and feedback on the items. Always make sure you research them before you work with them. You want people who will follow through. Your best promoter is a cloth diaper parent.

Step 8: Prepare for Launch

Announce your launch date and time. Build up the excitement on your social media accounts. (Don’t pay to promote ads on Facebook. Not worth it at all.) Load your products to the website and set it to open on the correct day and time. Don’t be disheartened if your initial sales are low. It takes time to build a community.  

Step 9: Get ready to do it again

Once your product is launched, make sure you’re ready for the next launch. Don’t submit another order unless you are financially ready. You can open a preorder to ease the cost, but don’t rely on the preorder to give you the funds to pay off your order.

I know it seems like a lot. It is. Before you get started, you think, ‘I get to play with diapers all day and pick out cute prints.’ But that ends up being about 15% of the work. The rest is advertising, replying to customers, back-and-forth with manufacturers and packing orders. It may start out like a part-time job, but it can quickly become a full-time job. It usually takes about three years to start making a profit. All the money you make off sales usually goes right back into production for the next launch.

I’m not saying all this to deter anyone from starting a company. I am saying this because when I started, there were very few people out there to tell me the reality of starting a company in this industry. I made mistakes. I had many missteps. 

I also helped out other companies. I became friends with people I never would’ve met or considered as a friend. I can easily call another business owner and ask their advice without worrying it will negatively impact my business. I’ve given and asked for advice from other retailers. I’ve become part of a community I love and respect. My life has forever changed. I became a retailer. Hopefully, this guide can help you get started.