Quick answer: To get into shops, price your product so that a retailer, and later a distributor, can each take their margin and you still make a profit. Start with a few local shops on outright sale or short, written consignment terms, and use fairs and haats to test prices and meet buyers. Government fairs such as Dilli Haat, IITF and Saras Aajeevika Melas each have their own entry route, usually through a government department or your state’s pavilion, and selling to government departments happens on GeM, the Government e-Marketplace.
Understanding margins before you approach anyone
The most common mistake is pricing for direct sale and then finding nothing is left for a shop. Work backwards from the price the customer pays (the MRP, for packaged goods).
| Who | What they do | How they earn |
|---|---|---|
| You (maker) | Produce, pack, label | The difference between your cost and your selling price to the trade |
| Distributor or wholesaler | Stocks your product and supplies many shops, often on credit | A margin on the price they sell to shops |
| Retailer | Sells to the customer | The difference between their buying price and the MRP |
An illustration, not a standard: if your MRP is ₹500, a shop might expect to buy at ₹350 to ₹400, and a distributor would then need to buy from you below that. Margins vary widely by category, city and shop, so ask several retailers what they expect before you fix your price.
Rules of thumb:
- Your cost (materials, labour, packaging, transport and GST) should leave you a profit at the lowest trade price you offer.
- Keep one price list for retailers and one for distributors, and do not undercut your own retailers when selling direct.
- Agree payment terms in writing: cash, 15 days or 30 days. Small businesses registered under Udyam have legal protection on payment delays; see our guide on the MSME 45-day rule.
Approaching shops and distributors
- Pick the right shops. Visit stores where your kind of customer already shops: gift shops, organic stores, boutiques, chemists, cafés.
- Prepare a one-page sheet. Product photos, sizes, MRP, trade price, minimum order, shelf life, and your GSTIN and FSSAI number if applicable.
- Carry samples. Let the owner try or handle the product. For food, offer a tasting unit.
- Start small. Offer a trial quantity, for example one carton or a dozen pieces, rather than asking for a big order.
- Make reordering easy. Leave your WhatsApp number and a printed price list. Visit or call when you expect stock to run low.
- Look for distributors once you have proof. A distributor wants to see that shops reorder. Show sales records from your first retailers.
Consignment vs outright sale
| Outright sale | Consignment (sale or return) | |
|---|---|---|
| Who owns the stock | The shop, once it buys | You, until it is sold |
| When you are paid | On delivery or on agreed credit | Only after items sell, usually settled monthly |
| Risk of unsold or damaged stock | The shop’s | Yours |
| Best for | Proven products, regular reorders | New products, high-value crafts, a shop that will not risk money yet |
If you agree to consignment, put it in writing:
- a delivery note listing every item, quantity and price, signed by the shop
- the shop’s commission or your selling price to them
- when they will settle (for example by the 10th of each month)
- who pays for damage, theft or soiling
- how long they keep unsold stock before returning it
Count stock and collect payment on a fixed date each month. Consignment without records is the fastest way to lose stock.
Government-backed fairs and haats
Fairs are useful for selling, testing prices and meeting shop owners and bulk buyers. Rules for stall allotment change, so contact the organiser directly before you plan.
Dilli Haat (Delhi)
Dilli Haat is run by the Delhi Tourism and Transportation Development Corporation (DTTDC), with haats at INA, Pitampura and Janakpuri. Stalls are given to craftspeople on a rotating basis, with most sellers staying for about a fortnight, and allotment has been linked to registration with the Development Commissioner (Handicrafts). Check the current rules, fees and application route with DTTDC; we could not confirm them from a current official page.
IITF (India International Trade Fair)
IITF is organised every year by the India Trade Promotion Organisation (ITPO) in New Delhi, traditionally from 14 to 27 November, at the Pragati Maidan complex, now Bharat Mandapam. States and union territories run their own pavilions. For a small business, the realistic route is often through your state government’s pavilion or a ministry or scheme pavilion, rather than booking space alone. Ask your state’s industries department or MSME office early in the year.
Saras Aajeevika Melas and eSaras
Saras Aajeevika Melas are fairs for products made by women’s self-help groups (SHGs) under the Ministry of Rural Development’s livelihood mission. If you are in an SHG, ask your block or district rural livelihood mission office how members are nominated; we could not confirm the current selection process from an official page. The mission also runs eSaras.in, an online store for SHG products that PIB says is live on ONDC with over 800 handcrafted products.
Other fairs worth asking about
Your District Industries Centre, state handicrafts or khadi board and the MSME Development and Facilitation Office in your state often know about subsidised stalls at local and national exhibitions. Ask them what is coming up and how stalls are allotted.
Making a fair pay
- Calculate your break-even: stall fee, travel, stay and food, divided by your margin per piece.
- Carry enough stock for the best day, a card machine or UPI QR, carry bags and business cards.
- Collect contacts of shop owners and bulk buyers, with permission, and follow up within a week.
Selling to government on GeM
GeM (Government e-Marketplace) is the online portal where central and many state government departments buy goods and services. It was launched on 9 August 2016 by the Ministry of Commerce and Industry and is run by GeM SPV, a government-owned company. Under the General Financial Rules, 2017, central government buyers are required to use it for products listed there.
Points for small sellers:
- Scale: Economic Times reported in August 2026 that GeM had over 25 lakh registered sellers, including over 12 lakh micro and small enterprises, which accounted for 45.6% of total order value since launch.
- Womaniya: an initiative launched in January 2019 to help women entrepreneurs and women’s SHGs sell handicrafts, handloom, accessories and similar products directly to government buyers.
- MSE preference: the Public Procurement Policy for Micro and Small Enterprises Order, 2012 gives MSEs advantages in government purchase. NSIC’s Single Point Registration Scheme is one way for MSEs to claim these benefits.
Steps:
- Get your Udyam registration and GST registration in order, with a business bank account.
- Register as a seller on gem.gov.in and complete your profile and verification.
- List products in the right category with specifications, price and delivery terms.
- Watch for bids and direct purchase orders, deliver on time and upload invoices for payment.
GeM’s rules on registration, any seller charges and payment timelines are set out on the portal and change; read the current seller terms before you list.
Common mistakes
- Pricing with no room for shop or distributor margins.
- Consignment with no signed delivery notes.
- Taking a big order on long credit without checking the buyer.
- Booking an expensive fair stall without working out break-even.
- Listing on GeM without the capacity to deliver to distant offices on time.
FAQ
Q: How much margin do shops expect?
A: It varies by category and shop. Ask several retailers what they expect and build your price backwards from the MRP.
Q: Is consignment a good idea?
A: It is useful for new or high-value products, but you carry the risk. Use written terms and count stock monthly.
Q: How do I get a stall at Dilli Haat?
A: Apply through DTTDC. Allotment has been for registered craftspeople on rotation, but check current rules with DTTDC.
Q: Can a small business take part in IITF?
A: Yes, often through your state’s pavilion or a ministry pavilion. Contact your state industries department or ITPO early.
Q: Do I need Udyam registration for GeM?
A: To claim MSE benefits in government buying, you need to be a registered micro or small enterprise. Udyam registration is free.
Q: Is there a special route for women on GeM?
A: Womaniya, launched in 2019, supports women entrepreneurs and women’s SHGs selling handicrafts, handloom and accessories to government.
Official links
- Government e-Marketplace (GeM): https://gem.gov.in
- NSIC (Single Point Registration): https://www.nsic.co.in
- ITPO, Bharat Mandapam: https://itpo.gov.in
- Delhi Tourism (Dilli Haat): https://www.delhitourism.gov.in
- eSaras: https://esaras.in
- Udyam registration: https://udyamregistration.gov.in
Last checked: October 2026. Rules, limits and fees change; confirm with the official source before you apply. This guide is general information, not legal, tax or financial advice.
Sources: PIB (July 2025); NSIC website (October 2026); Economic Times on GeM milestone, via public summary (August 2026); Wikipedia summaries of GeM, Dilli Haat and IITF with their cited sources (October 2026); ITPO website (October 2026).
