The brief
BrandSHD is my own NZ Shopify store selling perfumes ? a real merchant operation, not a thought experiment. Direct-to-consumer sales were working, but I wanted to test two expansion channels that come up frequently in Shopify Plus conversations: international marketplaces and Shopify Collective as a supplier.
I ran both. One worked. One didn't. Here's the honest read.
Channel 1 ? OnBuy UK (tried it, stopped it)
OnBuy markets itself as a lower-fee alternative to Amazon UK. On paper it looked attractive for NZ ? UK marketplace expansion. Set up the feed, listed the catalogue, started selling.
The numbers: NZD 4,000+ in sales over a few months. Not nothing ? real customers, real fulfilment, real returns handling.
Why I stopped: OnBuy UK's marketplace fees, combined with the thin dropshipping margins on perfume, meant the unit economics didn't work. After fees, fulfilment, currency conversion, and chargebacks, the channel was at best break-even and at worst a loss-maker.
What I learned: Always model the margin BEFORE listing a new marketplace, not after. UK marketplaces carry higher fees than NZ/AU. Perfume is a low-margin category for dropshipping ? the channel might work fine for higher-margin products, but for fragrance dropshipping it didn't.
This is the kind of decision most agencies won't make for you ? they get paid to maintain the channel, not to honestly say "stop running this." If you're considering UK marketplace expansion, I can model the economics for you before you commit to the build.
Channel 2 ? Shopify Collective as supplier (active, working)
Shopify Collective is Shopify's B2B partner network. As a supplier, you list your inventory and other Shopify merchants can carry your products in their store without holding stock. Orders route back to you for fulfilment.
I set BrandSHD up as a Collective supplier. Currently working with one retail partner. Here's the live data:
- 71 orders through one Shopify Collective retailer
- NZD $9,254.95 total sales through this channel
- NZD $130 average order value ? solid for fragrance
- Channel is active and growing
What this proves: Shopify Collective works as a B2B channel for niche products even at low partner count. One retailer ? $9K in additional revenue with no inventory risk and minimal ongoing work ? your existing fulfilment process just handles the extra orders.
What I learned: Collective is a slow-build channel. Don't expect 50 retailers in month one. But for products with brand recognition or category specificity (like fragrance), it's a legitimate way to reach merchants who want to carry your products without committing inventory budget.
Why this matters for your store
Expansion channels ? marketplaces, B2B platforms, Collective ? are real revenue but require honest margin analysis before commitment. A few patterns from running this:
- Different channels need different margin profiles. A 20% gross margin product can't survive a 15% marketplace fee. Model first, list second.
- Slower channels can be better long-term. Shopify Collective grows by retailer count, not by ad spend. Lower ceiling but lower volatility.
- Walk-away decisions matter. Knowing when to stop a channel is as valuable as knowing how to start one.
I've made these decisions on my own money for BrandSHD. I can help you make them for yours ? without the conflict of interest that comes with agency retainers.
