The promotional advertising products industry is a huge national industry generating more than $23 billion in annual sales according to the Promotional Products Association International (PPAI). The PPAI currently has more than 10,000 distributors and over 4,800 manufacturers.

Promotional products are customized items that companies can brand and offer to customers, clients, employees, sales staff, and prospects, These items commonly include apparel, mouse pads, sticky notes, office items, small tools, household items, magnets, water bottles, coffee cups, writing instruments, backpacks, key chains, tote bags, travel items, calendars, candy, bumper stickers, and more. Promotional items are often used extensively in politics to promote candidates and causes.

The industry is generally divided between suppliers and distributors, Suppliers manufacture and customize the products based upon orders placed by distributors. Distributors advertise and distribute promotional products, The suppliers normally ship the promotional items directly to the customer.

Based on industry data, on average, 80% of businesses keep their promotional products for 12 months or more.

Loyalty programs, sponsored by businesses, offer discounts and special gifts to customers as a way to attract and retain them. Loyalty programs are designed to encourage repeat business and most importantly referrals. Generally, the more the customer patronizes the business that offers a loyalty program, the greater their rewards.

While every type of company utilizes the services of the promotional advertising products industry, the companies that utilize the direct to consumer business model of selling products and services are the companies that make the most use of promotional products.

 

Promotional Apparel

 

Promotional apparel is clothing imprinted with a company's name, logo, or message. Included are shirts, hats, jackets, and all types of uniforms. Promotional apparel is a highly effective type of advertising, and it tends to separate professional businesses from amateur operations. Generally, homeowners are far more comfortable allowing someone with an imprinted shirt, jacket, or uniform into their home or business than someone without such identification. Name tags are a real plus.

 

Dropshipping

 

Dropshipping is a business model in which items purchased from an online retailer are shipped directly to customers by the manufacturer or supplier. When the  dropshipper makes a sale, it forwards the order to a supplier who handles the delivery to the customer, thus permitting the dropshipper to concentrate on other activities such as sales and marketing. It also relieves the retailer from having to maintain an inventory and physical facility. Dropshippers are almost always online retail businesses.

 

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