Every brand has to win a first purchase. For an unfamiliar brand, that purchase is a risk for the shopper: money spent on something that might not work, might not taste right or might not be safe. Understanding how shoppers reduce that risk tells brands and retailers where to invest.

The signals shoppers use to judge an unfamiliar brand

With no experience of the product, shoppers rely on proxies. Several are well established in consumer behaviour research.

  • Product information: ingredients, nutritional details, place of manufacture, certifications and expiry dates. Clear, specific information signals that the brand has nothing to hide.
  • Packaging quality: sealed, well-printed and sturdy packs suggest a serious manufacturer. Poor printing or flimsy packaging raises doubts about the product inside.
  • Price: a price far below established brands can suggest low quality rather than value. A price close to theirs asks the shopper to take a risk without a reason.
  • Recommendations: word of mouth from family and friends, ratings and reviews on marketplaces, and content from creators the shopper follows.
  • Retail credibility: being stocked by a trusted retailer transfers some of that retailer's credibility to the brand.

The retailer's role

That final signal is often underrated. A shopper who trusts a supermarket chain or a neighbourhood store owner assumes, reasonably, that the retailer would not stock something harmful or fraudulent. A shopkeeper's recommendation can carry weight that advertising cannot buy. This gives retailers a real stake in which new brands they list, and a reason to take quality checks seriously before doing so.

Online, the equivalent signals are platform reputation, verified reviews, seller ratings and clear return policies. Easy returns lower the cost of a wrong decision, which lowers the barrier to a first purchase.

Reducing the cost of trying

Brands use several tools to make trial less risky: sample sizes, low-priced trial packs, money-back guarantees, in-store sampling and bundling with a known product. Each has a cost, and each attracts some shoppers who will never return. The question is not whether trial can be bought, but whether it converts into repeat purchase.

The evidence that matters is the repeat rate among first-time buyers, separated by how they were acquired. A brand that wins first purchases through deep discounts but sees few repeats has learned that its offer was attractive, not that its product was. A brand whose first-time buyers come back at full price has earned trust.

The decision for retailers is how to use their own credibility. Listing an unfamiliar brand is an implicit endorsement. Retailers that set clear standards for new listings, and make those standards visible to shoppers, can turn that endorsement into a competitive advantage rather than a risk they carry without noticing.

Questions this story answers

How do shoppers decide to try a new brand?

With no experience of the product, they rely on proxies: product information such as ingredients and certifications, packaging quality, price relative to established brands, recommendations from family, reviews and creators, and the credibility of the retailer stocking it.

Does pricing a new brand low help first purchases?

Not always. A price far below established brands can suggest low quality rather than value, while a price close to theirs asks shoppers to take a risk without a reason. Deep discounts can win first purchases but may not lead to repeats.

Why does the retailer matter for an unfamiliar brand?

Shoppers who trust a supermarket chain or store owner assume it would not stock something harmful or fraudulent, so listing acts as an implicit endorsement. A shopkeeper's recommendation can carry weight advertising cannot buy, which is why retailers should set clear listing standards.

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Megha

Senior Correspondent, E-commerce & Marketplaces. Megha reports on e-commerce, marketplaces, quick commerce and the economics of selling online for Retail Tribe.

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