What does it take to build a brand that parents trust and kids love? For Honeybug founders Jen Kennedy and Rachel Webb, it started with a candid moment in the parking lot when they were busy packing a last-minute baby gift. That frustrating experience sparked an idea that revolutionized family gift giving and taught invaluable lessons about building authentic supplier relationships.
The challenge many entrepreneurs face is not finding suppliers – but building partnerships that foster innovation. Often, business owners approach manufacturing with strict specifications, basically asking suppliers to become order-takers rather than problem-solvers. Honeybug took a completely different approach that transformed their business and could revolutionize yours, too.
Table of Contents
Problem-Solving Paradigm Shift
Building Trust Without Getting on a Plane
The Hidden Truth About Scaling
Building Community in the Face of Competition
Problem-Solving Paradigm Shift
"I think it's really important as you go through this process to not limit yourself," Kennedy explains. "I think that's where I've noticed when I talk to people in the industry, peers or friends, they limit themselves because they kind of have an idea in their mind of what they want and then they go ahead and say, can you make that? I think the way we look at it is, this is our problem. Can you solve it?"
This shift from prescriptive to collaborative fundamentally changed the way Honeybug works with suppliers through Alibaba.com. Instead of presenting detailed specifications, they present challenges. The result? Suppliers become creative partners, often suggesting solutions the Honeybug team never considered.
Take their signature ribbon, for example. What began as Jane tying a handmade bow on each box has evolved, in collaboration with suppliers, into a beautiful elastic system that looks hand-tied but weighs efficiently. “It’s honestly amazing that every time stuff comes in, we’re like, oh my god. Like, yeah, why were we doing this upside down for so long?” recalls Kennedy.
Building Trust Without Getting on a Plane
How can you build trust with overseas suppliers you've never met? Rachel Webb, COO of Honeybug, has developed a practical inquiry system that doesn't require international travel. Her approach involves requesting video tours of facilities, starting with small test orders, and maintaining constant communication through visual aids and pictures.
Webb explains, "Lots of videos, lots of like, let's photograph this and take a picture, and then lots of back-and-forth." This hands-on communication style helps identify suppliers who align with Honeybug's culture and commitment to quality.
The results speak for themselves: Honeybug has maintained an incredibly low return rate of just 1-2% across their gift products, largely because they have built relationships with suppliers who understand their quality standards and respond quickly to customer requirements.
The hidden truth about scaling
Perhaps the most valuable lesson from Honeybug's journey isn't about sourcing—it's about the reality of rapid growth. "I think in the beginning we grew too quickly. And that put a strain on cash flow and resources," admits Kennedy.
Both founders, who come from a corporate background, initially focused on metrics like brand recognition and unit sales. Real success came when they focused on cash flow management and long-term sustainability rather than vanity metrics.
Kennedy emphasizes, "Cash flow is the lifeline of a business." This approach helped them weather a number of challenges from tariff fluctuations to supply chain disruptions while maintaining financial flexibility and strong supplier partnerships.
Building community in competition
What sets Honeybug apart isn’t just their approach to suppliers – it’s also their approach to industry collaboration. Rather than seeing other brands as just competition, they’re trying to create a more collaborative environment where brands share insights and support each other through challenges.
“We’re trying to bring people in so they can have more of a collegiate experience than just a transactional relationship,” Kennedy explains. This philosophy extends to their supplier relationships, where they’ve built partnerships that weather the ups and downs together.
The lesson for entrepreneurs is clear: lasting success comes from building authentic relationships with suppliers, partners, and even competitors, rather than purely transactional relationships.
Are you ready to transform your supplier relationships? Start by switching from "Can you build it?" to "Can you solve it?" Your next breakthrough innovation could be just one conversation away.
