When launching your e-commerce, you have to ask the question of the merchandise: buy wholesale to resell or do dropshipping? Today, I will focus on the pros and cons of buying wholesale to resell the merchandise.
Buying from a wholesaler has a unique advantage: to benefit from reduced rates. Indeed, the more you buy a large volume of merchandise, the lower the unit price. Which means that buying wholesale to resell on your site the items to the unit will allow you to make a greater margin or rates more advantageous than your competitors. Moreover, you are in total possession of the stock and you can manage it at your convenience. You know exactly how many products you have left and when the customer orders it, you can ship it directly. The risks are perfectly controlled.
Buy only non-perishable products, that are light, to reduce shipping costs, and easily stockable. Of course, one can dream of finding the rare pearl, the product without competition, but it is relatively difficult, especially for a first timer. Finally, choose products that can sell for at least 10 times the purchase price to the end customer.
This is essential if you sell your products online. You’ll probably spend up to 50% of the price paid by the end customer on advertising, on Google AdWords for example. This point is certainly the most important if you want to generate a large volume of sales from the start. Also, view this link for more data.
First, all regulated or at-risk categories, such as food and para-medical products, hazardous products, and those that are too similar to existing and protected models must be discarded. Select only products that compete well, and work. Be sure that the demand exists. Choose products that do not require you to have several types of models available. Simply simplify things and choose a product without many possible types of models.
So, if you want to buy wholesale to then resell the merchandise to your customers, it is better to be certain of the quality and also to be able to ensure an effective after-sales service. The hardest part early in your e-commerce life is to find reliable vendors. The search for a wholesaler is not obvious if we do not have a network to advise us.
It is very rare that this type of company has a website or accounts on social networks. For this, the choice of your supplier must be carefully considered. Unlike the first reflex you might have, your ideal wholesaler is not found in Google. Also, view this link for more data.
China is the ultimate production country. They have developed their sales network, therefore, buying has become super simple. That’s because you can order small quantities to test your market. And, you’ll have access to products not found in your country. This is your best opportunity.
On the other hand, you are very likely to come across sites that sell you lists of suppliers that will allow you to buy wholesale to resell. These files are often obsolete and poorly targeted. It’s better to build your own supplier list by searching for reliable sites like the Yellow Pages.
These very serious websites have an up-to-date list of companies that allow you to buy wholesale to resell, which you can sort by industry and location. You will see at a glance the potential partners in your market and also in your region. Indeed, if you start a buying / reselling activity, it may be worth taking a supplier near you. At least you can go to the place to view the merchandise, negotiate and save on shipping costs.
When buying from a wholesaler, you should not only calculate its margin on the purchase price, but also on any packaging, transport, customs or currency conversion costs. Make sure you already have registered your business because a wholesaler may not take orders if you do not provide your registered number. Before embarking on the purchase of merchandise, in order to resell it afterwards, one has to think about all the logistics. The logistics costs and the indirect costs must be fully understood.
By following these few tips, buying wholesale to resell becomes easy. Buying wholesale on the internet for retail resale is now within the reach of everyone.