If you are new to the wholesale industry then it can be pretty daunting. Where do you start? How do you find products at wholesale prices? Where do you sell them and how can you make a profit? These are all questions that you may be asking yourself. But don’t despair – here’s a guide on how to start wholesale buying and some tips on how you can break into the industry and start earning some extra cash.
Understanding Wholesale Buying
Before you can start buying and reselling goods you should understand the process of wholesale buying. Buying wholesale is when an individual or a company buy products from wholesale suppliers at trade prices. Wholesale suppliers are able to offer products at below their RRP, usually because they are sold in bulk. Once the retailer (you) receives the products you can then sell them on to the end user for a profit. Some people use this as a full time job whilst others use it to make some extra cash – either way, how do you start buying products at wholesale prices?
First Steps: Finding Products at Wholesale Prices
The first thing to set you on your wholesale buying way is to find products at wholesale prices. The best way to do this is by researching wholesale suppliers and contacting them for product information. But if you’re planning on searching online for wholesale suppliers it could take you weeks to find the right ones. Not only are there so many to choose from, but there are a few scam companies out there who won’t provide you with stock or who say they have a product when actually they don’t. If you’re looking for reliable and trusted wholesale suppliers then use a wholesale directory to contact them. Directories usually have staff scouring the internet looking for the best deals and checking the credibility of a wholesale supplier so everything you need is in one place.
Before you start searching for wholesale suppliers you need to know which products you are looking for and which products you want to resell. Do a quick Google search to find out what products are currently popular as this could give you some inspiration. For example, a few years ago there was a surge in the number of Havaiana flip flops being bought – they were a fashion accessory that many consumers were looking for. They were (and still are) worn by celebrities at red carpet events and there are a number of wholesale suppliers that could supply these flip flops and other design footwear at trade prices. At the time if you had sourced Havaianas at wholesale prices and resold them online – don’t you think you would have made some hefty sales? That’s why ti’s crucial to keep a check on product trends and you should also consider seasonal goods – selling wellington boots in the summer might be harder than selling swimwear .Once you have a product in mind you can search for the right wholesale supplier and enquire about stock. You should check with several wholesalers to find the best deal and prepare for the possibility of having to buy in bulk – wholesale suppliers usuallt offer the best rates when you buy a job lot of products.
Pricing and Marketing
Once you have bought your items from a wholesaler you are ready to resell them but before you list them online you need to come up with a pricing and marketing strategy. Firstly identify the price you want to resell the product at. You can get a rough idea of its retail value by looking at other retailers that are selling it or by looking at auction sites like eBay to see how much people are bidding. Once you have a few figures you can make a general comparison and come up with a competitive price for your item. You also need to think about how you are going to market your items. You can either resell them online using sites like eBay and Amazon, hire a market stall and resell them or use your own eCommerce site to promote and resell your products.
When you list a product, whether it’s online or not, you need to have a compelling product description on it. This is even more crucial when listing online as is including photos of your product. List key features that you think a customer would want to know including measurements and your returns policy. If you are selling online you also need to give information on shipping costs and times. Once you have gathered all of your information you can list your products and hopefully start marking some profit!