Finding wholesale lots online has become much easier over the last few years, with the emergence of quality wholesaler directories and trading websites. If you are looking to start selling on ebay or expand your existing business online you should always be on the look out for quality wholesalers who can provide the latest supplies at the best prices.
It is not difficult to earn a fantastic living on the internet buying and selling goods, the hardest part is sourcing wholesale supplies with good margins. Carry on reading below to find our recommendations for how to deal with wholesalers and find the best wholesale lots at the best prices. All you need to do then is post them on ebay or your website and wait for the sales to start rolling in!
What Is Wholesale?
TheFreeDictionary.com describes the term wholesale as 'The sale of goods in large quantities, as for resale by a retailer'. Bulk buying enables the reseller considerable price reduction as there are fewer companies required to get the product from manufacturer to consumer.
Wholesale lots are usually purchased from the distributor, by the retailer, to sell to the end user. The larger a retailer becomes, the more 'buying power' they have when sourcing wholesale supplies, so can afford to pass these savings on to the consumer.
What Wholesale Supplies Should I Sell?
When starting out in retailing you will not be able to compete with the big boys purchasing power on the size of wholesale lots so your ability compete will be much lower, so you:
1) Cut your profit margins to stay competitive - you need to be careful as you will still have overheads e.g. premises, staff, marketing e.t.c. so you need to make sure these are covered and leave a decent profit for yourself. Do some research before buying wholesale lots to see if this is possible.
2) Choose a less competitive niche - find a market that has less competition from big retailers and you can enjoy better profit margins. There may be a reason for this though, no competitors means no customers.
What Are The Pitfalls Of Buying Wholesale?
Get the best wholesaler and the best product, don't settle for just one, do your homework and research carefully. Make sure the product is quality, spend time choosing products you want to sell and only compare prices on the exact same product. Wherever possible get an authorised wholesaler on a respected website.
Research any prospective wholesaler carefully before dealing with them. Check out their internet presence including customer feedback and ring them up and ask to see their credentials. A decent wholesaler directory can save you a lot of time here as this type of research has already been done. And they will usually get involved with any disputes if you ask them. Ensure all pricing quoted includes extras such as shipping, credit card charges, local and import taxes etc as they can seriously reduce your margin.
The basic rule of retail is 'the profit is made on the purchase, not the sale', this is where having several potential suppliers pays off as you can play them off against each other to get the lowest price which instantly gives you more leeway for pricing at the retail side. There is not a 'correct price' just one that both parties are happy with, there are many factors, the size of the order, your skills as a negotiator, how you are paying, past trading history etc.
It is not difficult to earn a fantastic living on the internet buying and selling goods, the hardest part is sourcing wholesale supplies with good margins. Carry on reading below to find our recommendations for how to deal with wholesalers and find the best wholesale lots at the best prices. All you need to do then is post them on ebay or your website and wait for the sales to start rolling in!
What Is Wholesale?
TheFreeDictionary.com describes the term wholesale as 'The sale of goods in large quantities, as for resale by a retailer'. Bulk buying enables the reseller considerable price reduction as there are fewer companies required to get the product from manufacturer to consumer.
Wholesale lots are usually purchased from the distributor, by the retailer, to sell to the end user. The larger a retailer becomes, the more 'buying power' they have when sourcing wholesale supplies, so can afford to pass these savings on to the consumer.
What Wholesale Supplies Should I Sell?
When starting out in retailing you will not be able to compete with the big boys purchasing power on the size of wholesale lots so your ability compete will be much lower, so you:
1) Cut your profit margins to stay competitive - you need to be careful as you will still have overheads e.g. premises, staff, marketing e.t.c. so you need to make sure these are covered and leave a decent profit for yourself. Do some research before buying wholesale lots to see if this is possible.
2) Choose a less competitive niche - find a market that has less competition from big retailers and you can enjoy better profit margins. There may be a reason for this though, no competitors means no customers.
What Are The Pitfalls Of Buying Wholesale?
Get the best wholesaler and the best product, don't settle for just one, do your homework and research carefully. Make sure the product is quality, spend time choosing products you want to sell and only compare prices on the exact same product. Wherever possible get an authorised wholesaler on a respected website.
Research any prospective wholesaler carefully before dealing with them. Check out their internet presence including customer feedback and ring them up and ask to see their credentials. A decent wholesaler directory can save you a lot of time here as this type of research has already been done. And they will usually get involved with any disputes if you ask them. Ensure all pricing quoted includes extras such as shipping, credit card charges, local and import taxes etc as they can seriously reduce your margin.
The basic rule of retail is 'the profit is made on the purchase, not the sale', this is where having several potential suppliers pays off as you can play them off against each other to get the lowest price which instantly gives you more leeway for pricing at the retail side. There is not a 'correct price' just one that both parties are happy with, there are many factors, the size of the order, your skills as a negotiator, how you are paying, past trading history etc.
About the Author:
A wholesale electronics outlet displays a wide selection of items for businesses to market. Wholesale consumer electronics offers a dependable and high quality range of products for the individual or business.
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