Retailing is a great way of owning your own business while bridging customers with wholesalers and manufacturers. In the recent past, a trend like dropshipping has had people trying their best to sell merchandise, resulting in many failures due to a disconnect of three key factors. These include; selling a great product, setting the price competitively, and selling this product at the right time will provide the best bang for your buck.
Now that many people are failing, should I quit? No. Just like everything else in life, retailing requires determination, patience, and knowledge. Other than providing you with a list of wholesale suppliers, this article will talk about everything you need to know about how to buy wholesale.
Examine your needs and resources
The first thing you need to do before buying bulk is to determine your needs. And how comfortably you can afford the specific goods. We usually separate this into three parts; the estimated sales, the previous sales, and the storage space.
- Estimated sales – is the total sales amount the project the remaining inventory will make by the end of a certain period. Consider how healthy the product is, the number of returns or rejects you may get.
- Previous sales – It is mandatory to find out how much you have sold before going back to the market. Your sales history should help you decide on the number of products you need and the variation of the product itself.
- Storage – It is frustrating to get your shipment and lack a place to keep them, and you should find out if you have space left to store your goods.
How to find a wholesaler
Finding wholesale suppliers for your business can be stressful, especially if you are importing from another country. The best way to find suppliers would be spying on your competition to find out who is supplying them. Look for their best sellers while keeping a note to compare with others later on in your research.
Wholesalers can be found by asking people, and this can be through online groups or forums where retailers spend most of their time. You can visit trade fairs and business meetups to network and learn more about where to find legitimate wholesale suppliers. Regardless of where you land your referrals from, keep close contact with these people since they will help you advance.
Do your due diligence
The pool of wholesalers and suppliers is fill with both good and bad characters, and your safety in the process is the most important. Remember to always be vigilant and ensure every lead you get; you follow it up to learn more about them. Find out how long they have been in business, the type of products they deal with, the cost of their products, and the minimum order quantity. You will know more about your supplier through this research before ordering a sample.
Consider your budget
Your budget is your buying power, which plays an important role when buying wholesale. Make sure your budget includes the samples, shipping rates, discounts and promotions, and any other unplanned expenses. A good thing about buying in bulk is that wholesalers can give you more bargaining room to reduce the price depending on how bulky you are interesting in buying.
Unit cost and the quality
Unit cost is the cost of the minimum order quantity offered by the wholesaler or the cost of samples that you receive before making the bulk order. Most samples are priced higher than individual products; however, it is important to have a look at the samples before committing to a bulk shipment. Avoid prices that seem too good to be true compared to other suppliers selling similar products.
When researching or talking to the wholesalers, take note of their customer service to get a feel of how your relationship will fair once you decide to choose them. A good supplier should be ready to get on the phone or reply to your email and provide details about their product. The more detailed and passionate they are about their product, the more likely the product is high quality.
Avoid suppliers who are reluctant to answer your questions and similarly those who are rude or have little to no interest in going over their catalog. Those initial conversations you’ll have with the wholesaler should be your way of learning more about them and their products.
The process of looking for legitimate and reliable wholesalers can be hectic, but once you find them, your retailing journey will get better. This is because having a good relationship with your wholesaler will ensure you get high-quality products at discounted prices.