Interested in getting started a wholesale business?
Wholesaling is the act of supplying the products in bulk to a retailer who then resells the products to their customers. Generally, retailers could get discounted prices off their regular retail price based on purchase order quantities. Thus, retailers will be encouraged to place large orders to get higher margins. Many wholesale businesses even set minimum order quantities (MOQs) that retailers must buy in order to carry their products.
Here are some tips to help you start your wholesale business on the path to success.
1. Find A Product to Sell for Your Wholesale Business
You will need to do proper product research to determine what particular products you are going to sell. Make sure that the product you have selected to sell is unique or eye-catching. You could probably use Google trends and compare different product search interests, which makes it possible for you to find a particular product or a trending niche at least. For example, if you are thinking about selling auto parts but not sure if it is a hot niche, just compare it with several other niches at Google Trends. You can easily draw the conclusion that auto products are much more popular than others from the chart.
2. Find A Genuine Manufacturer
We all know that every wholesaler wants to find a genuine manufacturer to get quality products with higher profits, but this isn’t necessarily easy. Many "manufacturers" say they produce products with their own factories, however, they don't always. Thus, you have to contact several suppliers and manufacturers to pick a vetted one. You could use some online free wholesale marketplaces, send inquiries there and get in touch with them.
3. Identify Target Customers for Your Wholesale Business
Identifying your target customers is an essential part of your wholesale business. You will need to find dealers, distributors, store owners and other customers who will be able to purchase the products from you. Before you can start to dive into who your perfect target customers are, you need to have a solid grasp on what it actually is that you do best.
Find out what your target customers are struggling with and match that up with the problem you and your business solutions. If you’re the solution they’ve been dreaming about, it’s a match made in heaven.
4. Identify the Location of Your Warehouse
The Warehouse is one of the most important part for your wholesale business. When selecting warehouse space, you have a number of factors to consider, such as location, price, space and etc. You've got a lot of moving pieces to consider when trying to find a location that suits both your current and future requirements. To ensure a smooth transition to your new facility, take enough time to prepare for the move.
Following the above four tips is essential before starting your wholesale business, when you make these points, your wholesale business is on track to be a success.