Retailers don’t manufacture their merchandise, they get it from somewhere. Yes! From the wholesalers. The wholesalers are usually the ones that make the products and then sell to the retailers for their use, then the retailers sell in bits to their customers.
Buying wholesale products may not be an easy play at times, especially when you’re new to the game. However, with the proper knowledge on buying these products, you shouldn’t have any problems whatsoever. Let’s look at everything you need to know about how to buy wholesale products.
What Merchandise Do You Sell?
The first thing we feel you should know is the merchandise you’re planning on selling. Yes, think about it. What do you want to sell? Will you be selling a wide range of items or you’re planning on a specific niche? Be sure of the answer to this question because you have to choose wholesalers that sell what you need, and you have to make sure these wholesalers’ products offer is in line with the kind of store you run.
Finding A Wholesaler
If you want to buy wholesale products, then you need to find the people that sell them. The wholesalers or the wholesale suppliers! Well, finding them can sometimes seem like a difficult task. However, it isn’t that hard, you just don’t know where to look at yet.
To find wholesalers, look at where other retailers gather. Trade shows and industry events are also good places you can get one. Also, there are online market places like Alibaba, eBay, where you can find a whole lot of wholesalers and retailers.
Picking A Wholesaler
When you find wholesalers, your next concern might be picking one or a few out of many. If you’re just starting your retail business, you will likely need smaller orders. So, you should consider buying further down the chain to get those smaller orders. Why? Well, it is important to know that as a product passes hands, the price goes up.
Is the Wholesaler Reliable?
Moving on to the wholesalers. In most businesses, there’s always a need to find a reliable partner, isn’t it? When buying wholesale products, you need to make sure your wholesaler is reliable. You shouldn’t work with people you can’t rely on. Remember the wholesalers have a role to play in the success of your business. A wholesaler who delivers late, or shows up with damaged or defective items aren’t good for your business.
How Is Their Knowledge About the Product?
This is one of the vital things to look at when buying wholesale products. Imagine a wholesaler not having a strong understanding of the products they sell. It’s going to be a huge disaster. When you have a wholesaler with a vast knowledge of the products they sell, not only will you be able to share information with your customers, but it also gives you the chance to make sure you know you have a partner who stands out in quality and performance.
Does Their Customer Service Meet Your Needs?
Every chain of business needs good customer service. An efficient and effective customer service that you can easily reach at any point in time is what we are talking about. Find out if the wholesaler has a reliable team that you can easily reach when needed. Most times you’ll need answers to some questions, and if their customer service is not effective enough to give you these answers, then it doesn’t make sense.
What Is Your Price Point?
The merchandise you bought from your wholesale suppliers for reselling is what brings money into your business. That means the amount of money you spend to get the merchandise helps determine how much you profit when you sell it. Therefore, take note of your price points when choosing a supplier, make sure you can get pricing that allows you to hit your desired profit margins.
Talking about taxes, you don’t have to remit sales tax on items you’ll resell if you show the wholesaler a resale certificate. This certificate is used in purchasing goods that you will resell or will be a part of something you sell. The resale certificate proves you’re not buying the wholesale merchandise for personal use but to resell them. If you don’t have the certificate proof, you will have to pay a sales tax.
It’s called wholesale for a reason. The fact is individually sold retail products are sold for more money than the per-item price of wholesale products. When buying wholesale products, you do not pay the market price. You’re buying in bulk. Hence, you pay a lower wholesale price. Also, a product can have different wholesale prices between two buyers.
For example, a retailer who purchases 10,000 pairs of shoes will pay a lower price per pair than another retailer who buys only 1,000 pairs of the same shoes. The rule is, the more goods you buy, the lower the price per unit will be.
For any wholesale purchase, there’s usually an agreement to sign. Before entering into a wholesale agreement, it is important to read and understand the term of your wholesale purchases. Some of the items that might appear in your wholesale agreement are minimum order sizes, details about discounts, delivery schedules, return policies.
There you have it! The wholesalers have a role to play in the success of your business, and figuring out how to buy wholesale products is a crucial step in knowing how much you can actually make at the end of each sale. Well, above are the things you need to know, and at this point, you shouldn’t have any problems with buying wholesale products.
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