Studies show that wholesale trade makes more than half a trillion dollars in the United States alone. In the last few years, it has shown an impressive increase of more than 11%. These are numbers that a seller can seldom ignore and also led many new entrepreneurs and drop shippers to invest in this ideology. That said, selling a product you do not have is never possible.
One of the biggest challenges in this industry is sourcing the right products from the right supplier. Given the myriad of options, you can choose from, finding a reliable supplier is not as easy as it sounds. Fortunately, there are some easy tips that can help you with this. This guide will further provide you with the much-required knowledge, helping you learn how to shop wholesale.
What Is The Wholesale Business?
Before you dive into finding the right products for your online market, you need to understand who a wholesale supplier is. It is essentially a company that buys goods directly from the manufacturer, selling them to retailers at a profit. Without them, manufacturers would have to invest in marketing and promotion, often deemed a major inconvenience.
In simpler terms, they are the middlemen in the supply chain, buying large amounts of a commodity from the manufacturers, often at a discount, which they later pass on to the retailer. Retailers then package this product, put their brand name and sell them individually to consumers. While the price is always negotiable, this helps retailers make a huge profit. Usually, retailers pay about 70% to wholesalers of what is charged to consumers.
How to Find a Good Wholesaler?
With the many options, you might have, finding the perfect fit for your company can be a stretch. This is why it is essential you bear in mind some important things to consider.
Quality Of Products:
Out of the many sites, you can find online, you will see some often stock a fair share of low-quality and knockoff products. You should refrain from doing business with them at all costs. Make sure you research the service properly to avoid being stuck with low-quality products.
Like with any purchase, considering your budget and the asking price is of prime importance. Take detailed notes of the prices offered and also compare them to other services. Always remember that prices are negotiable. The larger quantity you will buy, the better the price should be.
Another easy way of finding the right seller is to understand who will take liability for faulty products. Making sure the company you choose has good customer service is a key part of drop shipping. Check client reviews and their market reputation before you make a decision.
Where to Buy From?
Although the above-mentioned pointers might help, they might be time-consuming. If you are looking to compete on prices or choose to offer a wide variety of products in your business, there is no name better than Alibaba. They are China’s most dominant force in the E-commerce market, and for good reason. Their service is ideal for finding a wide range of products at more inexpensive prices, good quality goods from China, and also white labeled items.
Read more: Things To Know Before Entering The Wholesale Market