When to start a retail business one of the essential things to figure out is from where you will get the goods to sell. Most retailers don’t go for their merchandise and get their goods from wholesalers. Wholesalers are a great source of merchandise as well as are flexible enough to support your business along the way as you grow and evolve. Buying wholesale can be a little tricky at first but as you get used to it, you get to see the benefits it provides. Let me share with you some tips I think might help your retail business while making a wholesale purchase.
What is buy wholesale: wholesale and retail are two different things. As a retailer when you buy goods from a wholesaler, you purchase from a middleman between you and the manufacturer. Wholesale purchase is almost always in bulk and that’s the way you get a discount or rebate on your purchase. After buying goods from the wholesaler, you sell the goods at your retail store at a retail price to make a profit. The difference between wholesale and retail is called the margin- the amount of profit made by the retailer from a sale.
Where and how to find a wholesaler: there are various ways in which you can find a wholesaler. Various e-commerce sites practice wholesale business and have several wholesalers listed on their site. If you keep in touch with some business owners, crowdsourcing from that network is another example to get information about different wholesalers present in the market. This can even help you to know which wholesaler to connect with and which to avoid. Alibaba is one example of an e-commerce market with thousands of retailers, wholesalers, and manufacturers.
How to choose a wholesaler: once you prepare a list of wholesalers you are interested in, collect the information about them by googling them and reading reviews from your fellow retailers working with them. This will give you a good sense of whether to reach out to them or not. Consider factors like what merchandise you sell, what is your price point, is the wholesaler reliable, how much do they know about the product, can they ship the product, etc. Get the right products for your store: take the time to do the math and make sure the products you are purchasing through wholesale are the right product for your store and the price you are offering works for both you and your business. Make use of your POS system to help you crunch the numbers. look for a wholesaler who provides good quality products, is reliable, and supports your evolvement.