Like retail, wholesalers sell products for profit. The difference is your end-users. Retailers often sell products directly to consumers, while wholesalers usually sell to companies and retailers. They sell their products in bulk to a retailer or company at a discounted price, so businesses can earn a profit when selling it to consumers.
Wholesale business requires a much bigger capital than retail business, but studies show that it’s more stable.
1. Choose the right products
There’s no rules on how many products you want to sell, but you want to ensure your products are marketable for a long time. Look beyond the trending products and find items that are always in demand and will be needed by companies and businesses for a long time. This will help ensure the longevity of your business.
There are 2 types of wholesalers, the merchant, who sells many different products, and the specialty, who sells to a specific niche. You’ll know which is best for you if you research more on the industry and market in your area.
2. Pick a reliable supplier and manufacturer
Look beyond the prices and go for the best suppliers and manufacturers suitable. You want to compare their supplier management practice and purchase agreement. Check the quality of their products, reviews from other wholesalers, and confirm their reputation especially when it comes to order fulfillment.
3. Create a business plan with a strong financial plan
Create a business plan that determines a good financial plan. It means getting the right number or closest figure you’ll be needing to get your business going month after month. Create a clear picture of your possible money sources, expenses, and profit projection. You want to create more cash flow in your business. You can do this if you’ve made your research on the market and have chosen the right suppliers.
4. Combine B2B eCommerce and personal business partnership
Business to business (B2B) sales are transactions between businesses rather than consumers. Like any other business, making a strong online presence is a good marketing strategy. Also, since you’re doing wholesale, it would give you better mileage to personally meet company and business owners to negotiate and make lasting business partnerships. This is also a good way of showing good customer service in the wholesale business.
5. Hire a good team
Forming a good team is also another key to a successful business. Choose experienced ones, but don’t underestimate those who have no experience but are eager to learn. You want those with good negotiating and people skills. Those who are confident to deal with business owners and know how to make their way in terms of negotiating and conditions.
Is wholesale better than retail business? The answer really depends on your business goals and budget. Good luck!
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