Buying wholesale - a few do's and don'ts....
As most of you know, I have worked with wholesalers
both on and offline for many years and a number of my websites are based
around helping people find and trade with wholesale suppliers.
I receive a fairly constant stream of emails
from customers and potential customers asking various questions about buying
from wholesalers and this has been the case for the past few years.
These questions always increase in volume around this time of the year
as people try and grasp a bit of buying madness that surrounds Christmas.
In view of this, I would like to throw a few do's and don'ts out there
which will benefit anyone new to trading.....
1. One of the most common 'gripes'
I get from people is that they can't find low prices for popular products
online. It never ceases to amaze me how little effort some people
want to put into making money....
The fact is that it is highly unlikely
that you will find the best prices for the majority of products online
- this is especially the case in the UK as many of the larger wholesalers
don't even have websites. More often than not, an online wholesaler
is merely someone that has gone to an offline wholesaler and purchased
a load of stock to mark up and offer to online buyers. If the wholesaler
you are buying from online doesn't have a trade warehouse or premises that
you can visit and purchase from, there is every possibility that they are
not a wholesaler at all but simply a middleman.
Cut out the middleman and pick up the phone
or better still, visit prospective suppliers and build a relationship with
them. Buying wholesale stock online may be convenient but in most
cases you won't be getting the best deal and you may also be missing out
on additional stock that isn't advertised online. Note that this
isn't so much the case in the US where many big wholesalers do have excellent
online 'warehouses' - we are yet to catch up in the UK :-(
2. eBay is an excellent venue for
buyers and sellers BUT it is also the biggest marketplace in the World.
This means that if you want to sell there, you will be in competition with
some of the largest traders in the World. Don't be surprised if you
can buy products cheaper on eBay than you can from your local wholesaler.
Chances are that the seller has negotiated a massive discount for buying
in huge bulk or they may even be importing the products themselves (or
using their buying power to source direct from the manufacturer).
Unless you are in the position of being able to buy in similar quantities,
you simply won't be able to compete on a like for like basis with many
popular product lines.
3. People often email me asking where
they can find a wholesaler for a really specific, niche item (for example
horse-riding saddles). With something so specific, it is highly unlikely
that you will find an individual wholesaler that deals solely in that product.
Often time it will be necessary to make your wholesale purchases direct
from the manufacturer. Therefore, if you are having trouble locating
a supplier for a particular item, don't be afraid to pick up the telephone
to the manufacturer and simply ask them who their main distributors are.
4. I've said it so many times before
but I still get emails about this one - avoid products such as DVDs, computer
games, electrical goods etc like the plague. The profit margin is
tiny and you won't be able to compete with the bigger sellers. I
don't know how much clearer I can make it - unless you want to work for
peanuts, just steer clear of these products. The only exception is
if you can add value in some way and differentiate yourself from the other
larger sellers.
5. Remember too that if you are struggling
to find a product at a particular price, there is every possibility that
what you are looking for just doesn't exist. I have lost count of
the number of times people have emailed me asking where they can buy 'product
A for £x each' and when I have asked them why they think they should
be able to buy it at that price, they reply that 'it sounds about the right
sort of price for a wholesale purchase'!! Seriously - they have just
made up the figure in their head that they 'think' they should be able
to buy at!! Usually in these situations, the figure is wayyyy off.....
6. As with everything, buying and
selling products takes a bit of effort (in fact, it can often take a lot
of effort) but those willing to put the work in are the ones that benefit
financially.
If you want to sit at home and buy stock
online to resell on eBay, then don't be surprised if you find yourself
working hard for minimal profits. If however you are prepared to
visit a few wholesalers, check out the latest stock as it arrives, build
up a relationship and negotiate a great deal with your new business partner,
then you have every right to expect to see a good return on your investments....
Author-Bio: Richard Grady has been helping
people earn online since 1998. eBay sellers find wholesalers for free at:
http://www.wholesale118.co.uk
(UK) & http://www.thewholesaletrader.com
(US).
See also:
Wholesale |
