Looking for a new business opportunity? Buying wholesale products and selling them at retail prices is a great way to start your own business. However, you will need to do your homework before to make sure that you can have a successful company. If you are already a retail establishment, then you are one step closer to being profitable.
How to Buy Wholesale and Sell Retail
In theory, buying wholesale and selling items at a profit is an easy way to make a living. As the old adage says, “Buy low, sell high.” That is essentially what happens when you buy at a wholesale price and sell at a retail price. There are a few things you should know before selling those first products.
1. Deciding What to Sell
Investigate sources of products before committing to starting a wholesale to retail business. Choosing the right products can determine the success of your business. Make sure that you only choose products that have high-demand, and low-cost, as that is where your profit margin will be.
A good idea is to sell products you have an interest in. For example, if you love technology, consider selling cellular and travel accessories, clothing, or other retail products. If you are interested in the products yourself, you will have the enthusiasm and derive to sell them effectively.
2. Drop-Ship or Self-Ship?
Another consideration for your business is the delivery method for your products. One of the most popular ways to sell wholesale products at a profit is to sell them by drop shipping. This method requires you to do the advertising to sell the products but allows you to have less responsibility for the shipping. The seller makes the sale and then notifies the distributor to ship the item to a customer’s address. The distributor ships the item to the customer, using the seller’s actual address. The distributor ships the item to the customer, using the seller’s actual address. This allows the seller to offer a variety of merchandise without having to maintain their own warehouse. Some wholesalers may not use this arrangement, which means you may have to handle the shipping yourself.
3. Find a Wholesale Supplier
You’ve decided on the types of products you want to sell and how you would like to ship them; now it is the time to find those products. Online distributors offer a range of products you can choose from. For mobile and travel accessories, the best distributor to work with is Naftali Inc., headquartered in Florida.
For other sources, the following criteria should be assessed:
- Do you have to pay a membership fee to join the wholesale club or website?
- Do you have to buy a minimum amount of products to get a good price?
- Can you easily get in contact with the supplier?
- Are there any complaints about the wholesaler?
- Will the company ship to your customers, or will you have to arrange shipping yourself? If you use a local supplier, you may have to drop ship yourself.