A wholesale business is a good option if you do not want to deal with retail sales or retail customers. Here are some helpful tips that you can use to ensure that your wholesale business provides you with real success.
1. Identify the Market for Your Wholesale Business
You will need to do proper research to identify the ideal market for your products. You will need to find dealers, store owners and other customers who will be able to procure the products from you.
As you start building a brand, you’ll also need to check out the competition, which can be fierce in the wholesale business. Make sure you know what products they carry, their prices and the quality of service that they provide.
2. Identify the Location of Your Office and Warehouse
Along with the above, you will also need to identify a place where you will be conducting your business. Sometimes, space is so scarce and expensive in big cities that you might need to keep your office and your warehouse separate.
However, you will need to hire efficient and honest staff – or even a family member – to ensure that your inventory doesn’t get misplaced or pilfered.
3. Identify your Suppliers
You will have to get in touch with manufacturers who will be willing to appoint you as a wholesaler for their products. Many companies will have sales targets for you to meet – so think carefully before deciding on any one.
In some cases, you will have to get in touch with the company’s distributors if they are not willing to supply directly to you. In this case, there will be a division in profit margins, so you will have to factor in these calculations before you can proceed in dealing with them.
4. Set up a Website
If you are considering starting a wholesale business, you will need to set up a website. Through it, you can inform manufacturers that you are willing to do business with them.
This way, they can contact you instead of you running after them. Your website will also attract retailers who might be interested in selling your products. You can also start selling wholesale on Amazon, which is often referred to as the world’s largest marketplace.
5. Know Return Policies
Check out the policies of different manufacturers, including how they plan to handle any goods returned back to them due to defects or for any other reason. You will also need to check their after-sales service policies.
It is best to steer clear of any manufacturers that you cannot get a clear answer from – or you could end up with a lot of inventory that you just can’t sell.
Inventory that you can’t move is wasted money – period.
6. Get Easy-to-Use Inventory Software
You should purchase a simple inventory control software package, which will help you keep track of your products, even if they are in more than one warehouse.
This will help you in giving proper quotes and delivery schedules to your customers – thus helping you to earn more money by rotating your products in an efficient manner.
7. Keep a Strict Payment Policy with your Dealers
You should keep strict control over your finances – and also over your dealers, since the amounts involved could be quite large compared to if you were selling retail.
By using the above tips, you can ensure that your wholesale business gets a flying start and stays on track in the coming years. Do proper research, and keep an eye out for good deals from your suppliers to stay ahead in the game.