You may have a great idea for a product and want to start your business right away This might be it, your magnum opus, the thing that will make you a millionaire. So, what’s the next step? What are the dos and don’ts? What are things to look out for before diving into the realm of wholesale business?
A wholesale business is great if you don’t want to deal with the public and all the retail sales problems. If you aim to be a successful entrepreneur and need some push before you can run your own business, you are at the right place.
The Wholesale Business
Before you start to dig deep into the things that make wholesale a much smoother ride, let’s take a step back and understand it first.
Wholesale Marketplace entirely depends on the goods acquired in bulk from manufacturers or distributors. They are later sold in smaller quantities to retailers.
Manufacturers produce these products and retailers sell themto end users. You are the middleman in this whole process.
Now that we have established your role in the supply chain, let’s get to the juicier details.
1.Things to Consider Before Starting a Wholesale Business Identifying the Market
The best way to test the waters is by surveying the market. This is often a neglected step even though it holds the most significance. Knowing your product is great, but knowing what the competition is offering can help you gain an edge in the market.
Carefully examineotherwholesalers, products, and rates.
2. Work with a Good Supplier
Suppliers will provide you with the merchandise. Choosing a reliable supplier that can be a distributor, manufacturer, or even drop shipper is crucial to your business success.
Another benefit of the wholesale model is that you don’t have to order everything from one place. There is less risk of a supplier monopolizing his product for unfair terms.
3. Create an Online Presence
You need to build a strong online profile for your business. Even if you want to establish a more physical wholesaling medium, it’s always a great idea to use the power of the internet
If you are serious about starting your business, you can start by making a vendor profile on wholesale marketplaces like SeeBiz, Alibaba, etc. It not only serves as your introduction to other businesses, but also helps you see other businessesand gauge them accordingly.
4. Scope Out A Storage Location
As discussed earlier, the wholesale model requires you to buy items in bulk and store them in a warehouse. Before you order your first shipment, it’s crucial to arrange a storage location where your merchandise will be safely stored.
Keep in mind, the storage location depends on the type of products.From foodto expensive electronics, each item has different storage requirements.
5. Devise a Fair Pricing Strategy
A decent price speaks louder than anything. If your products fall under a fair pricing strategy, they automatically attract more customers.
Fair pricing helps new businesses gain a significant edge in the market
Overcharging is your biggest enemy. Setting the pricing higher than what the market expects can lead to a bad reputation among the traders and eventually lead to zero customers. So, spendsome extra time ondevising a pricing strategy that benefits both the buyer and you.
6. Keep Shipping in Mind
Simply stocking up your inventory isn’t enough; you’ll also have to move the merchandise to the retail markets. This is a somewhat challenging process but there are several options to choose from.
Similar to keeping multiple suppliers, you can choose multiple shipping services. The one that works best for you can be kept as primary and others as a contingency option. You also have to decide on how much you will be charging customers for the delivery of goods. Even if you offer free delivery, you’ll need to absorb that cost from somewhere.
7. Having Multiple Mediums of Payment
After deciding on a shipping method, let’s talk cash. Yeah! The main reason why you are starting the business in the first place. You have to come up with easy payment methods for your customers.
If you have a physical location then you’ll mostly be dealing in either cash or cheques. Other mediums include bank transfers, card payments, or even credit plans
One thing to bear in mind is that payment gateways are also businesses. They have transactional charges whichshould be kept under consideration while planning a pricing strategy.
8. Dealing with Customers
Customers can either make or break your business. Since you are opting for a wholesale model, you’ll mostly dealing with other business owners. There is a huge difference between dealing with the general public and a seasoned retailer who knows his way around a conversation.
You also have to look after your customers. From Product Quality to delayed courier, anything could go wrong.You’ll have to be the one to prioritize customers and have great return policies to accommodate them accordingly.
Attitude is the key to landing sweet deals with businesses. Your demeanor should be mostly positive and understanding. A happy customer is always a returning customer.
Always keep an eye out for amazing deals from your supplier, keep up with the changing trends of the market, and also provide exclusive offers to your older customers. With continuous effort and dedication, your business will be successful. Best of luck!