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Guide to sourcing products wholesale for business

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This guide outlines how to source products wholesale for business purposes and retailing, with details of several different strategies to source what you need.

Today, most companies source wholesale for business online via B2B marketplaces. They also do this locally or at trade shows.If you’re set on building a successful business, you might need to think of an effective way to source wholesale products but this is much easier said than done.

Sourcing products wholesale for business

Before sourcing wholesale for business, do some research and choose a product sourcing method that suits your needs, evaluate several different sourcing companies, and then select a supplier type that you would like to work with. For instance, if you’re looking for verified vendors for refurbished electronics from popular tech brands, Go Wholesale might be the perfect wholesale supplier for you. In this guide, we provide a helpful guide to sourcing wholesale products and taking your business to a whole other level.

Sourcing wholesale for business from manufacturers

Manufacturers are the ones who produce the products that you’ll sell in your shops. If you succeed in making purchases directly from them, you can gain access to the lowest prices on products that you’re looking for. The fewer middlemen you have to take their portion of your earning, the lower your costs will total, and the higher your profit margins will be. This is especially the case if you’re pricing your products at competitive rates.

Working with manufacturers can boost your profits but remember that most prefer to produce large orders and have exclusive deals with distributors. The best way is to begin at the actual source of your products because otherwise, you don’t know whether you’ll reach an agreement for access to the wanted inventory at a good price. Asking the manufacturer directly about their minimum requirements is a good tactic but if you have a small shop and budget, they might not sell directly to you.

Sourcing wholesale for business from distributors

Oftentimes, you won’t have the opportunity to work directly with manufacturers to wholesale for business, as they might only sell their products through established distribution channels. if this is the case, then ask the manufacturer to give you a list of their distributors.

The next thing you should do is get in touch with the distributors and set up a contract. This isn’t a bad route to take as it will provide you with access to the most reputable distributors, saving you plenty of time by not having to pursue untrustworthy or low-quality sources for your inventory.

Sourcing wholesale for business from other wholesalers

When you’re unable to establish a direct relationship with a specific manufacturer or distributor, then you can go through a wholesaler who is willing to give you access to low-priced inventory wholesale for business. You can find wholesalers that will accommodate the specific niche you intend to sell in or locate wholesalers that will offer you a wide range of product options.

Rather than buying items at retail prices and reselling them, most shop owners opt for sourcing wholesale for business purposes as they can buy them in bulk at a discounted rate. When you’re not obliged to pay the retail prices on your inventory, you can boost your profits because you can sell them at competitive prices and still enjoy a good margin on every sale.

For any newbies, it’s best to start working with smaller wholesalers and be ready to pay higher prices until your inventory volume expands. You can work with larger wholesalers, buy more inventory and get lower prices as your business grows.

Find the right wholesalers

The United States alone registers around 300,000 wholesale distribution companies so taking the time to do your research on what your options are is a must. Finding the supplier that suits your needs and budget is necessary if you want to be successful.

Many sellers look to China to source products as the most affordable option available. You can search for them on B2B platforms and see which ones are accredited and verified. Narrow the search by the products you wish to sell and use wholesale directories such as the Wholesale Network or Wholesale Central to find local or international wholesalers in a shorter period.

Attending trade shows is a great way to find wholesalers who’re looking for shop owners to buy their products. You might walk away with a great deal or jot down wholesalers that you can explore later on.

Am I ready to source wholesale for business?

Despite being an interesting alternative from the entrepreneur’s point of view, this sales modality is not ideal for any company. Sometimes, you can threaten the viability of your entire business by trying to take a step bigger than your leg. So there are a few questions to ask yourself before starting the wholesale process:

  • Do your products make up a collection or do you have any units that would be interesting for a retailer?
  • Is your brand well developed and has a visual unity
  • Do you have an accurate calculation of your production costs?
  • Is it possible to track the wholesale price while maintaining your profits?
  • Do you have enough physical space for raw material and product storage?
  • Can you advance production costs until you receive the value of the orders?
  • Is your production workflow well-aligned and would it work well if you have to produce fast and in large quantities?

Answering ‘no’ to most of these questions could be a sign that your business is not yet fully prepared to start wholesale sales, and then you may need to better structure your products and logistics – thinking mainly about production costs and your profit margins – so as not to threaten the financial health of the business as a whole. However, if everything seems calm for you, it may be time to expand and profit more, promoting the brand beyond your virtual store!

Final Words

You’ll be able to locate your ideal suppliers and source wholesale products at a low price if you have the right strategy in place. If you decide to work with several wholesalers, make sure to collaborate with suppliers who’ll deliver top-quality regardless of where the products come from.

The goal is to match yourself with the right wholesalers and make them an integral part of your thriving business.

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