Selling wholesale products is a great business idea that requires little work and investment. The main thing you need is good business sense - and this can be learned through online business classes!
The advantages of selling at wholesale prices as compared to retail prices are basically in terms of volume and unit price. Read this article to find out how you can create a business selling wholesale products.
First, find out the formalities of setting up a home-based wholesale business. Since the rules differ from state to state, check with the local chamber of commerce or trading authority as to the licensing and registration process.
Second, decide if you want to store inventory or drop-ship products as and when you get new orders. If you decide to store inventory, you’ll need to invest in storage space, and that means more investment. If you don’t want to invest in physical storage space, then drop-shipping is the best option for you.
Third, select the products or items you want to sell. This will require some research on your part – browse online to see which items or product categories move faster or are in demand by customers. Generally, retail items such as clothing, cosmetics, hair care products, handicrafts and knick-knacks sell quickly, as also shoes, leather accessories and jewelry.
Fourth, search for suppliers from whom you can buy your chosen product line in bulk. There are two ways of doing this:
a. Browse through search engines such as Google or Yahoo! With keywords or phrases such as “bulk suppliers”, “wholesale distributors”, “drop-shipping”, etc.
b. Use ‘product sourcing’ – this involves looking for certain companies that specialize in resourcing products and then list out the same for home-business wholesalers like you to use.
Watch out for sites that provide wholesaler lists, since these are often based on outdated information and do not add any value to your research.
Fifth, look for a drop-shipper who will take care of the shipping and delivery of products for you. Often, genuine wholesale suppliers or distributors are also drop-shippers. This will save you the trouble of looking for a supplier and then for a drop-shipper.
Sixth, scope out insurance requirements that you will need to invest in. To a certain extent suppliers and drop-shippers have their own insurance coverage, and it is best if you piggyback on these.
Seventh, start with a small inventory to test out how quickly you can start making sales. The most popular places to sell online are eBay, Amazon, etc.
Learn what goes into keeping a business running smoothly - you can do this by taking some online courses in business management.
Follow the simple steps discussed above, and you can start selling wholesale products from the comfort of your home right away!