Wholesale sourcing is without a doubt one of the most important parts of your business, whether you have an online store or a storefront. You need to know a lot about wholesale sourcing to get the most out of the products you sell and make a name for yourself in the market. Many things about your business will depend on the product you choose and how much you charge for it. These will directly affect your profit margin, the market niche you are in, and where you stand among your competitors.
When you buy in bulk from a reputable wholesaler, you will still be in charge of the products you sell and how they are shipped to your customers. Also, wholesale sourcing comes with its own problems, so in this article, we’ll give you some tips on what to do and what not to do.
How do I start the process of buying in bulk?
Before making a big wholesale purchase, it is important to do a lot of research. In the planning phase, there are a lot of things to think about if you want to have a solid wholesale sourcing plan.
Think about how many products people want.
You have to start by finding the best products to sell to your customers. To find this place, you need to figure out how much people want the products you want to sell in your niche. Even if you really like or care about a product, that doesn’t mean that your customers will feel the same way. Researching the best-selling items on well-known marketplaces like eBay or Amazon can be a good place to start. Amazon has a page called “Best Sellers,” and eBay has a page called “Trending.” These pages let you see what kinds of products are selling best on these sites and get a sense of what is popular. You should also check out the stores of your competitors to see where they are likely to feature their best sellers. This can help you figure out where to look for wholesale products.
Find out which items sell the most.
If you don’t know what to sell in your store to make money, it can be hard. If you want to be a part of the clothing retail business, here are some tips for selling the best-selling fashion items.
Athleisure
Google Trends says that the athleisure trend began to take over the fashion market in 2014, and that it has been a steadily growing segment ever since. Since most people in the world work from home and want to be more comfortable, the pandemic made this problem even worse. This goes along with the fact that people are buying more and more high-end sneakers. Read our article about the best wholesalers of high-end sneakers if you want to get into this market.
Men’s shoes
Men’s shoes are another product category that has grown steadily over the past ten years. Google Trends says that November and December are the best months for sales, but if you look at how interest has changed over time, you can see that other months also show growth. The designer clothing and shoes market is growing steadily, which is why wholesalers like Dropship Empire offer premium brands and styles of men’s shoes at wholesale prices.
Watches
The next area where you might want to invest is in watches. Based on the trends of the last ten years, both men’s and women’s watches are on the rise, as more and more people are buying them. The main thing that drives this market is how each piece is seen as a sign of status. Customers are even more likely to buy a watch if it is made of high-quality materials and has a well-known brand name. Because of these things, designer watches are very popular and something you might want to sell. If you want to buy a designer watch, you might want to check out dropship-empire selection of branded men’s and women’s watches.
Think about your competitors
With every product that sells well or is popular right now, there is a lot of competition. The more popular a product is, the more likely it is that you will have to compete with other sellers when you list it. This could make you and your competitors fight over prices. If you try to sell the same product for as little as possible, you might get customers’ attention, but you could also hurt your profit margin. You need to take a close look at your competition to see if it’s worth it to compete in this niche. If your competitors are big and well-known, have a wide range of products, and are likely to win the battle, it might be best to stay out of it.
Think about everything when setting prices.
Not only will the wholesale price of the product you choose determine how much money you will make on each sale, but you also have to think about how much it will cost to get the product to the customer. When you do dropshipping, your supplier handles packaging, shipping, and keeping track of your inventory. However, when you do wholesale sourcing, things are very different.
Check out the list below to see what you need to include in your prices to get the profit margin you want:
- First, you have to make sure you have enough and good storage for your products, even if you can only buy them in bulk. Second, you have to think about how much it will cost to ship your products in the packaging you want to use. Most of the time, this is the lowest cost, but if you want to “buy low and sell high,” you have to keep track of every small cost that cuts into your margin;
- If you sell on eBay or Amazon, you need to think about the fees you have to pay.
- Lastly, you need to think about how to get the products to your customers once they have bought them. You need to think carefully about how much shipping will cost and choose the best and most cost-effective methods for your business.
Mistakes to avoid when buying in bulk
Now that you know some good ways to find wholesale products, let’s talk about the biggest mistakes you should avoid. These will set you up for success in the future and help you lose less money because you don’t know enough or have enough experience.
When you order way too much from a company
When you work with wholesale suppliers, you can’t usually buy just one unit of a certain product. You will probably have to buy everything in large quantities. Each supplier has different minimum order amounts that you need to be aware of at all times. When you first open your store, you only need to buy the bare necessities. This way, you won’t have to put all your money into one product and will be able to offer a wider range of things. Also, you can test more than one product at the same time. If something you buy works out, you can always go back to your supplier and buy more.
Ordering things that have to be delivered by a certain date
If you’re going to stock seasonal items, you should only order what you’re sure will sell during that season. If you can’t do that and the season is over, the products you still have could hurt your profit margin by a lot. You will have to discount the remaining items in order to sell them, and you will also have to think about how much it will cost to store them. If you are new to the market and still figuring out how to run your shop, it might be best to sell things that can be sold all year long.
Making an effort to get a better deal
When people think they can get a better deal at the end of a negotiation, they are often tempted to negotiate. But do you really get a better deal in the end? When working with a new supplier for the first time, you need to be very careful. If you try to negotiate on your first order, it might not be the best way to show that you are a good person. If you want to build a long-term relationship with your supplier, this could be a problem. Also, it’s easy to get caught in the trap of buying too much. As we said in the first point, you need to be careful about how much you buy when you first start your business. A better idea would be to look for wholesale suppliers who have a wide range of products so you don’t end up with too many of the same models and styles in your store.
Making assumptions
If you make wrong assumptions, it can cost you a lot of money and cause you to lose money. When you start working with a new supplier, you need to make sure you understand all of their terms and conditions. Also, you need to know exactly how the products you buy in bulk will be delivered to you and how they will be packed. This way, you won’t have to buy extra packaging that your supplier already gives you. Also, you need to make sure you know all the costs that could come up while sourcing. You might think that if you buy a lot at once, the shipping will be free. But is that really the case? Don’t be afraid to ask your suppliers questions to avoid wrong assumptions and mistakes that can hurt your margin. Don’t forget that there is no such thing as a dumb question.
Learn the difference between a maker and a seller.
When you buy directly from a manufacturer, you are buying the product from the person who made it, which has pros and cons you should think about. You might have to deal with people who don’t speak your language, deliveries that go wrong, and a lack of customer service. When you buy from a wholesale supplier, on the other hand, you are basically working with a middle man. You can get tremendous support and valuable connections from your distributor.
Wholesale suppliers usually have a whole team of experts and account managers who will help you every step of the way. Manufacturers aren’t very involved in the wholesale sourcing process. Also, they will make sure that you can give your customers brand and quality guarantees on great products. dropship-empire is an example of a wholesale supplier that makes sure products are real and will give you original packaging and product tags, which is rare. This is especially important if you want to buy a lot of branded items. Also, most suppliers offer excellent customer service and even help with running your business so that your store does well.
Conclusion
When you’re starting a business, it can help a lot if you pay attention and try not to make mistakes when you buy wholesale for your store. When you have more experience, these things will be easy for you to do. But it goes without saying that you should always keep a close eye on the market and look for new ways to make money. Never stop researching products and categories you can add to your product mix that might give you an edge over others on the market. Always double-check your potential wholesale suppliers to get the best quality products and deals.