Buying In Bulk To Resell: Advantages And Precautions To Take
When launching your e-commerce, you have to ask yourself the question of the goods: buy wholesale to resell or do dropshipping?
The question of optimizing your stock by precisely avoiding having any has already been addressed in a previous article. Instead, today I’m going to focus on the pros and cons of buying in bulk to resell the merchandise.
The Advantages Of This Method Of Purchase
Buying from a wholesaler has a unique advantage: benefiting from reduced prices.
Indeed, the more you buy a large volume of goods, the lower the unit price. This means that buying in bulk and then reselling the items individually on your site will allow you to make a larger margin or more advantageous prices than your competitors, depending on your expectations.
In addition, you are in total possession of the stock and you can manage it at your convenience.
You know exactly how many products you have left and when the customer orders it, you can ship it directly.
The risks of being out of stock are perfectly controlled.
Buy Wholesale To Resell: Find Your Supplier
The hardest part at the beginning of your e-commerce life is finding reliable suppliers.
Finding a wholesaler is not easy if you don’t have a network to advise you. So if you want to buy wholesale and then resell the goods to your customers, it is better to be sure of the quality and also to be able to provide an effective after-sales service.
For this, the choice of your supplier must be carefully considered.
Contrary to the first instinct you might have, your ideal wholesaler is not in Google.
On the other hand, you are very likely to come across sites that sell you lists of suppliers that will allow you to buy in bulk to resell. These files are often outdated and poorly targeted. It is better to build up your own list of suppliers by searching on reliable sites.
These very serious sites have an up-to-date list of companies that allow you to buy in bulk to resell, which you can sort by industry and location.
You will see at a glance the potential partners in your market and also in your region.
Indeed, if you are embarking on a purchase/resale activity, it may be interesting to take a supplier near you.
At least you can go there to view the goods, negotiate and save on freight costs.
Precautions To Take Before Buying Wholesale To Resell
Before embarking on the purchase of merchandise, with the aim of reselling it afterwards, you have to think about all the logistics around it. Make sure you have already registered your company because a wholesaler will not take orders if you do not provide them with your Siret number.
Buying wholesale to resell also requires notions of accounting.
It is necessary to know perfectly the logistics costs, as well as the indirect costs. When you buy from a wholesaler, you should not only calculate his margin on the purchase price but also on any packaging, transport, customs or currency conversion costs (if you buy abroad ).
Finally, make sure of the seriousness of the company before ordering thousands of dollars worth of merchandise. Be sure to deal with professionals and beware of counterfeits. Always compare the prices of several suppliers, too low prices can hide dubious practices.
Buying in bulk to resell is the method most used by e-merchants.
Very practical, it allows you to fully visualize your stock and manage it precisely. However, it can get expensive if it’s left on your hands.
When you start, it is better to order in small quantities, even if it means having slightly lower margins, to analyze your best sales. As soon as you know your flagship products, you can order them more widely to reduce your purchase price. Do not forget also to always negotiate with the manufacturer, to benefit from even more advantageous prices.
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