So, You Want to Be a Wholesaler? Here’s How…
by Carrie Hinkel on September 23rd, 2008
As the internet makes contacting and communicating with businesses incredibly easy, more entrepreneurs are considering setting up a wholesaler business. A wholesaler is basically a middleman between manufacturers and retailers. Wholesalers buy products in bulk from manufacturers and then sell them at a markup to retailers. There’s no doubt that wholesaling can be a very lucrative business, especially when you carry a full line of products within the same product category.
Getting started as a wholesaler
Find potential manufacturers - This may sound simple enough but it truly is a time-consuming process, as not all manufacturers are willing to take on new wholesale representatives. You will also need to consider how many manufacturers and products you want to get started with. While some wholesalers carry hundreds or even thousands of products from dozens of manufacturers in a particular industry, other wholesalers only carry products (and some just one product) from a single manufacturer. If you have enough money to invest, you may decide to work with an overseas factory and import one or more products to begin your wholesaling venture. You can find manufacturers by searching Google, looking on sites that connect manufacturers and wholesalers, like Alibaba.com , or attending trade shows.
Deciding which products to wholesale - You will find that most manufacturers require wholesalers to purchase a large amount of products in order to qualify for low wholesaler pricing. With some manufacturers requiring minimum purchases in excess of $10,000, you might choose to start with manufacturers that offer lower minimums, thus narrowing your product options.
Finding a warehouse - A wholesaler differs from a manufacturer’s rep in that a wholesaler purchases products, stores them in a warehouse and then ships them out to retailers. A manufacturer’s rep, on the other hand, simply finds buyers for the manufacturer’s products, without ever first purchasing products from the manufacturer. So, as a wholesaler, you will need a warehouse or fulfillment center to store your products. If you will end up selling to a specific region of the U.S., then it would be wise to have your warehouse within that region. If your buyers are nationwide, then you may want to consider a warehouse in the center region of the U.S., to keep shipping costs at a minimum.
Getting retail buyers to purchase your products - This, of course, is the hardest part as many retailers are stuck in their same purchasing habits and have no desire to buy from a new wholesaler. However, that just means it will take some extra effort to convince them that your prices, products and service are better than the competition. With new retail stores and websites popping up every hour of every day, there certainly isn’t a shortage of market potential for wholesaler. You can find new retail accounts by being an exhibitor at trade shows, through email marketing campaigns, contacting retailers directly, etc.
While the steps involved in becoming a wholesaler aren’t difficult, being a wholesaler does require a large amount of start-up cash in order to purchase inventory. In addition, it will take hard work and on-going networking skills in order to gain and keep new retail clients.
REKHIA OKAKA said...
I am looking to buy wholesale men and women clothing.
sharon white said...
I Want to buy products form your company,my name is sharon white ,5013 E.Harry,wichita,ks 67218
Baj said...
what kind of items are you looking for?
electronics, clothing??
Hal Jordan said...
Is there an ebook available on this? I get my ebooks from showmemyebooks.com and I believe people can submit to them. Would be very interested because they don’t stock the “trash” or “worthless” ebooks that are found all over the internet. Do you have things in adobe reader or set up as an ebook? I’d really be interested to see how this connects…
-hj