Learning how to buy in bulk for resale isn’t easy, But mastering bulk buying early on in the entrepreneurial journey will prove to be a great first step into the business world. And if you put in just enough effort and investment into reselling products, you can build a sustainable source of income in the long run.
Following these steps will allow you to buy goods at a discounted rate from the manufacturer and sell them to your customers, setting a price for each product and marketing your business brand. If you find yourself on the fence about going into this venture, this advice may help you see retailing as an increasingly lucrative income earner. Let’s get started.
Identifying What to Sell
The key to buying in bulk for resale is simple – find a product that is in high demand with low competition, buy low, and sell high. That part is basic economics 101. You want to position yourself to be able to capture the existing demand without going against a host of other sellers. Once you have identified your target product, you can move to the next step.
As a rule of thumb, you want to deal with a product that brings in a good margin. For an online business, target a profit margin of around 20% and 40% is reasonable. To make it easy to land a sale, consider products priced between $15 to $200. Manufacturers usually offer a suggested retail price, which you can use as a guide.
Profitable products are usually small and lightweight. After all, you have to factor in the price of shipping. The larger the product, the more likely you will encounter logistical problems. Even with all the right ingredients, what is even more important than learning how to buy in bulk for resale is timing your purchase to avoid getting timed out by seasonal buying.
Where to Buy Things to Resale?
A single online search for manufacturers of a particular product generates millions of search results to look through. But the thing is, search engines can be manipulated – using the right combination of keywords in your web pages, and that’s all it takes to rank highly. You can do better than a simple online search.
There are a lot of suppliers out there – so you need a tool to zero in on the right partner for the most profitable venture. Updated frequently, ImportDoor lists thoroughly vetted suppliers and provides you with tools to customize your search based on product, import or export, port of entry or origin, Bill of Lading, Notifying Party, and HS Code. It’s the Google of bulk buying.
When it comes to practicing how to buy in bulk for resale, it is important to ensure the vendor is well-established. Using a supplier search database, you have all the data points to find the needle in the haystack. To simplify your search for a vendor, there are some key elements you need to understand as you learn how to buy in bulk for resale.
How to Buy in Bulk for Resale: Locally vs. Overseas
It is easy to oversimplify the difference, but deciding whether to get your products locally or internationally is a little more complicated. The choice comes down to better control, lead time, and cost-effectiveness. There are pros and cons to each, but the key to sourcing goods in bulk for resale work is maintaining a solid supplier relationship.
The greatest allure of local sourcing is saving time and money by getting your products faster. Besides, your customer might have better confidence in what you are selling if you are sourcing them locally. But at times, you will find yourself limited to the technical capabilities, where the production is limited to economies of scale and inefficiencies putting a strain on how to buy in bulk for resale.
When people think of sourcing goods from international suppliers, China is the country that often comes to mind. The country has become the model of a manufacturing economy, complete with a system of efficiency that keeps the sector competitive. But while you will be saving a lot here, you will be spending more on shipping, adding to the local tariffs and tax, longer lead time, and managing a delicate supplier relationship.
What’s Next?
Now for the fun stuff: identifying a promising vendor to do business with takes time and a lot of patience. We have already established where you can find all the suppliers to consider. Now all that remains is narrowing down your options to the right vendor for long-term business success. Verifying the supplier through verifiable testimonies and official documents is a good place to start.
Using the right application and a mix of search parameters, you can skip this step with a single tap of a button. With this step out of the way, you need to request a sample of the product to verify the quality and get a taste of what to expect from customer service. Taking all the necessary precautions is a huge part of how to buy in bulk for resale.
What’s next? Buying the products, of course. Once you have settled for a vendor from the ImportDoor, buying in bulk is the only thing that remains. Identify the number of products you want to purchase. Yes, the more you buy, the more you save, but placing a massive order from the get-go can expose you to problems you are not prepared to handle.
Closing Thoughts
A big part of how to buy in bulk for resale is planning. It starts with picking the best product to get the competitive edge you need in the market. Next, you need to team up with the right partner – and that goes for using the best wholesale marketplace as much as it does for choosing the most reliable supplier. Finally, buy smart, start with a small batch and gauge how your customer base responds before investing in a bigger order.
