Getting into the world of wholesale buying can be daunting, but before you get into that: learn how to buy wholesale first. There are a lot of extra details to track, and you will be faced with decisions and plenty of paperwork. Lucky for you, we’ve put together a list of been-there-done-that tips and tricks that will one day add up to hundreds (maybe even thousands) of dollars in savings.
There’s so much information online with so many articles offering to help you navigate this world, but here’s the thing – not all of them are legit. But if you are reading this, you are set to quickly and confidently source goods in bulk from anywhere in the world. ImportDoor has all the expertise and tools you need to put under one roof. Let’s get started.
What is buying wholesale?
Buying wholesale is when you purchase goods in bulk, mostly directly from the product manufacturer or distributor’s warehouse. After buying in bulk, you resell the goods individually to your customers.
But wait, wholesale buying is not a reserve for businesses only. In fact, people who want to score good deals on household items buy products in bulk to enjoy great discounts. Literally, anyone can get excellent prices on virtually anything if they can spare the time to look up any outstanding offers and source the items they need from manufacturers.
It is as simple as that, but not always this straightforward. In most cases, buying wholesale means shipping from outside the country. That means dealing with paperwork and multiple partners, from suppliers to producers, distributors, and importers. Things can get messy in a hurry if you don’t understand who you are dealing with or how to buy wholesale.
Three Types of Wholesalers
Sourcing the goods to buy in bulk starts by identifying suitable suppliers. There is a lot at stake here, so you should put just as much effort into understanding the suppliers and their capabilities alongside learning how to buy wholesale. Knowing the difference between wholesalers is always an excellent place to start. Here are the three main types of wholesalers:
- Manufacturers – A manufacturer is a company or individual that makes products. The term is used in several different ways, but usually refers to businesses that make things to sell to consumers or other businesses. Some manufacturers produce finished products that are ready to be sold and used. Others make component parts that will be used in larger products assembled by another company. Some companies do both.
- Retail Wholesalers – Once the manufacturers have inventory, retail wholesalers buy these goods and leverage their distribution networks to bring the products closer to the end user. They sell the goods in bulk to other retailers who resell them to customers.
- Merchant wholesalers – They also buy from the manufacturers but sell to other businesses to complete the trade with the end user. Merchant wholesalers sell directly to the end user. Their customers know how to buy wholesale and how much money they can save.
As much as possible, you would want to buy in bulk from the manufacturer. In other words, there is no reason to buy from the retail wholesaler who is also looking to cover a profit margin. At the same time, merchant wholesalers have a profit margin to cover. So, if the minimum order for bulk items from a manufacturer fits your budget, go for it. Otherwise, you can still get a good deal from other wholesalers.
How to Find a Wholesaler?
There is always the option of approaching the wholesaler individually. But if you want to get the best deal out there, you will be better off by taking your search online. Nowadays, every business maintains some sort of online presence that allows interested customers to get in touch with them faster. In that case, the first thing you should consider doing is ‘Google it’.
But wait, there is a catch. Using the typical search engine can be a gamble. The search results will be anything but reliable, and illegitimate wholesalers can work their way up the rankings. To find a better alternative, you can consider a supplier search database like ImportDoor. These applications filter through multiple data points to vet each wholesaler thoroughly.
Moreover, the database offers tools to allow you to filter the results by multiple parameters from product to location. You can crunch the list further using Bill of Lading, HS Code, and Notify Party. That means you have the advantage of only working with a trusted partner. There is no learning curve – filter and view data based on priority and keep essential information front and center.
How to Choose a Wholesaler?
It goes without saying that you should look for vendors that are transparent about their operations. The cost of doing business with shady or unethical suppliers is well-documented. A huge part of learning how to buy wholesale is learning to ask the right questions. Consider vendors that maintain a record of delivering excellent customer service.
Be mindful of the price. As the adage goes, if it sounds too good to be true, then think twice. It is always a good idea to deal with vendors that showcase a deep understanding of the good or niche you are interested in. After all, dealing with the right kind of people will also help pass knowledge of the product that will help you market better.
One more thing, consider the steps you will need to take to order the goods. Some wholesalers operate inefficient ordering processes. You should be able to buy goods wholesale like you would buy from an online retailer. Just remember to be realistic about your expectations and work within your budget.
Closing Thoughts
Whether starting a new venture or stocking up your store, one of the first things you need to figure out is how to buy wholesale. Buying wholesale can seem daunting at first, but with a bit of tenacity and effort, you can spot great deals with greater ease.
