Selling wholesale products can be a very profitable business endeavor!
As a wholesale provider, you sell products in large quantities to a business who then sells the products for retail. As a wholesale business, you will purchase in bulk quantities and won’t have the stress of reporting and paying sales tax. If you are thinking of this endeavor, here are the five easy steps to starting a wholesale business.
Find a Supplier
The most challenging part of being a wholesaler is finding low priced products. Many businesses are now international and low cost suppliers and manufactures are outside of the United States. The internet is your best resource for finding an international supplier, but this resource can prove to be dangerous. Be smart as you transact and conduct business online. Protect yourself from scams. Avoid sending wire transfers to businesses overseas, until you have an established history.
PayPal provides seller and buyer protection, when you buy or sell using an invoice. The invoicing fee is nominal and well worth the protection.
Negotiate Prices
Remember to negotiate to get the best prices possible. This may mean that you will need to buy a higher quantity to get optimal pricing. Having multiple suppliers gives you the ability to strategize your purchases based on the prices you negotiate.
Find Clients
Once you have secured suppliers and negotiated prices, you are ready to find clients. Create the terms and conditions for your wholesale program and give yourself adequate time to pay. Have the products shipped to your business using the funds from your customer deposits. If priced correctly, your clients will pay for your first wholesale inventory. The clients should place a deposit of at least 50% on the product that they desire.
Offer Business Customer Financing
Business customer financing is a great way make your wholesale products affordable for your clients. After placing the deposit, business customer finance gives your customers the option of paying for the product over time.
Financing Your Way offers business customer finance programs for wholesale businesses. The programs are uniquely based on the types of products your wholesale business sells. Your wholesale business will increase monthly cash flow. Contact Financing Your Way today and learn more about how your business can benefit from business customer financing.
Perfecting The Logistics
The final step in creating a wholesale business is perfecting your logistics. Your customers will want to receive their products in a timely fashion and in alignment with the policies of your general terms and conditions. You should invoice your customers separately for the cost of shipping, since wholesale orders may vary drastically in weight dimensions. You will benefit greatly from creating accounts with shipping companies such as FedEx, DHL, USPS, and UPS.