During last march, merchant wholesalers in the US saw $507.4 billion in revenue.
Are you interested in learning how to buy wholesale products to sell for profit?
Read on for 5 tips you need to start your wholesale business.
1. Choose How to Sell Wholesale
There are three main ways you can become a wholesaler. You can buy an existing business, invest in a business opportunity, or start your wholesale business from scratch.
Buying an existing business has its pros and cons. For one thing, you may inherit clients. But you might also be stuck with a less-than-great reputation.
Investing in an opportunity comes with a lot of risks. You should thoroughly research your options before you invest money into it. Check to see if the company is profitable, reputable, and in good standing.
Starting from scratch can be expensive, but it lets you choose exactly how you want to run your business.
You will also need to decide if you want to become a wholesaler full-time or part-time. And if you want to join wholesalers online or have a physical location.
There's certainly a lot of think about, isn't there?
2. Handle the Legal Stuff
You will need to get legal permits and licenses to become a wholesaler. Register your company with your local municipality and get a business license. You can apply for a Federal Tax Identification number.
You'll need your "doing business as" paperwork to open up a business bank account. You will need a resell license and a tax identification number.
Make sure you check your state requirements, as there could be other licenses you need to do business in your state.
3. Find a Distributor
The next step in how to sell wholesale products is to find one or more distributors. There are many websites, such as DHgate coupons, that distribute products you might want to resell.
You should order a conservative amount of initial inventory. Remember, you can always order more if your products are selling well.
4. Set Pricing
Then, you need to set your mark-up prices. It is safe to start with multiplying your wholesale prices by two. This ensures that you have 50% profit margins.
For example, let's say you sell brand name sunglasses and you paid $50 for each pair. If you sell them for $100 each, your retail margin per suit is $50, or 50%.
You might want to set two prices if you plan to sell resale as well as wholesale.
5. Promote Your Wholesale Business
The final thing you need to do to learn how to sell wholesale is to get good at advertising. You might have the best deals in town, but if people don't know about you, they can't buy from you.
Start by getting a website. You can create free websites with sites like Wix. Also, create social media accounts on at least two mainstream channels. Post updates regularly.
You can also place ads online on various websites. There are plenty of free places you can advertise, as well as paying companies to send your ads to their mailing lists.
Finally, don't forget about your physical presence. Attend trade fairs, flea markets, and other events relevant to your industry.
Rent a booth to advertise your wholesale business. It wouldn't hurt to have items for sale there and have some freebies.
Final Thoughts On Launching Wholesale Businesses
There you have it hopeful wholesaler! Those are the top 5 steps you need to start a wholesale business.
We hope you enjoyed this article on becoming a wholesaling expert. Don't forget to share it with a friend who may also want to start a wholesale business, too!
