Just like any other business, starting a wholesale business is not as easy as it seems no matter what you hear from other people or online advocates of wholesale. This is because just like other businesses, it requires time, effort and capital.
These are by no means the only difficulties that you may face when starting your wholesale business, which is why we have come up with 4 tips for starting your wholesale business to help you out.
Let’s get right to them.
1. Research Everything
Apart from the extensive market research that is required when you start a wholesale business, you also need to research every other aspect of your wholesale business. This will help avoid any unwanted situations and help you identify alternatives in case of setbacks.
The main things you want to heavily research are:
- Markets for your products
- Products for your markets
- Manufacturers, suppliers, distributors and dealers
- Retailers and other customers
- Competition (their products, pricing and quality)
- Your office and warehouse locations
- Staff requirements
A good dose of research in all these areas will give you an advantage while starting your wholesale business and you may end up facing fewer problems than usual.
2. Plan Your Supplies
Typically, manufacturers need to appoint you as their wholesaler before you can get goods from them and they may implement certain sales targets for you to meet. If they have distributors that are providing you with goods then those distributors may require a profit split from you.
Planning your supplies by keeping these things in mind is very important when you are new to the wholesale business and it will save you a lot of time, money and energy.
3. Understand Return Policies
This is an integral part of any wholesale business – one that is essential if you want to avoid any unwanted losses of capital and inventory space. Never work with manufacturers that do not outline a clear return policy or respond to returns, and always compare policies of different manufacturers for a better understanding.
Know how they will respond to any returns in case of defects or damages and it is also a good idea to go through manufacturer’s after sales policies. If you have inventory that cannot be sold or returned, not only will you have lost money but you will also lose precious inventory space.
4. Utilize Technology
There are many modern technologies that can help you start a wholesale business like inventory software. These are easy-to-use software that allow you to efficiently track and rotate your goods and help you give correct delivery schedules and quotes to your customers.
Another great way to utilize technology is to use online marketplaces like wilelink that can help you find customers and suppliers from all around the world. They offer a complete marketplace with a wide range of products for you to incorporate in your wholesale business.
Wilelink is easy-to-use and will allow you to get stock from global suppliers and reach larger audiences to grow your business efficiently.
These are our top 4 tips for starting your wholesale business. If you’re interested in learning newer and better ways to do business, you can visit the wilelink website today!