Finding a Wholesale Supplier Online Cheaper than Dropshipping
If you have an online reselling career, you may have been involved in or you may have thought about dropshipping. This is how it works. You invest in product marketing to attract customers, and once the order is made, you purchase the product from the third-party seller, which is then shipped to your customer. So you basically just do the online part of the job, without having the actual goods. This is a good way to make a fair amount of income without worrying about storage space.
But it has its disadvantages. Dropshipping is a way to go if you want fewer sales from time to time, but it does not lead to big profit. If you want to improve your business and have a larger income, finding a better way to make money is a must. How can you do that? As we know, reselling is buying a product for less money and selling it for more in order to make a profit. A great way to buy high-quality products for even less money than buying products individually is to purchase wholesale merchandise.
Making More Money Buying and Selling Wholesale Merchandise
When buying wholesale, you choose to buy the products in bulk, whether it’s by a wholesale pallet or a wholesale lot. This leaves you with a lot of merchandise to sell online, which means finding additional storage space. However, the worry about the sourcing merchandise is reduced when you buy your own. On the other hand, needing the additional space should not be a concern because just a corner of your room should be enough to start with. Afterward, you can look for more storage space.
Choosing wholesale for a larger profit margin is a smarter choice than staying in the comfort zone of an unsupplied space. But, choose wisely when investing, because working with a wholesale supplier is not a guaranteed success. You need to do thorough research on your potential suppliers before you start. Pay attention to the services a wholesaler provides, their online customer reviews and their shipping arrangements. Either way, it is the best way to get the products for such a low price (per unit) and the profit margin is larger compared to dropshipping.
The Advantages of Buying Wholesale
As mentioned above, the main disadvantage of dropshipping is the slim profit margin due to buying products individually. Keep in mind that the person you are buying the merchandise from is also making a profit. Therefore, that supplier (retailer or another online seller) has already purchased the merchandise from a wholesale supplier, or at some sort of discount. That being said, a dropshipper has no chance to stand out with a competitive price.
This can best be seen on popular online platforms such as eBay or Amazon as their prices are very close to wholesale. This means that the competition in your niche has already ahead of you in terms of competitive pricing. You risk being left you behind if you don’t change your business ways.
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When you find a reputable wholesaler like Direct Liquidation, your life becomes a lot easier. Buying wholesale merchandise means you can get a wholesale pallet with a variety of goods, not just one type of product. For example, when buying electronics, the merchandise from one pallet can range from laptop to cellphones. For your business, this means that you can cover an undersupplied niche market and other markets as well.
Also, a reputable wholesaler like Direct Liquidation will have a manifest – a full list of each and every product that a pallet contains, with the product description and condition. So, if you are seeking to only supply a specific market, you can easily find pallets with just one type of product.
Top Tips for Making Money Online
Before closing a deal (making a purchase), do your research on the market dynamics. To have greater success in an online business, find a market that is short of supply and fill that gap. If you do the opposite, buy products for a market that is oversupplied, you will need a lot more time to sell the merchandise.
Also, there is a small possibility that you will receive damaged goods which can not be sold at all, and you end up with lost investment and a pallet of unusable merchandise. Knowing that your liquidator or wholesale supplier is reputable is extremely important.
As noted above, reading the manifest is important for having all the information about the product, especially electronic items. A wholesale supplier will offer returned goods, which can be new products but cannot be sold as new anymore, products such as smartphones or tablets. When it comes to such items, detailed information about them is very important. So if a wholesaler is withholding the manifest, and will not share any additional information, stay away from that wholesaler.
According to statistics, over 30 percent of all the items bought online get returned to the seller for a variety of reasons: clients may not like the color of the products, or something else. This may not be the problem if you are a wholesaler because the products get returned to you, and you can remarket it again and sell it to another potential customer. But, if you are a dropshipper, this is a big issue because you ordered your product from a third-party seller. So if the product gets returned, it will be returned to that original (third-party) seller. The same sale cannot be made again, and that is another reason why you should end with dropshipping.
Understanding the advantages and disadvantages of each method is important for making the right choice for your online resale business. Buying wholesale to resell online certainly has many advantages over dropshipping and in general reselling business. It is a way to go for anyone who wants to step up their resale game. Getting a hold of a larger number of cheaper products is incomparable to individually buying and reselling. Be smart and think big.
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Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
Schedule a sales callback with Jordan right now.