How to Use Wholesale Suppliers to Fuel Your Online Business Sales
If you are looking to buy wholesale merchandise to resell online, you will probably have to work either with a wholesaler directly or buy wholesale lots through liquidation auctions or liquidation websites. But are these the only two options? And what is the best way to stock your online sales business? Finding a wholesale supplier that works for you is probably the most important part of your business. So let us look at what options you have and how to approach each of them.
What to Look For When You Choose a Supplier
There are several factors you need to take into consideration when you are looking for the best supplier for your business. First of all, you need to find a supplier that has a good reputation. This is crucial because it guarantees that you will be dealing with an honest supplier you can trust.
You also need to take into consideration the quality not only of the merchandise itself, but also of the service the suppliers provide. You will need both for a successful business. You will need merchandise that your customers will want to buy, but you will also need it to be reliably supplied to you.
If you are searching online, you should create a list of wholesalers that you think have the right service and products. Then find some peer boards, forums, look for videos online in search of customer experiences. Comments and reviews from previous customers will help you choose the best among those you think would work for you. If their customers are satisfied, the supplier is probably doing a great job.
Besides this, you should consider where they operate, what delivery options they have and whether they are actually selling wholesale merchandise anywhere near you. Having your supplier close to your location is a good way to cut or eliminate delivery costs. This will lower your overall purchase costs and gives you the chance to secure a higher profit margin on resale.
There are many different types of wholesale suppliers, and each type can fuel your online business in different ways. So let’s take a look.
1. Merchant Wholesalers
Merchant wholesale suppliers don’t just supply the product, they have contracts with the manufacturer and work with them.
They sell their products to resellers, retailers, distributors and even other wholesale suppliers. So, if they are producing merchandise that you are looking for, you might get some great deals since there is no markup on such products.
In addition, merchant wholesale suppliers work with many types of wholesale merchandise and don’t have any focus items. They will buy and sell anything that is in demand. This is a good way for you to know what is in demand. You can rely on this wholesaler to keep up with the demand trends and have the merchandise you are selling.
2. Specialty Wholesale Suppliers
If you are looking for a specific product or line of products, this type of wholesale suppliers will probably meet all your requirements.
In addition to finding and offering specific wholesale merchandise like wholesale electronics, this type of supplier will also be able to answer any specific questions you have about a product. This works well for people who are exploring specific niche markets and are looking for a reliable supplier that is also knowledgeable of the product.
#3 Mail Order Wholesale Suppliers
If you can’t find a certain item or wholesale pallet lots of specific items, this could be your best option. These wholesale suppliers will find the products you are looking for and deliver them to you. All you have to do is place your order and the supplier will search for the product.
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4. General Wholesale Suppliers
This type of wholesale supplier works with large quantities of products from a number of suppliers. They then mark up the products they buy to resell them to other distributors, retailers or resellers. But be aware that online resale prices of single items are bordering wholesale so you have to get your budget calculations spot-on if you plan on making money and staying competitive.
5. Drop Ship Wholesale Suppliers
This type of wholesale supplier will purchase wholesale merchandise directly from a supplier. Instead of holding it in their warehouse, they will ship it directly to your address. With these suppliers, you can advertise a product at a certain price online and once you receive the order, you can find the product at a lower price and have it shipped to your buyer. This means you can keep the difference for yourself. This will not only work for brand new items but also for Amazon return pallets or shelf pulls by any other retailer that is liquidating their merchandise.
6. Specific Product Wholesale Suppliers
Unlike specialty wholesale suppliers, who work with a number of specialty items and wholesale merchandise, the specific product wholesale suppliers only work with one product type, be it smartphones, or running shoes or wholesale TVs.
7. Discount Wholesale Suppliers
Buying from a discount wholesale supplier means you will be buying stock at a significantly reduced price. This is because this type of wholesale supplier will only work with discontinued products, or returned and refurbished merchandise.
Although many don’t like working with refurbished merchandise, it has to be noted that of all the products ordered online 30 percent gets returned. However, many products are returned unopened, with nothing wrong with them.
8. Online Wholesale Supplier
This type of wholesale supplier usually doesn’t have a physical location or a warehouse. Their wholesale merchandise is bought and sold at discounted prices. This allows the online wholesale suppliers to add smaller percentages to their purchase price and still make a reasonable profit.
9. Liquidation Auction Sites
When it comes to finding a wholesale supplier that fits your needs, liquidators should certainly be on your list. This is especially true of liquidation platforms that get their products from a greater amount of sources.
In short, retailers that have a huge throughput will use these platforms to liquidate their merchandise. Due to the number of products they liquidate and the way liquidation platforms operate, you will rarely run the risk of being out of stock. This allows you to buy at any time at prices below wholesale from the comfort of your home.
Direct Liquidation is a goTRG company.
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.
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