How to Buy
Wholesale Merchandise
Having a successful
retail business depends greatly on offering the right product, at the right
price, at the right time. Therefore, it is paramount to the success of your
business to be able to locate the best sources for those products. Once you
know what products or product lines you would like to sell, it's time to find
places to buy wholesale merchandise.
Buying Wholesale
Merchandise
Before you buy wholesale merchandise for your store, try to
visit a competitor or a store selling a product line similar to what you plan
to sell. Browse the store's product selection, making a mental note of the
brands they carry. What products seem to be selling well? Which items are in
the clearance bin? If you visit a similar store too far away to be a
competitor, that retailer may be willing to share with you the source of his
wholesale merchandise.
Retailers can often find products to sell in their stores by
searching online, joining buying groups, using library resources and attending trade
shows or buyers' markets.
A trade show is one
of the best places to buy wholesale merchandise for your store. Retailers can
find many suppliers, serving the same markets, and their product offerings.
Conduct an online search for tradeshows in your industry to find the nearest
event. Trade shows aren't open to the general public so be prepared to show
proof that you're an established business such as a resale certificate, tax id,
business cards or some other form of license or permit.
Once your store is
open and doing business, it will be easier to find wholesale merchandise to
sell because the suppliers will be coming to you, instead of you looking for
them. Customers can also play a large role in finding suppliers as they
recommend products they would like to see in the store.
Types of Suppliers
Manufacturer - Some manufacturers
will sell their products at wholesale prices directly to the retailer. If they
do, they may sell their products at large quantities or at a high minimum
order. If you have a particular product you want to sell, contact the
manufacturer and ask if they sell directly to dealers. If not, ask what
distributors they sell their products through so you will know where to buy the
items.
Importers - Due to
globalization, importing products has become much easier than it used to be.
Retailers can purchase from importers or buy the products directly from a
foreign company. Before using this type of supplier, do your homework. It is
important to understand all the aspects of the paperwork, shipping time,
product life cycle and all costs involved.
Distributors - A distributor
generally sells a large variety of a certain classification of products. They
must make a profit too, so their prices may be slightly higher than if the item
was purchased directly from the manufacturer. Retailers can buy lower
quantities with little or no minimum order. Some even offer free freight on orders
over a certain amount.
Other Wholesalers and Liquidators - In searching for
products at wholesale prices, you may find wholesalers that don't sell just one
type of merchandise but many, many kinds of products. Some will sell closeouts,
truckloads and pallets of merchandise and even damaged goods. Before buying
wholesale merchandise from this type of supplier, be sure you completely
understand the condition, price and terms of the sale.
Auctions - Retailers can find
many bargains on eBay, the world's largest auction site. Just browse the
Wholesale Lots category of the type of store you have and you'll find tons of
merchandise. Not all product prices on eBay are truly wholesale but if you
spend time watching the auctions and learn how to buy effectively, you're sure
to find a deal. Don't miss out on live auctions for bargains on merchandise for
resale.
Choosing a Vendor
Once you've located several sources of products, evaluate
each vendor on a variety of factors. In order to bring the best merchandise to
your customers, you'll need to buy from someone offering quality products,
reliable delivery and superior customer service. This information can be
gathered through references, marketing material or by simply asking the sales
representative how they conduct business.
Other Factors to
Consider
·
Stability
·
Price
·
Location
·
Shipping
Options
·
Shipping
Costs
·
Customer
Service
·
Terms
of Sale
·
Business
Hours
·
Returned
Merchandise
·
Website
and Online Purchasing
Don't get
discouraged. It may take some time, research and several vendor negotiations to
find the best merchandise to sell in your retail store.
Article by: Maria
Working happily with
National Merchant Services
Happy Processing!!!
Article source: http://retail.about.com/od/buyinginventory/a/buy_wholesale.htm
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