Jan 28, 2020 - 11:40 PM
Thanks for your question and our apologies for the delayed response. Let me answer this question for you.
For Wholesale distribution of goods, one requires good negotiation and communication skills. The idea is to buy the product at a low price, then make a profit by adding some amount to that price and still make the deal attractive to your customer. The following steps you may follow in order to start your own wholesale business.
- Identify the Market: You will need to do proper research to identify the ideal market for your products. You will need to find dealers, store owners and other customers who will be able to procure the products from you.
Identify the Location of Your Office and Warehouse.
- Along with the above, you will also need to identify a place where you will be conducting your business. Sometimes, space is so scarce and expensive in big cities that you might need to keep your office and your warehouse separate.
Identify your Suppliers.
- You will have to get in touch with manufacturers who will be willing to appoint you as a wholesaler for their products. Many companies will have sales targets for you to meet – so think carefully before deciding on anyone.
Set up a Website.
- If you are considering starting a wholesale business, you will need to set up a website. Through it, you can inform manufacturers that you are willing to do business with them. Your website will also attract retailers who might be interested in selling your products. You can also start selling wholesale on Amazon, which is often referred to as the world’s largest marketplace.
Know Return Policies.
- Check out the policies of different manufacturers, including how they plan to handle any goods returned back to them due to defects or for any other reason. You will also need to check their after-sales service policies.
Get Easy-to-Use Inventory Software.
- You should purchase a simple inventory control software package, which will help you keep track of your products, even if they are in more than one warehouse.
Keep a Strict Payment Policy with your Dealers.
- You should keep strict control over your finances – and also over your dealers since the amounts involved could be quite large compared to if you were selling retail.
By using the above tips, you can ensure that your wholesale business gets a flying start and stays on track in the coming years. Do proper research, and keep an eye out for good deals from your suppliers to stay ahead in the game.