Everyone enjoys a good bargain. Therefore, selling quality products at affordable prices easily makes your business a favorite among customers.
However, achieving such a setup can be a tricky balance; on one hand, you have to keep prices low and, on the other, you have to ensure that your business remains profitable.
So, how do you pull this off? By strategically sourcing cheap wholesale products for resale. Better yet, here is a complete guide on how to choose such products and how to buy them wholesale. Read on.
How to Choose the Best Wholesale Products for Resale
It is advisable to always aim for products that are ideal for your target market because they are likely to sell more and earn you better profits.
Let’s discuss some tips to help you identify such products, shall we?
Evaluate the Profit Margin
The potential profit margin of selling a product can help you decide whether or not it is worth investing in.
Take, for example, that you plan to start selling activewear. You can evaluate the profit margin by:
- Requesting quotes from wholesale activewear vendors
- Getting data about the current retail prices of activewear in your market
- Subtracting the average wholesale price from the average market price to get a profit estimate:
Retail Price – Wholesale Price = Gross Profit
For a more accurate profit evaluation, deduct the operational costs and overheads you may incur. If the profit margin is still worthwhile after deducting the costs, then consider it a winning product.
Aim for a Medium Price Point
High-end products, like designer clothes or high-value jewelry, often have good profit margins. However, only a small percentage of consumers can afford them and you may end up making dismal sales.
In contrast, consumers tend to be highly suspicious of very cheap products. For instance, if you sell a set of jewelry at $10 and another at $60, customers are more likely to trust the more expensive set.
Subsequently, it is better to aim for mid-level products because:
- Most consumers can afford them and you may make more sales
- Consumers trust their quality more than overly cheap products
Assess Your Competition
As you consider the suitability of a product for your business and your target market, consider your competition too. Find out:
- How many other vendors in your niche are selling the same product
- Your competitors’ pricing
- The demand for the product versus the number of vendors in the market
If there are too many vendors or if the demand is lower than the supply, it may be best to consider alternative products. Highly competitive markets can be volatile and also tough for a new business to wade through.
Prioritize Strong Demand
Strong demand refers to a situation where customers are highly interested in a product and are willing to buy it. It is ideal because it shows that you would have a higher chance of making profitable sales.
You can obtain such information by researching sales data in your target market. For example, the demand for sanitation products has been steadily high since the start of the Covid-19 pandemic. Google Trends, for instance, shows that online searches for alcohol wipes have been above 50% worldwide. Such data indicates a strong consumer interest in the product.
Look Out for Unique Products
Aim for products that are either entirely new or uncommon in your market. They are likely to:
- Draw curious customers to your store.
- Give you a great headstart because you would have little competition if any.
- Allow you more flexibility when setting prices because you do not have to worry about competitors undercutting you yet.
- Prioritize Small and Lightweight Products
Small and lightweight products are easy to handle, cost less to ship, and require less storage space.
Compare wireless earbuds versus kitchen weighing scales, for example. Both are affordable and have relatively high demand. Still, wireless earbuds are more compact and weigh less than kitchen weighing scales. They may, therefore, be worth considering if you would like to keep your operational costs low.
The products you choose should be durable enough to survive the challenges that come with shipping. Fragile goods present a high risk of losses due to breakage. They also tend to attract higher shipping costs and can be tough to store.
Additionally, ideal cheap wholesale products for resale should be durable enough to offer your customers value for money. Customers may feel ripped off and even rate your store poorly if they buy items from you that become defunct after the first few uses.
Aim for Evergreen Goods
Evergreen products are products that enjoy high demand through all seasons. They are a great choice because they would afford you relatively high and consistent sales.
Examples of evergreen products include:
- Personal care and hygiene products
- Pet care products
- Baby care products
- Toys and games
- Kitchen accessories
How to Buy Wholesale to Resell
Now that we know how to identify the right products, here is a step-by-step guide on how to navigate the buying process.
Decide What You Want to Sell
Take some to research and compare different products then decide what you would like to sell. The steps we have discussed above will come in handy during this step.
Decide Where to Source Your Products
You could choose to source your goods from local or overseas wholesalers. Nevertheless, you will need to consider:
- Which of them offers better prices
- The comparison of costs I.e is shipping goods from abroad worth it despite the costs?
- Product quality
- Lead times
- Supply capabilities
- Import regulations
Obtain the Right Licenses and Permits
Some wholesalers require their customers to present business registration documents when buying goods from them. You may also require such documents to clear your goods at ports if you choose to source your goods from overseas wholesalers.
So, be sure to duly register your business and acquire all the necessary licenses or permits.
Set Up Your Online Store
Setting up a store is a process; you have to decide on details such as themes, layouts, payment methods, and more. cart systems. You may also have to choose whether to set up on an e-commerce platform or create an independent website.
It is thus advisable to get all these details sorted out and have the store ready to launch, to avoid delays when you buy your inventory.
Figure Out Sourcing Logistics
Sourcing logistics include details such as:
- Payment methods
- Shipping terms
- Shipping methods and insurance
- Port clearances
- Delivery details I.e where and when
Most wholesalers may already have in-house solutions for these issues. However, it is wise to evaluate them to see if they match your needs. If they do not, you could choose to negotiate for better solutions or handle your logistics independently or through a sourcing agent.
Consider Multiple Suppliers
Find and compare multiple suppliers from different regions. This will give you a better perspective of the product prices, quality, variety, and supplier services that are available in the market and help you make a better decision.
Browse through the options and create a shortlist of the suppliers that match your preferences. You can then comb through them more carefully to find the most ideal option.
Product suppliers can be highly competitive and this can make it hard to narrow down your options to just one choice.
However, ordering samples can give you a first-hand experience of the quality of a supplier’s products and service. You can then choose the supplier that best meets your requirements.
Negotiate the Terms of Sale
Buying products in bulk gives you some bargaining power with wholesalers. So, do not hesitate to negotiate for better prices, MOQs, or any other sale terms. Most suppliers will, at the very least, try to meet you halfway or make you a counter offer.
Where Can I Buy Cheap Wholesale Items to Resell?
You can find wholesalers through different approaches. Here are a few to get you started.
- A Google Search
A Google search could quickly help you discover suppliers of the products you want to sell. It is advantageous because:
- You can do it at your convenience as long as you have internet access.
- You can find suppliers in any location.
- An online search is far more affordable and time-efficient as opposed to visiting or directly consulting with each potential supplier.
- Online listings and supplier websites make it easy to compare different options and find good deals.
Nevertheless, it is vital to use the right keywords to get the right search results. For example, if you are looking for wholesale diaper bag suppliers, your keywords may include:
- Wholesale diaper bag suppliers
- Buy diaper bags wholesale
- Wholesale diaper bag suppliers China
- Wholesale Directories
Wholesale directories are online platforms that list wholesale suppliers that sell different types of products. Some are free to access while others are only accessible if you have a paid subscription.
Examples of wholesale directories include:
- Wholesale Central
They mainly work as follows:
- You run a search to find the product or type of supplier that you want
- Identify a supplier or a product that you prefer
- Contact the supplier to inquire about the product
- Negotiate and agree on terms
- Request a sample
- Place an order
- Pay for the goods
- The supplier ships the goods to you
- Work with a Dropshipping Agent
A dropshipping agent is a professional service provider that can help you:
- Find a qualified supplier based on your requirements
- Liaise with the supplier to ensure they understand your requirements
- Negotiate fair terms
- Handle the buying process
Prioritize experienced sourcing agents, like Bestfulfill, that have a good reputation, comprehensive services, and unbeatable wholesale prices.
How Do I Store Bulk Wholesale Products?
Buying goods in bulk is cost-effective and lessens the hustle of frequently shipping small product hauls. It, nonetheless, requires large amounts of storage space that most business premises may not have. Consider:
- Getting a Warehouse
You can hire, lease or buy warehouse space so that you have enough room to safely store your products. Before your goods arrive, ensure that the space is:
- Optimized to provide the right storage conditions for your products
- Properly modified to allow easy loading and unloading
- Equipped with storage shelves
- Equipped with a suitable warehouse management system
- Working with a Dropshipping Agent
Quality dropshipping agents, like Bestfulfill, offer warehousing services for your bulk inventory.
Working with them would make inventory management much easier for you because you would no longer have to worry about the space, labor, equipment, software, and other logistics that go into warehousing. You could also request them to fulfill your orders or ship your products on a ‘Just in Time’ schedule.
Sourcing cheap wholesale products to resell can, at first, seem like a huge undertaking that only large corporations can handle.
Yet, on the contrary, any business can do it. You only need to understand how to navigate it and how to partner with service providers that can make the process easier for you.
At Bestfulfill, we cordially work with businesses of all sizes across different niches. We also provide comprehensive sourcing and dropshipping services so that you can delegate all the hard work to us and confidently focus on growing your business.
Contact us for all your sourcing needs, request a quote, and we will promptly get back to you.
- Which Is the Cheapest Wholesale Website?
Wholesale platforms like Alibaba and Global Sources offer incredibly low prices. However, it is difficult to declare one as the cheapest because prices vary between suppliers and based on the size of your order. It is better to compare and find the platform with cheaper prices on a case-by-case basis.
- How Do I Start a Wholesale Business from Home?
You can certainly set up an online store, find suppliers, order wholesale products, and even process orders from your home. That said, you will likely not have enough space to store or manage the inventory efficiently.
It is thus better to partner with a dropshipping agent so that you only handle orders while they handle the inventory and fulfillment.
- How Do I Buy Wholesale Without a Business?
Aim for wholesalers that do not require business permits or source goods through a sourcing agent.