Buying wholesale to resell is a practice that has existed since the beginning of the trade. It consists of an exchange in which a seller and a buyer obtain benefits. But really, is it worth it today?
In this article we are going to explain how buying wholesale to resell is a profitable and attractive business option for entrepreneurs and merchants. In addition, we are going to tell you what it consists of, what are the advantages and disadvantages of implementing this modality.
Now, let’s analyze the different factors that come into play, so you can understand the context of this type of modality and make the best decision according to your business strategy.
All ready? 🚀
Buying wholesale to resell: what does it consist of?
Buying wholesale to resell is a business model that involves two factors:
- purchases of large quantities of products,
- and a lower price per unit.
A wholesale purchase is the exchange in which a seller and a buyer make a profit. The seller, on the one hand, benefits from the high volume of sales. While the buyer pays a lower cost for each unit.
And what is reselling? Reselling is known as the action of selling an item for a higher price than it was purchased for.
So, when we talk about buying wholesale to resell, we refer to the action of buying products in large quantities to resell them in an online or physical store to the final consumer for a higher cost to obtain a profit.
Now, how do you know if it is the business you want to implement? Before making that decision, define what you are going to market and create a robust and sustainable model.
Next, establish whether your business will be based on your own production, wholesale purchases or the , for example. Everything will depend on the game you want to start with your company to reach the goal: the success of your brand!
💡 If you already have an online store or are thinking of creating one to buy wholesale and resell,!
The benefits of buying wholesale
Let’s start by understanding what are the most relevant benefits of buying wholesale:
1) Lower costs
Purchasing more units translates directly into lower costs. Not only will the prices you access be competitive, but you will be able to negotiate even more depending on the amount you decide to purchase.
Logically, the larger the purchase, the more bargaining power you will have with the supplier.
2) More competitive prices
The option of lowering your costs is going to become the possibility that the final prices of your products (that is, for customers) have more accessible values.
3) Higher margins
Another result of the lower costs of buying in bulk is the potential for higher margins. This translates into higher profits for your business, which you can reinvest in other products or.
4) Make sure you have immediate stock
Buying in bulk also has the benefit of maintaining the continuity of a certain quantity for the season, for example.
In this way, you will ensure that the inventory is sufficient to sell without interruption. Keeping this record will help you not to run out of a product or it will prevent you from having to go out urgently to buy it again.
5) Support manufacturers and workshops
If you want to undertake your clothing business, for example, but you do not have the resources to produce your own merchandise, the ideal would be to hire the services of workshops, manufacturers or model makers.
In this way, you will make your garments with a unique style that reflects the concept of your brand. In addition, you will help other entrepreneurs like you to grow within the industry.
6) Buy time
One of the most precious assets today is time. By avoiding smaller purchases, you will get rid of having to go see each supplier, evaluate budgets, negotiations, payment and delivery conditions, etc.
Wholesale purchases allow you to do all this once in a time that you define, such as by season, for example.
Wholesale shopping options
When buying wholesale to resell there are different business strategies that can be applied. Everything will depend on where you are going to put the focus on your brand.
Let’s look at the most common options:
Buy wholesale finished products
It refers to the wholesale purchase of preparations that are ready to be sold. This means that an additional production process will not be needed.
An example of this might be a bookstore that purchases books as finished, ready-to-market products. If you opt for this alternative, you can try the specific management system for bookstores, publishers and distributors.
An advantage of the finished products strategy is that you can select to buy only items that are already known to be successful and work with your customers.
Buy wholesale products to intervene
Another option is the purchase of items that, unlike the previous ones, are not ready to sell but rather require some type of added process.
One idea is to buy a basic product, perform an intervention that adds value and differentiates it from the competition.
For example, when buying wholesale clothing to resell, plain white t-shirts can be purchased in quantity. Then a stamping process can be carried out to transform them into a unique product of your brand.
How to buy wholesale products to resell them in your online store?
Wholesale purchases are a simple, direct business model with little risk margin. For this reason, it stands out among the alternatives to undertake in the .
The added value is that you will buy and resell products in your online store that have a good reputation in the market.
For purposes, research and select manufacturers or suppliers that offer a variety of items and brands available for wholesale sales.
Before choosing a distributor, manufacturer or provider of wholesale products to resell, analyze the following points to make the best decision:
- the price,
- shipping times,
- The product quality,
- experience in the field,
- credibility,
- and its commitment to social responsibility.
Know more:
Article
What products are profitable to resell?
We bring you a list with some product ideas to buy wholesale and resell in your online business:
- Dress
- watches
- Books
- accessories and jewelry
- Electronics devices
- Cosmetics and beauty items
- Cell phones
- Purses and backpacks
- glasses and thermos
- Office items
💡 If you want to get more ideas to buy wholesale, we share this article with you.
What is wholesale clothing?
We are going to continue with the example of having your , one of the items that is growing the most in online sales.
In the first six months of 2021, e-commerce billing grew 101% according to data from the Argentine Chamber of Electronic Commerce (). Of that percentage, the clothing category ranked second in interest; an item that, in 2020, ranked number four.
Today, social networks have become one of the main channels of communication and promotion of the products of the big brands and also of the entrepreneurs who work in the clothing category.
In this way, the market is democratized and everyone competes based on the positioning of their company, thus achieving the evolution of the local economy.
Let’s start by remembering that a wholesaler is an individual or business entity that sells large volumes of products to retailers. His mission is to liquidate the stock in short periods of time.
Those who are in charge of selling wholesale clothing know in detail how the product they sell works. It is a distribution channel that undergoes high consumption due to its effectiveness in being sold in large quantities.
In other words, the sales agreements made by a wholesaler are usually and they obtain reduced prices from the manufacturers.
Create your free online clothing store and start selling!
Where to buy clothes to sell wholesale
If social networks have done anything, it is to give access to small and medium-sized companies to show their .
On Instagram, Facebook and TikTok it is easy to find garments that are not only varied and are being designed in the country, but also whose prices, in many cases, are affordable.
In addition to hiring the services of entrepreneurs, workshops, model makers or clothing manufacturers, you can also use platforms such as . It is a national platform that has a customer base that offers varied and quality products.
Can you buy wholesale clothing abroad?
The answer is a resounding yes. When it comes to importing and buying wholesale from China, it is also a good option to get products and resell them in your business.
This online sales platform was founded in 2010 and is owned by , a company focused on e-commerce in Asia.
Initially, it focused on business-to-business (B2B) buying and selling. But over time they changed their services and offered direct sales to consumers, including digital payment methods.
Advantages and disadvantages of buying wholesale and reselling online
If you are considering launching your online store and want to evaluate the possibility of buying wholesale to resell, we will tell you what the advantages and disadvantages of this type of marketing are:
Advantages of buying wholesale
- Competitive prices: As we mentioned before, you have to establish a good relationship with your manufacturer. It will depend on this that you offer your items at a good price and that the finances of your business remain balanced.
- Recognized articles: in this business model you will have the option of buying profitable and quality products. One recommendation is to develop a plan to create an effective strategy to promote what you offer on your website.
- Saving money: wholesale purchases represent an alternative to buy in large volumes and save money. In addition to this, your shipping costs are reduced when you receive your merchandise, unlike retail purchases.
This topic may interest you:
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Disadvantages of buying in bulk
- Physical space: having a physical space is essential to store your inventory. In certain cases, it is a point to take into account, especially if you sell delicate products such as frozen foods.
- High investment: although in purchases…
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