Buyer’s Guide to Sourcing & Selling Wholesale Merchandise

Introduction

In this guide, we’ll explain what wholesale merchandise is, how to source a reliable supply of wholesale merchandise, what type of wholesale merchandise you should be selling depending on your business’s size and location, the different places you can sell your wholesale merchandise, the difference between offline and online sales, how to make the most out of your money to increase your profit margins and how to make a success of buying and selling wholesale merchandise.

What is Wholesale Merchandise?

In a nutshell, wholesale merchandise is goods bought in bulk by retailers, resellers, exporters etc. from a number of different suppliers including manufacturers, wholesalers and liquidators that are sold at a much lower price than their MSRP value. Wholesale merchandise is the lifeblood of most retail, wholesale and export businesses.

By buying wholesale at a vastly reduced cost, retailers, wholesalers and exporters can sell the goods on to their customers at a higher price, thus creating a profit margin that can be plowed back into the business. Bulk-purchased wholesale merchandise is shipped all over the world via an inter-global transportation network that incorporates roads, rail, the air and the seas and oceans.

What are the different types of Wholesale Merchandise?

Liquidations

Merchandise that a company such as a large national retail chain needs to dispose of, often discreetly. Liquidated stock is an umbrella term for bankrupt stock, surplus stock, canceled products, company overstocks and various other types of stock.

Closeouts

‘Closeout’ is the term given to stock that has come from a business that is in the process of closing for good for a variety of reasons; from a business that has been declared bankrupt where the stock has been handed over to liquidators for sale by auction; and to stock that has come from such things as fire sales.

Customer returns

This is merchandise brought back into the store or sent back online by customers. Instead of trying to resell it themselves, retailers prefer to offload this type of merchandise on to third parties such as liquidators and stock buyers who agree to sell it on to retailers, wholesalers and exporters at a vastly reduced price.

Overstock

It’s common for retailers to overstock their warehouse shelves with products. Guessing customer demand for any given line of product is an inexact science, and there will always be a surplus. As space in a retailer’s stores and on its warehouse shelves is always at a premium, there comes a time when this surplus must be cleared to make way for new product.

This stock is sold on at a very low price to companies such as liquidation marketplaces, where it is bundled up into wholesale pallets and offered up for auction and bid on by retailers such as flea marketers, online retailers, discount sellers and exporters.

Shelf pulls

This term refers to stock that has been used as in-store display items, testers and box shelf samples. At the end of a product’s run, these items are bundled up and handed over to liquidators and stock buyers. They therefore often show very visible signs of wear and tear, and thus tend to sell for a fraction of their retail value.

End of life product

These are products that have a manufacturer- or retailer-designated end of life, such as software and hardware products, cars and the toys fast food chains bundle up with children’s meals. For example, a computer game such as Call of Duty has a designated shelf life, with a new iteration of the game being released every November, and online support being wound down and eventually phased out altogether over time.

This does not, of course, render the previous iteration worthless, as there are still plenty of people prepared to pay for an older version of the game which will have many years left to run regardless of newer versions being available.

Refurbished

Reconditioned stock that has been brought back to a nearly-new condition. When it comes to electronics equipment, in particular, this type of merchandise is ideal for those wanting to get into overseas exporting. Not everywhere in the world has a population with the money to spend on shiny new iPhones and iPads, and the second-hand market in places such as sub-Saharan Africa and China is thriving. Shipping bulk electronics to emerging overseas markets can prove to be a very lucrative business, though it comes with its own risks and costs.

Finding Wholesale Suppliers

Finding the right supplier is crucial for succeeding as a reseller of wholesale merchandise. You’ll want to take your time locating the supplier that’s right for you, placing special emphasis on finding one that’s as local to you as possible to cut down on freight costs and increase your margins.

Remember:

• Search by product online to find wholesalers quickly.

• Add your zip code to your online searches. This will bring up wholesalers in your area, helping you to reduce the price of shipping and handling costs.

• Use business search directories such as YellowPages.com to pinpoint suppliers.

• Check out online trade association websites, local and national trade directories.

• Try searching on dedicated wholesale directory sites such as Wholesale Central.

• Try searching on liquidation auction sites such as directliquidation.com. You can search for stock directly on the site, and with such features as shipping calculators, auction email alerts and distribution centers located across the county, you’ll find wholesale products cheaper than pretty much any other source.

A whole host of different businesses sell wholesale merchandise. These range from the manufacturers of the goods themselves, to distributors (flippers), retailers, liquidators and exporters.

Manufacturers

Some manufacturers are prepared to sell the goods they make directly to the reseller, but instead of selling their products at retail price, they’ll sell at the wholesale price instead. This is particularly useful if you’re a retailer of one particular product (or line of similar products) that you consistently need a regular supply of.

By ordering in bulk, you may be able to negotiate a big wholesale discount with a particular manufacturer, thus cutting out the middleman and lowering your costs (and therefore increasing your margins). Building up a relationship with a manufacturer is key to the success of this type of purchasing model, as is having the financial clout to pay for large bulk purchases.

Smaller businesses looking to purchase small amounts of goods direct from a manufacturer may be disappointed, as many of the larger manufacturers such as Microsoft and HP are only interested in dealing with large wholesalers who will buy large amounts of goods from them. Luckily, there are plenty of other channels available for the smaller wholesale buyer.

Distributors

Often referred to as ’flippers’, distributors specialize in selling a large range of goods within a certain niche, i.e. an electrical distributor, or a toys and games distributor. While not usually as cheap as buying wholesale direct from a manufacturer, it’s usually possible to buy a smaller amount of stock from a distributor than it is from a manufacturer.

This is particularly advantageous for those looking to buy merchandise on a tight budget. Distributors tend not to restrict how much can be ordered from them (no minimum order), and many offer free freight shipping, which will greatly help contribute towards raising your business’s profit margin.

Wholesalers

Wholesalers differ from distributors because they tend to carry a much wider range of stock from multiple manufacturers and producers. Wholesalers also tend to impose minimum order requirements on their merchandise so, unlike a distributor, you can’t buy a small amount of stock from them.

However, with a larger range of merchandise to choose from sold at a greatly reduced price, a wholesaler might be the way to go when buying wholesale merchandise if you are looking to buy over their minimum order stipulation.

Liquidators

Liquidators carry a huge range of liquidated, overstocked, surplus, customer returned, reconditioned and scrap stock which they source from a wide range of suppliers, including from some of the biggest retailers in the country such as CostCo, Best Buy, Walmart and Target. Liquidators usually sell their goods in pallet loads, often via live auctions that take place on online liquidation marketplaces.

A trusted liquidator will usually be an accredited member of the Better Business Bureau. This ensures that the descriptions the liquidator gives on their websites are accurate and the goods you buy from them will arrive as described. Building a good relationship with a trusted liquidator can save a wholesale buyer an enormous sum of money, as liquidators have a lot of flexibility with what they can charge for the goods they handle.

Auction Houses

Buying wholesale goods from an auction house can be a bit of double-edged sword. On the one hand, you can get a huge quantity of stock for a very low price; however, there’s no guarantee that that stock is going to be any good, meaning you might have wasted both your time and money. Online auctions are a better bet, as long as you learn to spot the signs of a good bargain, learn to buy effectively and make sure you set up alerts so you don’t miss out on live auctions starting.

What type of inventory should you sell?

That’s entirely up to you, but there are certain types of merchandise that sell better than others depending on where you plan to sell them (see section below on where to sell merchandise). As a rule of thumb, there are year-round sellers, big ticket sellers and seasonal sellers. Here are some examples of the different types of merchandise:

• Year-round merchandise – Food, toiletries, cookware, clothing.

• Big-ticket sellers – TVs, computer equipment, software and hardware, hi-spec gadgets such as iPads and smartphones.

• Seasonal sellers – Halloween costumes, Christmas decorations, beach towels, bikinis, sunscreen.

Let’s look at one example from the big-ticket category – consumer electronics. There’s a huge range of products that come under the banner of consumer electronics, and there are many opportunities to be had from specializing in buying this type of merchandise and selling it on to your customers both domestically and around the world.

Due to the fast-paced advances in consumer electronics, there is a bewildering array of products available to buy out there. Take iPhones. Over the last ten years, there have been fifteen different versions of this award-winning product. With Apple devotees eager to ditch their old phones the minute a new version comes out, and with retailers overstocking older phones, wholesale buyers and resellers can pick up pallets of new, nearly new and reconditioned iPhones for a fraction of their retail value.

But why would they do this? Why would they buy obsolete, outdated technology? Well, the answer is simple – not everyone in the world is on the hunt for the latest iPhone, the latest laptop, the latest smartphone, the latest tablet, etc. In some parts of the world such as in many countries in Africa, there is not the kind of mobile and wi-fi coverage the West enjoys, and therefore there is far higher demand for older electronics than there is in the United States or Europe.

The same can be said for domestic consumers on a budget. Not everyone has thousands of dollars to splash out on the latest bit of hi-tech kit, which is where discounters, online retailers, flea marketers, etc. come in. If you’re interested in selling consumer electronics, these are the domestic markets you should be chasing, and you should be sourcing your wholesale electronics from such sources as liquidators, distributors and wholesalers.

In the end, it all boils down to supply and demand. You need to identify the type of market you want to get into, identify where there is demand for a particular type of product, and then buy that product wholesale at the lowest price you can so you can increase your margins and grow your business. Knowing what to sell is just as important as the price you buy it at and where you sell it. Get those things right, and there’s a higher likelihood that your business will succeed.

Where to Sell

Of course, as well as deciding on what merchandise to sell and which supplier is best to buy it from, you’ll need to know where you can sell the goods you buy wholesale. You have several different options depending on the size and the type of business you run, or want to run. They are:

Online Storefront

In this day and age, setting up an online store is a no-brainer, even if you already have a physical world retail presence. You’ll need to visit a site such as Go Daddy to register a domain name for your site, and then look into a suitable domain host who can offer you a tiered spacing structure to suit your site’s traffic and size.

You’ll also need to set up a website to show off your wares. Many online retailers like a combination of WordPress and woocommerce when setting up an online storefront. Other retailers prefer to sell through Shopify (see below), which takes the hassle out of setting up a site of your own, taking on credit card processing, domain and image hosting, and also cuts out the need to set up a WordPress site.

Third Party Marketplace

If you don’t want the hassle of setting up your own online storefront, you can choose instead to trade through a third party’s website. Of course, there are both pros and cons to doing business in this way. Principle among them are:

Pros

• Instant access to a huge customer base both domestic and international.

• Easy set-up.

• Customizable store-fronts.

• Debit and credit card payments processed for you.

• Handling and shipping taken out of your hands.

Cons

• Administration fees.

• Membership fees.

• Sales commission fees.

• A huge number of competitors.

• Customer retention problems.

• High customer cancellation rates.

If you’ve weighed up the pros and cons and still think selling through a third party is for you, here are a few sites you might want to consider:

Amazon

This is arguably the biggest of the online third-party marketplaces outside of China. Starting out as a humble online bookstore back in the Internet Dark Ages (1994), Amazon has morphed into one of the largest retailers on the planet. It’s very easy to start selling on their marketplace – the company will walk you through the process via its dedicated sellers’ service. There are two fee plans, but the one you’ll be looking to sign up for is their professional plan. Its benefits over an individual selling plan are explained below:

Bobsled Marketing

As you can see, unlike for individual sellers, Amazon doesn’t charge an upfront selling fee for its professional clients. Instead, it charges a flat monthly fee of $39.99 for unlimited access to its marketplace, plus a sales percentage fee depending on the category your merchandise falls into. The categories and the fees charged (in %) are as follows:

• Automotive Parts and Accessories (not including Tires & Wheels) – 12%

• Tires & Wheels – 10%

• Baby Products (not including Baby Apparel) – 15%

• Books – 15%

• Cameras and Photos – 8%

• Consumer Electronics – 8%

• Electronics Accessories – 15% for items under $100 (item price + gift wrap charge); 8% for over $100; minimum referral fee of $1.00

• Entertainment Collectibles – 20% for items under $100 (item price + gift wrap charge); 10% for items $100-$1000; 6% for items greater than $1000; minimum referral fee of $1.00

• Home & Garden Products (including Lawn & Garden, Pool Supplies, and Pet Supplies) – 15%

• Industrial & Scientific Products (including Food Service and Janitorial & Sanitation) – 12%

• Kindle Accessories – 25%

• Music – 15%

• Office Products – 15%

• Personal Computers – 6%

• Shoes, Handbags, and Sunglasses – 15%

• Software & Computer Games – 15%

• Sporting Goods – 15%

• Sports Collectibles – 20% for items under $100 (item price + gift wrap charge); 10% for items $100-$1000; 6% for items greater than $1000; minimum referral fee of $1.00

• Tools & Home Improvement Items – 12%

• Toys – 15%

• Unlocked Cell Phones – 8%

• Videos, DVDs, and Blu-Rays – 15%

• Video games – 15%

• Video game consoles – 8%

• Watches – 15%

• Any other products – 15%

eBay

The world’s biggest auction site is now over twenty years old, believe it or not, and in those two decades it has become a multinational, multi-million dollar company. Today eBay allows businesses to set up stores on its site, and offers a variety of packages to suit your individual requirements:

eBay

There are a number of optional additional fees such as adding a fixed price to individual lots, adding a subtitle to your lot, adding a ‘Buy It Now’ button, etc. These will all be explained to you at the time of setting up a store on eBay. On top of its monthly / yearly subscription charge, eBay charges a final sales percentage fee for every item you sell through them. These charges are as follows:

• Antiques – 9%

• Art– 9%

• Baby – 9%

• Books, Comics & Magazines – 8%

• Business, Office & Industrial – 10%

• Cameras & Photography – 8%

• Clothes, Shoes & Accessories – 10%

• Coins – 9%

• Collectables – 9%

• Computers, Tablets & Networking – 8%

• Crafts – 11%

• Dolls & Bears –  9%

• DVDs, Films & TV – 8%

• Garden & Patio – 9%

• Health & Beauty – 9%

• Holidays & Travel – 6%

• Home, Furniture & DIY – 10%

• Jewelry & Watches – 11%

• Mobile Phones & Communication – 8%

• Music – 8%

• Musical Instruments – 9%

• Pet Supplies – 11%

• Pottery, Porcelain & Glass – 9%

• Sound & Vision – 8%

• Sporting Goods – 9%

• Sports Memorabilia – 9%

• Stamps – 9%

• Toys & Games – 9%

• Vehicle Parts & Accessories – 7%

• Video Games & Consoles – 8%

• Wholesale & Job Lots – 11%

• Everything Else – 11%

More information on eBay’s standard selling fees is available to view here.

Etsy

The world’s number one arts and crafts marketplace, Etsy specializes in hand-made goods from a budding worldwide community of craftspeople. Unlike with Amazon and eBay Etsy charges no monthly fee to sell on their site, though they do charge a flat rate 3.5% commission on all items sold through their marketplace.

Etsy also offers a membership scheme to its wholesale marketplace. Again, no upfront membership fees are charged when buying or selling wholesale, and no charges are applied when buying wholesale. However, the same 3.5% commission applies to wholesale purchases. More information on Etsy’s wholesale marketplace criteria can be found here.

Amazon / eBay / Etsy Fee Comparison Chart

Amazon / eBay / Etsy Traffic Comparison Chart

Newegg

This China-based company has been voted one of the best online retailers in the world, and it’s not hard to see why. Originally specializing in consumer electronics, Newegg has grown to be one of the world’s leading online marketplaces.

You can become a member of their partner program, which offers perks such as Newegg taking handling, storage and shipping off your hands (if you so desire), the ability for partners to list as many or as few items as they like on the Newegg marketplace, and a sellers’ program package that includes access to expert marketing and to a dedicated service team that will work with you to maximize your profits and help you to make the most of your Newegg experience.

The commission charged on merchandise sold through Newegg is as follows:

Apparel & Accessories – 14%

Appliances – 12%

Arts & Crafts – 13%

Auto & Hardware – 10%

Baby – 12%

Bags & Luggage – 14%

Beauty – 12%

Books, Media & Entertainment – 13%

Camera & Photo -9%

Cell Phone Accessories – 13%

Computer Hardware – 10%

Consumer Electronics -9%

DVD & Videos – 10%

Health & Personal – 12%

Home & Living – 12%

Home Improvement – 12%

Jewelry – 12%

Motorcycles & Powersports – 10%

Musical Instruments – 10%

Office Supplies – 13%

Outdoor & Garden – 12%

Pet Supplies – 11%

Software – 15%

Sporting Goods – 12%

Toys Games & Hobbies – 12%

Unlocked Cell Phones – 8%

Video Game Consoles -8%

Warranty & Service – 13%

Watches – 12%

Other – 13%

Other Online Marketplaces To List Your Merchandise

If you’re not quite ready to go swimming with the sharks over at Amazon and eBay, there are alternative marketplaces you might like to try first. Some suggestions are:

Sears – The company offers three services on its website – Advertise on Sears, Sell on Sears and Fulfilled on Sears.  Click here for further information.

Rakuten – A Japanese marketplace with sites based in North America, Europe and Asia, Rakuten charges $99 a quarter for a membership, and then charges between eight and fifteen percent commission depending on item category. For more information, check out their website.

Jet – The new kid on the block, Jet offers a similar service and commission rate to Amazon. More details can be found here.

Bonanza – Calling itself the ‘best place to sell online, Bonanza has a growing seller and customer base and offers lower selling fees than both Amazon and Etsy. More information can be found here.

Alibaba – China’s answer to Amazon, this global marketplace behemoth might be of interest to you if you want to dip your toe into the Latin American and Asian markets. Further information can be found here.

Shopify

TechVibes

One of the fastest-growing online e-commerce sites is Shopify. Set up in 2004, initially as an online snowboarding store, Shopify has grown into one of the world’s leading hosts of online stores and developer of retail point-of-sale software systems.

It’s easy to set up a Shopify store. All you need to do is register with the site, set up a store, customize it and start selling. Shopify lets you organize your products just the way you want them, lets you accept debit and credit card payments, and lets you track and respond to orders as and when they come in.

The Shopify app can be added to your existing website (for example via a WordPress plugin), and it can also be integrated into social media platforms such as Instagram, Facebook and Twitter.

Local

The obvious advantage of selling locally through sites such as craigslist is you don’t have to factor in the cost of expensive long-distance shipping, meaning your profit margins won’t take such a hit. You can sell through a variety of sources, such as by placing ads in the classified section of local newspapers and magazines, advertising in stores, advertising on local forums and through online classified sites such as the aforementioned craigslist.

Flea Markets

VeroVine

Flea markets are a great way to sell large volumes of cheaper merchandise such as unbranded wholesale products bought in bulk from liquidators, and there are thousands of them located up and down the land. Hiring a stall varies in cost depending on location, but as a general rule, outside stalls are the cheapest, indoor or partially-covered stalls are middle-priced and fully indoor and kiosk stands will set you back the most.

To book a stall, check out your local flea market’s website or find them on sites such as Yell.com. Once you set up, you’ll need to make sure you’re selling good quality products, but nothing too over-the-top as more expensive merchandise is less likely to sell. Oh, and don’t forget to brush up on your haggling skills. It’s a tough crowd out there, and you’ll need to have your wits about you as your customers will be looking to drive a hard bargain!

Retail Storefront

WikiWand

For many people, the lure of owning your own main street store outweighs the easy fix of a solely online presence. Of course, setting up shop in the real world isn’t plain sailing. There are things you’ll need to do, such as scouting out the ideal location, what you can afford in weekly / monthly rent, what you’ll need to turn over in profit every month to cover your rent plus expenses such as local taxes, utilities, staff wages etc. and what you’ll need to make on top of that to increase your margins.

And then, of course, there’s what to sell. This very much comes down to two factors – area and demographics. If you’re in an area where there are a lot of lower income earners, there’s no point setting up a store selling luxury goods, as your customers won’t be able to afford what you offer. You’ll need to find out exactly what it is your customers require, and adjust your wholesale buying accordingly.

Export Markets

Export To Japan

When it comes to exporting, a whole different set of factors come into play. For example, do you work with a freight forwarding company who will deal with everything from commercial invoices, bills of lading, shipper’s export declarations and the various rules and regulations associated with exporting goods to foreign lands, or do you go it alone and arrange your own shipping? The costs may be less, but you might find yourself overwhelmed by the technicalities and calculations involved. Research is, of course, the key.

And then there are all the other costs and arrangements you need to take into account. These include:

• The varying prices of freight / shipping containers.
• The cost of multimodal transportation from your warehouse or distribution center to the merchandise’s final destination.
• What to sell to foreign markets. For example, a liquidation marketplace offers large quantities of surplus, overstocked, liquidated and reconditioned electronics merchandise that isn’t available to buy in other markets. Research where there is a shortage of goods abroad, and buy merchandise appropriately.
• What are the overall costs, from transportation and packing costs, insurance costs, shipping and handling costs, customs and legal costs and, of course, the costs of purchasing wholesale. All this must be factored in and deducted from your projected profit margin.

For further information about customs restrictions, legal issues and everything to do with exporting wholesale products around the world see our Ultimate Guide to Freight Shipping for Resellers.

Online vs. Offline

Foundation Recruitment

For many businesses, having both an online and an offline presence is a no-brainer. However, for your business, things might not be so black and white. For example, if you have big plans that involve setting up your own warehouse, you may well live in an area where demand is high enough locally that you don’t need to take online sales and their various costs into consideration.

For other businesses, however, online might well be the way to go. Yes, there are costs associated with online sales, primarily of the shipping and handling kind both when buying wholesale and when shipping merchandise forward to your customers, but this might be offset by the demand for the goods you sell, their price, etc. Everything about online sales must be factored into your wholesale purchasing price, as indeed does everything involved with selling offline.

For offline sales, there might well be advantages if, as mentioned above, there’s strong local demand. With good word of mouth, an emphasis on customer service, the help of friends and family, using local publications and classified ads to get the word out and even good old-fashioned notices pinned to phone poles, you may find you need do nothing more than setting up shop locally and make a good profit offline. However, that isn’t to say you shouldn’t also explore online sales – if there’s a potential to make money, there’s little point ruling one avenue out. In this day and age, it’s important to keep all your options open.

Dropshipping vs. Buying Wholesale

MultiVendorShoppingCarts

Dropshipping differs from buying wholesale because the seller does not buy or house their own stock, instead opting to offer merchandise through their stores, and when it’s ordered by the customer, buying from a third party wholesaler who handles the shipping. There are pros and cons to using this business. They are:

Pros

• Low overheads – You’re not buying large quantities of stock, therefore you’re not having to warehouse that stock at your expense. Neither are you paying to handle and ship the goods to your customers.
• Upscale your operation quickly – Shipping and handling is a time-consuming business. By using a dropshipper, you cut out the time you would spend shipping your own merchandise.
• Testing opportunities – You can introduce new stock without the danger that it might not sell, leaving you with a warehouse full of stock you can’t sell. If a new product proves unpopular, you can remove it from sale at no cost to yourself.

Cons

• Tough competition – Because there’s little expenditure needed to set up a retail business that uses dropshipping, there is no barrier to people setting up this type of business. As a result, you’ll have to compete with thousands of others doing the same thing you’re doing.
• No quality control – Because you’re going through a third party, there is little control over the quality of the goods you sell. If your dropshipper delivers poor-quality products, your customers aren’t likely to return. There is also the problem that you can’t protect your company’s brand if you don’t control the packaging and shipping. For larger operations, branding is key, so using a third-party keen to push its own brand over your own might be more of a problem than it is for a smaller business.
• Lower profit margins – This is the biggie. Because you’re buying wholesale from a dropshipper, your profit margins will be much lower than if you cut out the middleman. As your business grows, the loss of profits that could be plowed into buying more stock is often cited as one of the main reasons many businesses eventually ditch the dropshipping model and go directly to buying wholesale.
• Finally, one of the biggest cons is that your supplier will be competing directly with you on sites like Amazon and eBay. As the ones who aren’t dropshipping, they will have a clear advantage over your business because their costs will be considerably lower than yours.

So, is using a dropshipper better than buying wholesale? Well, it depends. If you’re just starting out, you might want to consider it, but there are risks and pitfalls attached. In the end, it is always better to control every aspect of your business including the housing, handling and shipping of your merchandise. However, there are advantages to dropshipping, and it should not be dismissed out of hand – especially not by those on a very tight budget.

The Path to Success

Dealer Marketing

In the end, it all boils down to margins. Most sellers start small and, through a process of trial and error, expand and expand their wholesale business as they discover what sells, what markets are best for them, and what they need to do to turn a healthy profit.

Margins are key to success in this business, for pretty obvious reasons. Identify a market, buy wholesale at a good price, get a good deal on handling and shipping, sell at a premium and turn a decent profit and there’s more money in the pot the next time it comes to making another wholesale purchase. That, in a nutshell, is what margins are all about. Without a healthy margin, there’s less money for overheads such as bills, shipping, etc. and, most importantly, less money for product. Without product to sell, there’s no money to be made, and that way lies disaster.

So, if you’re just starting out, is there an identifiable ‘path to success’? After all, it’s not 2004 anymore where a seller could buy any old junk, stick it on eBay and make a fast buck. Those days are long gone. Today, buying wholesale is a volume game, with margins getting thinner every day.

If you’re to succeed as a reseller of wholesale products, you need to start asking important questions such as should you buy a single pallet of goods right off the bat, should you consider dropshipping, is sourcing locally a better idea and will it save me money, and should you just go ahead and order a truckload of goods right off the bat and dive in with both feet? All these questions and many more need to be considered as you find your feet.

Hopefully, this guide has answered some of those questions, and we hope it helps as you jump into the exciting world of buying and selling wholesale products. Good luck!

Further Information

Make liquidation work for you
http://www.worldwidebrands.com/liquidation

Stock clearance explained
https://en.wikipedia.org/wiki/Stock_clearance

What are shelf-pulls?
http://www.toptenwholesale.com/answers

Buying Wholesale
https://www.thebalance.com/g00/how-to-buy-wholesale-merchandise-2890056

Building an eCommerce store
https://www.multivendorshoppingcarts.com/drop-shipping-vs-marketplaces/

Finding a profitable product to sell
https://startupbros.com/step-by-step-guide-on-how-to-find-a-profitable-product-to-sell/

Build your business on Amazon
https://services.amazon.com/?ld=NSGoogle

Amazon selling plan
https://services.amazon.com/selling/pricing.htm/ref=asus_soa_snav_p

Best way to sell on Amazon
http://www.cpcstrategy.com/blog/2014/06/sell-on-amazon/

Can you make money selling on Amazon
https://www.junglescout.com/blog/selling-wholesale-on-amazon/

What is Newegg?
https://en.wikipedia.org/wiki/Newegg

Becoming a Newegg associate
https://flash.newegg.com/affiliates

eBay Seller Center fees
http://sellercentre.ebay.co.uk/business/fees

eBay industrial sellers’ fees
http://pages.ebay.com/help/sell/industrialfees.html

eBay subscriptions and fees
http://pages.ebay.com/seller-center/stores/subscriptions.html

Become a Newegg partner
https://flash.newegg.com/affiliates

What does Shopify do?
https://www.shopify.co.uk/faq/what-does-shopify-do

What is a Shopify ecommerce account?
https://www.shopify.co.uk/faq/what-is-a-merchant-account

How Shopify takes care of shipping and handling
https://www.shopify.co.uk/faq/can-i-get-someone-to-take-care-of-shipping

USA flea markets
http://usafleamarkets.com/vendor-list/

Flea market finder
http://www.fleamarketfinder.org/

Dropshipping vs. wholesale buying
https://www.multivendorshoppingcarts.com/drop-shipping-vs-marketplaces/

Start a dropshipping business
https://www.bigcommerce.com/blog/dropshipping/

Selling wholesale tips
http://sellingtogiftshops.com/2017/06/28/can-increase-profit-margin/

Share on social networks

Henley Johnson

Henley 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 Henley is here to help you grow your business.

View Henley’s Bio on YouTube.