How to Sell Wholesale
Wholesale businesses can be lucrative ventures for independent business people. Many entrepreneurs work from home, especially if they have another company ship their products for them so they can focus solely on selling. There are different ways you can market your business, such as selling at trade shows or flea markets or by placing newspaper and magazine ads. It is best to choose a promotional method with which you are comfortable.
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Things You'll Need
- Product supplier
- Product samples
- Catalogs
- Business cards
- Brochures
- Website
- Order forms
Instructions
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Select the types of products you want to sell. Pick products with which you are familiar or which you enjoy. Market wares related to a hobby as your product knowledge can help you sell your products.
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Find a supplier for your products. Start by searching for wholesalers and manufacturers. Look through trade journals related to wholesaling and retailing. Contact the National Association of Wholesale-Distributors at NAW.org for wholesalers. Go to Wholesalecentral.com to see if a company sells the products you want to market. Go to eBay.com as it has large wholesalers looking for distributors. Go to Macraesbluebook.com to search for manufacturers.
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Call several of the wholesale and manufacturing companies. Ask them for lists of wholesale and suggested retail prices for their products. Try to find products that offer at least a 40 percent markup, which is the difference between the retail and wholesale price. Ask the wholesalers and manufacturers if they offer drop-shipping services, where they mail products to your customers for you. Subscribe to Mydssd.com if you are having trouble finding a drop-shipper, advises "Entrepreneur." Select a supplier that best meets your wholesale markup and shipping needs.
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Find customers. Contact retailers and small wholesalers in your local area as your prices will likely be too high for larger wholesalers. Show them your product samples and catalog. Offer them deals, if necessary, to make the sale. Give your business card and a brochure, with your website address, to potential customers.
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Place small classified ads in your local newspaper. Advertise in retail trade journals such as "Retailing Today" or "Store Age," if you want to attract business outside your immediate area. Advertise on Stores.com which both wholesalers and retailers read. Submit your website to major search engines such as Yahoo, Google and Lycos for more exposure.
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Process orders. Fill out wholesale order forms for each customer, as your drop-shipper will need to know where to send the merchandise. Pay your distributor the wholesale price of the products and keep the rest as profit. Follow up with your customers to make sure they receive their orders on time.
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Pay taxes on your profits. Take advantage of the home office deduction if you can. Check with the Internal Revenue Service to determine if you are eligible for it.
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Tips & Warnings
Make sure you contact your customers regularly to see if they need to reorder products. Make it easy for them to order, including accepting orders by fax or email. Make sure they have ample copies of price sheets and order forms. Collect your money in advance. Later, you may be able to bill customers for their convenience.
Always check with the Better Business Bureau before doing business with any wholesaler or manufacturer. Make sure you are dealing with a reputable supplier. Ask your wholesale or manufacturer supplier for lists of their clients. That way you can call some of their customers to determine their satisfaction levels.
References
Resources
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