Did you know that the Asia Pacific has the biggest wholesale market around?
They account for the $9.5 trillion-share of the global market. North America and Western Europe follow as the second and third place.
Following in their footsteps is an admiral business goal.
It’s not that hard to sell wholesale products to retailers. The entire process becomes easy after you’re done setting up your wholesale business and establishing yourself.
But how do you get started? If you aren’t sure where to begin, read on discover the steps in our nifty, easy-to-grasp guide.
1. Start with the Pricing
When it comes to math, you might find it tedious and boring. Yet this is one of the most important parts of the entire process of wholesale selling. After all, this will determine whether your retailers will buy your products and give you profit.
Start with the basics: the standard selling price of wholesale is around twice and a half of your total cost of production. It’s usually around 50% of what the end-customer pays for. It’s safe to assume that the retailer will sell the products at double the markup value.
You might want to offer a suggested retail price as a guide. Make sure that you offer a tag that makes good sense to both your retailer and their customer base. When calculating the price, ensure that you include the shipping and other overhead costs to the formula.
If you want to finish your selling goals, make sure to put a minimum order rule. What this means is that your buyers need to purchase a minimum number of products when ordering. You can give incentives to first-time buyers by removing this limit.
2. Check Your Targets
Wholesale products sometimes won’t have a large customer base. If you want to make the most out of your sales, do your homework. Research your target audience and the places where they’re likely to buy your products.
Check which stores sell the more competitive products and see if they’re within a region you can make easy sales. If you want a better idea where to look, have a hands-on experience. Visit stores and walk around.
Check each and see how these retail businesses are faring against each other. Pick the most dominant one in the market. While considering this, make sure that you check how your products fit on their line-up.
3. Understand the Buying Habits of Retailers
Retailers often have their own buying strategies.
It can differ depending on their existing rules and the industry they’re located. As an example, small businesses will make you have direct dealings with its owner.
Bigger store chains will make you work with a dedicated buyer instead. That means that they buy from you on a seasonal basis or place orders when it’s time for trade shows within their industry. They might even place orders for batches before high season set to ship on various dates.
If you work with these large-scale companies, make sure to accommodate their schedules. Buyer expectations increase when you’re experiencing B2B orders. You need to get out of the manual ordering processes and invest in the latest technology.
Look at what they sell too. Some retailers focus on selling local products. Others still focus on selling merchandise.
This helps you make the process easier for both you and your retailers.
4. Know How Taxes Work
When you’re doing wholesale, you aren’t supposed to charge the sales tax on the order. The reason is the fact that the retailer taxes the customers buying your product. It’s important to get the important tax documentation from your retail buyers.
Depending on your location, your tax laws can vary. No matter where you are, you should keep a good copy of your retailer’s licenses. Don’t do business with those who don’t have them.
5. Stand Out from Competition
In a world where reviews dominate, you need to get a lot of positive reviews. Make sure to show off your buyers’ testimonials to potential retailers. If you’re starting from scratch, it’s always good to give some free samples to the relevant establishments.
Ask for their feedback. Remember that a great review from trustworthy businesses can set you apart from your competition. There are about 750,000 establishments in the wholesale business–you need to get featured fast.
The positive press will make it easier for you to promote your brand. It’s your trump card when dealing with stores that have stricter guidelines for buying. Becoming a reputable business is your main goal to stay in the market longer.
6. Stay Up to Speed with Current Industry Trends
As you progress, you can close a big sale here and there. It’s still important to keep your eyes set on what the future brings. Check online and see the current ongoing trends and capitalize on them.
There are a lot of things you can do to scope out upcoming trends. You can try attending trade shows or joining industry conferences to stay current. Doing this will give you advantages and keep your business more creative.
If you’re feeling lucky, you might want to host focus groups. It helps you get ideas on how to improve your products. That way, you can figure out your direction and get to work with your next products.
Don’t get left behind–don’t stop learning. Complacency will hurt your business and your bank account.
Learn to Sell Wholesale Products Today!
It’s quite difficult to start your own business. You don’t rush to it headlong if you want for it to last long. If you’re unsure how to begin, take these steps into consideration and learn from them.
Always remember that not everything goes well. It’s normal, so it’s better to prepare yourself for rejection. That way, you’ll have contingencies that can help you stay afloat.
It’s important to think about every step you take. Researching your potential retailers and your target end-customers is always great. The more knowledge you gather, the better informed your decisions will get.
Do you need help in getting items to help you sell wholesale products? You can contact us today. We have the right expertise and products that can help you start your retail business.