You are thinking about getting into the wholesale business, but where should you start? The internet is a big place and there are tons of people attempting to succeed at doing the very same thing and selling the exact same merchandise.
Do Your Research
The most important thing you can do before launching your own business is to pick a product that is marketable and in demand. Just because every other distributor is doing it, does not mean you should. The market might already be saturated with that particular product, severely affecting its price and sales. Utilize online resources like Google Trends to see what people are searching for. Keep your eyes and ears open for what people are looking for and try to get ahead of the competition.
Of all the types of products available, you will not only need to know what sells, but you will also need to narrow your product line down to a specific niche. Trying to sell everything will spread you too thin. Picking a particular type of product, like designer handbags, will make you easier to locate and help you become a go to company for those interested in purchasing brand name purses at discounted prices.
Consider Running a Test
Pick a couple of products at first and see what kind of interest develops. Swap them out with another couple or products to see if your results are similar or completely different. Once you see a profitable pattern in the merchandise you are selling, choose around 15 to 20 wholesale products you would like to begin with. Check online auction sites to see what people are willing to pay for them.
Hiring Your Wholesaler
Now you have to pick a reputable and reliable wholesaler or dropshipping company. Consider using a directory website, like Salehoo, to narrow down your options. Make certain you are selecting a legitimate company by contacting the Better Business Bureau and doing an online search. There are a lot of suppliers to choose from, so competition among them can be fierce. This can benefit you because many wholesalers offer discounts or free shipping in order to earn your business. Shop around until you find the right dropshipper.