Does the wholesale business model seem too good to be true? Buying wholesale products for resale may seem overly simplistic when you think about the basic process of buying lots of wholesale goods and then reselling them at higher prices, but there are some good reasons that this approach to business really works for today’s marketplace.
More than 95% of Americans now shop online, and there are billions of people making online purchases worldwide. It’s easier than ever to buy products shipped from other countries, and virtual purchases are expected to become even more common in the future. This is the biggest reason that wholesale online selling works: You have a massive market looking for products.
Consumers shop online for many of the same reasons that you want to sell online. They can do it from the comfort of their own homes at any time of the day or night. They can compare prices and products between stores without driving to each one. It’s easier to discover new products online, and most people get excited when their packages arrive on their doorstep.
What about people looking for products that aren’t easily found in their local areas? Online shopping solves the problem. What about people live in remote areas and can’t easily get to brick-and-mortar stores? Again, online shopping.
You can sell wholesale products from your home or other locations, which eliminates the overhead that retailers with a brick-and-mortar storefront must pay. While some selling platforms charge fees, that is nothing compared to renting store space, paying the electric and other bills, and maintaining that property over time.
You can start with a small investment in wholesale stock, and then buy more wholesale lots as your first investment sells. Instead of begging friends to invest in your new MLM scheme or trying to convince an angel investor to fund your new business, you can fund yourself a little at a time. What if you only have $100 to start? You can find wholesale products within that budget, and some sell for even less.
Wholesale lots are sometimes filled with brand new items, but oftentimes they’re made up of items that have been returned to stores or overstock that a store is unable to sell in a timely manner. These items are often in brand new or like-new condition, but you can also buy used or refurbished products. Some items may have been opened, but they still have all of their components and are in new condition.
While you can’t misrepresent these products to your buyers when buying wholesale products, new and like-new products often resell at prices comparable or equal to products purchased at full retail price. Consumers want high-quality and brand name products, but they don’t always want to pay retail price. If you can offer a new or like-new brand name item, you will often win out over other retailers.
As long as retailers need to get rid of their overstock and returns and people like you are able to resell online, the wholesale resell business model will continue to work. Everyone wins from the retailer to your customer.
Brick-and-mortar stores limit you to selling in one location, but there are many online selling platforms available today. Even more will likely be introduced in years to come, giving you even more flexibility for expanding your business.
You have the option of starting your own e-commerce store, or you can sell through well-known platforms like eBay and Amazon. Those sites are competitive in the most lucrative product categories, so you may also want to consider smaller platforms that aren’t yet overrun with sellers. The downside is that many smaller platforms also aren’t as overrun with paying customers.
If you end up with products that aren’t selling well online, you might consider renting space at your local flea market in the summer. Some people sell through Craigslist and similar sites that allow buyers to connect with local sellers. You assume greater risk with those sites, but it’s just another option for selling wholesale products.
You can mold your online business to fit your lifestyle. If you’re buying wholesale products for selling part-time and working full-time, then you can list products, answer customer questions, and complete other necessary tasks on your days off or in the evenings. If you want to make this your full-time job, then you can make that worth as well. The more you focus on your business, the more likely you are to succeed.
Are you getting excited about starting your discount retail business with wholesale products? Continue exploring our site to learn about the products available through wholesale sellers. We can also help you develop winning strategies to get your chosen products in the hands of loyal buyers.