Can Wholesalers Help You Find Your International Product?

Sourcing products to sell within your business can be done in multiple ways, although not every method will suit every retailer. 

You may like to utilise dropshipping, an e-commerce order fulfilment model where you sell a product without keeping any inventory on hand, and instead request a third-party supplier to ship directly to the customer. You may also prefer to partner with local businesses or manufacturers directly, or even create and manufacture your own products for greater control over quality and design. 

You may also want to consider purchasing wholesale. Wholesale can be an effective way to help generate profit and ensure a steady flow of product from producers to consumers.

But what exactly is wholesale, and how does it work? Read on to find out if wholesale is a model that could work for you.

What is a wholesale? 

Wholesale refers to the sale of goods in large quantities by a wholesaler to other businesses, such as retailers. These retailers will then resell the goods to the end consumer. 

A wholesale model works because the wholesaler buys directly from the manufacturer in larger quantities, which enables them to be purchased at a lower price point. In turn, the wholesaler then sells these goods in smaller bulk to retailers at a marked-up price, and the retailer then resells to the customer at another slightly higher price point. 

The model allows wholesalers to profit from the difference between their purchase and selling price, and retailers to profit from the difference between their purchase and selling price. 

While wholesalers all generally have the same approach, there are different types of wholesalers. This includes:

• General merchandise wholesalers who offer a wide variety of products to a range of different businesses. 
• Specialty product wholesalers who focus on one specific product, product line, or selection of products associated with a particular genre or business. 
• Regional or local wholesalers who focus on products relevant to a geographical area. 
• Online wholesalers who do not work in a warehouse environment like the others do, but manage the entire process online and sell bulk items exclusively to e-commerce businesses. 

Why purchase wholesale?

You may be asking why purchase wholesale when you could buy directly from the manufacturer, as for some businesses, this may be the better option. 

For many other retail businesses, however, purchasing in the quantities required to get a significant discount is not possible, nor is it viable to store all of the product. 

A wholesaler can help fill these gaps. As well as lower cost per unit and streamlined inventory management, other pros of wholesale include: 

• The capability to deal with large quantity orders to generate higher revenue.
• A wider product selection to expand your business offering, including the option to source products like wholesale giftware internationally at affordable prices. 
• Consistent stock levels that required fewer reorderings. 
• The ability to scale your business or expand into new markets more easily. 
• Strong relationships with wholesalers may lead to further discounts or deals. 

Wholesalers can purchase and store larger quantities of product than the average retailer. Photo by Adrian Sulyok on Unsplash.

Is wholesale right for your business? 

Broadly speaking, businesses that require high-volume, non-perishable goods, with an aim to resell to customers, are best suited for wholesale purchases. Popular categories include home goods, apparel, electronics, pet supplies, health and beauty, and office supplies.  

If you’re considering wholesale for your products, there are a few questions you should be asking;

What are you intending to sell, and how much?

Knowing what you want to sell is important before determining if wholesale is right for you. Are you after a single niche product line or a wide selection of items? Start browsing the catalogues of wholesalers to confirm whether your desired products are available before committing to the model. 

It is also important to consider how much inventory you need and where you plan to store stock. You will want to purchase enough product to benefit from the wholesale discount, but not so much that you’ll have excess stock or nowhere to store it. 

Can you validate your wholesaler?

If you’ve found a wholesaler who stocks the goods you want, your next question should be, “Can I validate their legitimacy”? 

You can do this by thoroughly researching the wholesaler through online reviews and government registrations, checking their business licence and tax IDs, visiting their physical location, if possible, to assess their setup, and ensuring they use secure payment methods. 

Can you afford the costs and fees?

While researching your potential wholesalers, do not forget to consider the costs and fees associated with wholesaling. You may want to check: 

• What are their minimum order quantities (MOQs)?
• What is the cost per unit?
• Are there other expenses, such as shipping fees or membership fees?

As we know, the more you order, the lower the cost per unit. Use this figure to compare wholesalers to find one that most aligns with your business’s needs. 

What are your fulfilment requirements?

Do you have inventory and fulfilment processes in place to get your products to customers? Or will you need to start from scratch? 

Making sure you can manage wholesale stock once you order it in an organised manner is important to ensure products reach customers promptly. 

Ready to try wholesaling? 

Wholesaling can be an effective way to drive profits across multiple businesses. 

Now that you know all the ins and outs of wholesaling, it’s time to ask yourself, are you ready to take the plunge? As long as you do your research and do your due diligence, wholesaling can be a wonderful option for your business that can open up many doors to broaden your product range, maximise sales, and increase your profit line.