How To Navigate Wholesale Merchandise Markets As A New Retailer?
Starting a retail business in 2021 can be a tricky process. Since the pandemic, many bricks and mortar retail stores have closed down. With that said, online retail has been reaching unprecedented levels of success.
So, if you are just starting your journey of retail business, why not begin online. It’ll be much easier to take the online route until the crisis blows over. But where will you be sourcing your products from? Acquiring wholesale merchandise is your best bet. Here’s why!
Why Buy Wholesale Merchandise?
There are many benefits to buying wholesale but the main reason is the price.
When you’ll buy wholesale, you will be shopping from a middleman between you and the manufacturer. Wholesale purchases are made in bulk; therefore, you’ll be able to buy merchandise at discounted prices.
Buying items at cheap prices from wholesalers means you’ll be able to increase and sell them at your retail store. This higher price is appropriately called “retail price”.
For example, if you buy shirts in bulk with each one costing around 2$. You can retail each one for 10$ or more netting you 80% profit on each shirt sold.
Now, let’s see how you will use this approach to navigate Wholesale Marketplace as a new retailer.
Devise a Shopping Strategy
Whether you are consulting manufacturers or visiting stores to gauge competition, it’s essential to have a well laid-out shopping plan.
Having in-depth knowledge about the type of products you’ll be dealing with beforehand can save you from making bad decisions. Market research helps you better determine which products you’ll be retailing in your store.
When you visit a wholesale marketplace, you’ll be exposed to hundreds of products that might match your preference. Having a solid plan and sticking to it will prevent you from getting overwhelmed by a large variety of product types.
Explore Your Options Thoroughly
Looking out for more than one seller is the best approach while pursuing the wholesale market. Each wholesaler has its own set of pros and cons, it’s up to you to prioritize what works for you.
Some wholesalers might be offering very cheap prices but their merchandise will look shady. While some might be offering slightly higher rates than others but they’ll be well-reputed. Jotting down potential options and then later comparing their pros & cons can help you pick the best option.
Ask for Discounts and Perks
While discussing your business requirements from the wholesaler, finish-up the conversation with the topic of potential discounts.
Sometimes, a wholesaler might provide additional discounts to make you their returning customer. This can also be done after ordering a few times from him.
If you have established a trust relationship with the wholesaler, he’ll offer perks to you. They can include cheaper shipping, order prioritization, and cheaper prices, etc.
Prioritize Quality over Quantity
Many people have tried saving a buck or two by buying cheap merchandise for their business, but it doesn’t work out most of the time.
Although, there isn’t anything wrong with buying cheap wholesale product, but in the early days you’ll lack experience to identify cheap from low-quality. Always going for the cheaper options without any checks may result in you stocking up on unreliable products that will ruin your business’s reputation.
Read Also: How To Start ECommerce Business
View Return Policy Beforehand
What happens when you order 2-3 shipments of clothing and one of them is damaged? Or anything can happen during the logistics phase of the order so you have to be ready for the worst-case scenario.
Before you finalize the purchase, clarify the return policy of the vendor. Set the terms of order cost, whole processing time and returned shipment time. This information is required to be assured that the product will get replaced with minimal cost and losses will be recouped (if any).
If the initially offered terms aren’t good enough, negotiate further. Suppliers will usually improve the return policy or lower the cost.
Final Words
To open and run a successful retail store, many factors contribute to your success. Narrowing down your target audience, knowing what you’ll be selling and how you’ll be sourcing it is crucial. This is where Wholesale Business help.
Pre-planning the navigation tactics helps you gauge the market better and make the right decisions. You can also explore the wholesale merchandise marketplaces on online wholesale platforms. The final decision is up to you regarding which suppliers suit the nature of your business.
