Product procurement is an essential process of a retail business. There are many distribution channels where you find products to sell, the most common ones include manufacturers, distributors, wholesalers, and trading companies. Check out or post that talks exclusively about manufacturers and how to find the right supplier for your retail business. Today, however, we will focus exclusively on buying wholesale, giving you some general information as well as tricks and techniques to make your research process easier.
What are the differences between wholesalers and manufacturers?
Before starting to look for wholesalers, let’s take a look at the difference between wholesalers and manufacturers and why you would prefer working with wholesalers in certain situations.
For large retail businesses looking for a complete customized product range, we recommend working with manufacturers directly to develop the products from scratch. A product manufacturer produces finished goods from raw materials, and then sells the goods to either consumers, wholesalers, distributors, retailers, or to other manufacturers to produce other goods. A products manufacturer generally works with sourcing agents, distributors or trading companies to help them find customers to sell goods to. It is generally easier to connect to suppliers through sourcing 3rd parties but working directly with factories helps lower the overall cost and increases profit margin for the retailer.
On the other hand, wholesalers are suitable for retailers who are simply looking for pre-made goods with standardized designs. Wholesalers buy in bulk directly from distributors and resell the products to retailers and or sell to consumers directly. They are usually not involved with the manufacturing of the product, and instead focus on distributing the product. Therefore, wholesalers work more closely with retailers to match their needs.
While the profit of margins is slightly lower when you work with a wholesaler versus a manufacturer, it is often easier to get in touch and collaborate with a wholesaler than a manufacturer. We will talk more on later sections on ways to find and work with wholesalers to buy in bulk to sell. TradeBeyond for example, is a collaborative sourcing app that not only lets you connect to wholesalers around the world but work with them directly on the platform as well.
Benefits of Buying Wholesale
Lower Costs and Increase Profit
When retailers buy from wholesale, they almost always have to buy in bulk in order to receive a discounted price. Retailers then take these wholesale items to sell at their own stores at a higher price to make a profit. With an enormous amount of competition in the retail world, buying in bulk and selling individually allows retailers to keep costs low and still make money from the large volume of sales.
More Organized Inventory Management
Buy in bulk to resale means buying in large quantities, and that means you need to restock less often. It may save you time and make inventory easier to manage.
Greater Variety and Coverage
The Wholesale system contains a large variety of products for you to select. It is possible to get access to items before they are launched into the market. A larger selection also allows you to compare and choose products that align with your needs. Bulk Wholesale system also has national and international logistics coverage, so you don’t have to worry about not being able to obtain the product you need.
How to Find a Wholesaler?
Where do you start to look for wholesale items to sell for your retail business?
- Reputable Online Supplier Directory
One place to start looking for cheap wholesale products for resale is through online supplier directories. Directories such as Wholesale Central, DOBA, ChinaBrands, Salehoo and many more offer a list of wholesale companies for you to choose from. But most of these exclusive supplier directories charge a one off or subscription fee if you want to access the directory.
- Check on B2B Marketplaces
You can also check on international marketplaces such as Alibaba, eBay, and Etsy to find wholesale items for sale in bulk. You can find marketplace that are more regional and local, and there are Also industry specific B2B marketplace. While there are a huge number of suppliers, wholesalers, and manufacturers to choose from, it is often not super easy to sort and filter out these vendors based on product quality and reputation. You may have to do additional research to confirm the legitimacy of the vendor. There are lots of scammers on these marketplaces since there are no automatic verification systems on these platforms to verify the suppliers.
- Search Engines
If you want to conduct a broader search, you can always use search engines such as Google to find suppliers to buy wholesale, but a lot of suppliers don’t have their own websites or social media, which makes it almost impossible to find them in general unless you go to certain directories or contact them directly. In order for search engines to be effective, you need to make sure you are typing in the right keywords related to products you wish to sell.
- Network within the Industry
Investing in relationships with other business organizations, local chambers of commerce, and other trade associations will help you gain knowledge and tips in finding the wholesalers you need for your business. Trade Shows used to be an excellent way to gain exposure and network with other businesses and vendors before Covid. While there is less face to face opportunities to connect with others these days, you can still participate in online forums and trade shows to build new relationships.
This is a less straightforward and more time-consuming way to find your wholesaler, but it will allow you to find more trustworthy wholesalers to build sustainable relationships with. You should work on nurturing these long-term relationships while simultaneously looking for wholesalers through other faster pace methods.
What if there is a platform that lets you find verified wholesalers and products, negotiate and adapt the products all in one app?
Introducing TradeBeyond: A sourcing app with verified supplier directory retailers can use to discover new wholesalers and find new products. it’s a network used by retailers and suppliers to streamline range planning, sourcing, quotations, and buying all in one simple app.
- Supplier Directory
TradeBeyond has a community of suppliers covering these different products, including apparel, hardware, home decor, home furnishing, stationary, toys, pet suppliers and more. Simply navigate to the supplier directory in the TradeBeyond app and start connecting with new wholesalers.
To find out more information about the supplier and whether their business suits your need, you can go into the supplier profile to view their company information, product categories, capability and other relevant information. You can also see their verification documents directly inside their profile, making it easier for you to know whether a supplier has finished their verification process or not. With an automated verification system, you don’t have to worry about the potential of scams in TradeBeyond.
Besides the directory, you can also choose to get started by browsing products in the Marketplace then connect with the wholesalers that provide the products you need. Our marketplace features over 30 categories of products with an easy filtering system so you can pinpoint what you need in a short amount of time.
- Project Workspace
There are often a lot of steps as well as back and forth when you look for wholesalers online. From doing research, contact, negotiate, to collaborate, you may jump between online forums, email, messaging apps, to phone calls etc. With TradeBeyond, however, you can streamline all the entire process within the app.
After connecting with a wholesaler, you can contact them for information or request a quote/proposal using built in messaging tools. Everything is stored within a central cloud database hosted in TradeBeyond so that you don’t have to look into emails, spreadsheets and local drives for any product related information.
Try TradeBeyond today for free and learn about all the amazing features you can unlock when you subscribe to our premium plan! Find the wholesalers you need for your range planning now!
Factors to Consider when You Buy in Bulk for Resale?
The Right Directory
Type of Suppliers
When you choose a supplier directory platform, make sure the directory has wholesalers who do bulk wholesale. Certain directory specializes in one or two types of suppliers, such as manufacturers or trading agents. Confirm before you sign up on the platform to prevent wasting time on looking for the wrong partners.
Similarly, there are many directories on the internet and some of them specialize in certain product categories such as pet, apparel, children toy respectively. Make sure the directory has suppliers for your target product categories.
The Right Wholesaler
Not all wholesalers can accommodate the scale of your retail business. Check with the wholesaler to confirm their scale of operations before ordering from them.
Make a list of all the wholesalers you are interested in and compare prices between all of them to ensure you have the best deal. The main reason for buying wholesale is to buy in bulk with discounted prices. Therefore, finding the one with the best pricing options is a good start for you. Don’t be afraid to negotiate with the wholesaler to get to your target price point.
Reputation of the Wholesaler
When you buy in bulk for resale, it is important to consider the reputation and track record of the wholesaler you are going to work with. You can check their track record by either asking them to provide a previous client list, product catalogs, google search, and or look through trade associations for any information related to this particular wholesaler.
Retailers sometimes buy wholesale items for sale in bulk to increase profit margins and save time. It is less time consuming and more cost effective since retailers don’t have to create the product from scratch. To find cheap wholesale products for resale, you can find wholesalers through paid directories, B2B marketplace, search engine, and or trade organizations.
TradeBeyond is a one for all sourcing app that helps you find verified wholesalers to supply you with quality products. You can browse, negotiate, and adapt products all inside the app, which saves you a lot of time wasted in back and forth communications, and more time to spend on bringing great products to the customers.
If you are interested in learning about how TradeBeyond can meet your business needs, register an account here or contact us to get a demo of the app!