Wholesale Purchasing And Reselling: What You Need To Know

Wholesale is the sale of goods to retailers or businesses. Whether it be wholesale women's clothing, accessories, men’s clothing, or even the wholesale marketing of food, the process of reselling through a retailer is one of the most important parts of the marketing loop. Several retailers depend on bulk buying as the driving forces of their businesses. This helps in increasing supply while simultaneously working on preparations for the sale of the respective products. When a retailer or company buys off bulk products from a wholesaler, it helps them save a lot of time by replenishing stocks of all goods quickly.

Buying small amounts of products will always cost more than bulk buying and isn’t a recommended method of going about resale. Several wholesale shops online offer only-wholesale shipping and can help cut down on excessive transport costs. If the same products were to be shipped individually, transport costs, along with the cost of every individual product, would be extremely expensive and would put all retailers at a very big loss. However, if you are only beginning to consider the process of buying and reselling products, there are a series of things you must keep in mind to begin your journey. 

Wholesale products are received in bulk, and directly from the manufacturer of the products themselves. This is a major reason why the items are not as costly as you would find in the market. While the retailer acts as a middle man for the products to reach the market, a wholesale setting allows the seller to provide the sale of a product at a lower price while still enjoying a profit. The research will be your best friend while you decide on the right product you want to hold a sale for.

It is a common misbelief that wholesale products will always be a fifth of the actual price rate, but it is untrue for a lot of electronics. A huge profit margin is obtainable when it comes to clothing, but not necessarily when it comes to electronics.  

After you’ve conducted your research, understood the loop of the wholesale market and how it functions, you are ready to opt for wholesale reselling. However, it isn’t as easy a procedure as it seems to be. 

Before you go forth and buy products, you must obtain a wholesale license. The main purpose of a wholesale license is to legitimize the purchase of bulk products from suppliers without being liable to added taxes. It also legitimates the reselling of these bulk products.

Different states have different names for wholesale licenses, namely ‘resale permit license,’ ‘seller’s permit’ or a resale certificate. It is possible for each license to have different functions depending on the laws of the state and the different ways of going about business. The first step in the process of obtaining a license is gaining an Employer Identification Number. 

An EIN is capable of helping you receive not only a wholesale license but also several different licenses and permits as your business grows more and more. Next comes a sales tax license. A sales tax license is to be collected from the respective department of revenue in your state. This allows you to comply with sales tax laws to collect and remit sales tax. 

After following through with the entire procedure, you can opt for a wholesale license and go about your business.  The benefits of not paying taxes help out in a much bigger way than predictable. If you were to pay taxes for every bulk product you buy, you would need to sell them at a more expensive price point to avoid liabilities. The final step to finally going forward with wholesaling is the moment you have been waiting for. 

Deciding a product to resell, and the right wholesaler to buy from. When it comes to products, the most recommended products to buy are those that can provide you with a high-profit margin. Products like books, jewelry, shoes, phone accessories, and women’s apparel in wholesale are some of the most demanded products in the market. 

All of these products, since almost always in demand, are more likely to be sold out. When it comes to the profit margin, all of these products have relatively low production costs and are almost always sold at a profit. After finalizing the product that you are willing to resell, you need to look for the right supplier. This is when your research chimes in and help your situation. 

Since you already know the list of wholesalers and their competitors, you can decide which supplier is providing you with the lowest possible cost while still assuring quality products. ladycharmonline.com is one of the suppliers that fit the description of an ideal wholesaler. With a wide range of products inclusive of women’s clothing, kid’s clothing and a wide range of accessories at extremely low prices, you can easily rely on Lady Charm as a reliable wholesaler. To top it off, the section of ‘FAQs’ answers any and every question that you might have on the topic of buying and reselling a product. 

While finding a wholesaler that provides a good range of quality products is important, it is necessary to consider that the delivery of the product should be done on time. Even though this might not be important if your business is still small and just starting up, it is essential to build such relationships from the very beginning. This will assure that there is no late delivery for any of your clientele if and when your business reaches its peak.

The final step to completing your wholesale business setup would be to take charge of the way you handle shipping your products as well as their shipping costs. Once you have prepared the ideal cost for every part of the sale, you can go forth and work towards the resale of your dreams!

About This Author

Daniel Clark Joined: April 22nd, 2019