Wholesale Inventory Tips For Wholesalers
So, you are thinking
to start your own business? And having an eye on wholesale distribution business? Then you better start reading to avoid the common mistakes in the
First, let’s start
with wholesale distribution. This is a business where you spot the upcoming
most wanted item, negotiate to buy them at a low price, and sell them to your
customer. You need a strong background in sales and negotiation, also the
people skills to charm the customers. The key in wholesale distribution is to
have a fast turning of inventory. And as it is a very competitive market, you
need to research about your customer behavior.
If you want to start
your own wholesale distribution business, you have three options: start from
scratch, buy into business opportunity, or buy an existing business. Each with
their own pros and cons. If budget is not your problem then it is better to
just buy an existing business. You will have the knowledge and inherit their
client’s database. Otherwise you may try to start from scratch, which will
involve more hard work. But you can truly build your reputation and reach
customer’s loyalty tend to be easier. The last option may mean quick success if
it is proven, but also the riskiest from available options.
Next you need to plan
ahead. Wholesale distributor, on average, will need 3 to 4 years to be
profitable, depending on your overhead cost and resources. Choose the products
that you want to sell, make sure you have a good market research about said
Now, to generate
income then you need to sell your products fast, which means you need resellers
or distributors. Use websites that specialized in wholesale business so you can
distribute your products quickly. Find and use several channels to sell your
products. Remember to buy low and sell on a profit.
When you finally had
your business up and running, then you need a wholesale inventory management. Here
are some of wholesale inventory tips for you:
shipment of products by making your own inventory tracking system. You can use
a spreadsheet with several columns included. Or you can buy the inventory
order greater amount of stock than you can sell. Overstocking or overselling
can be a serious problem to your business. Plan your inventory well.
schedule for inventory counting. This is the best way to keep your numbers
accurate, however you need a dedicated time for each counting session.
returned products. The common thing in wholesale business is you may have one
or two defective products, and your retailers may return them to you. You need
a separate inventory for the returned items and make sure it is not adding up
to your overall quantity of said products.
wholesale business out there is Alibaba Group. Founded in 1999, Alibaba
provides sales via their website, also owns AliExpress which allows people to
buy small quantity products at wholesale prices.
Another example is
Office 1 Superstores as a wholesale and retail chain in office products and
supplies. Started with brick and mortar store, Office 1 now redesign their
retail outlets to be more economical and backed by e-commerce.
To sum it up,
wholesale business is the most fundamental business where you buy and sell
products to your customers. The challenge is to manage your orders and
shipment, also you need a good inventory management. How you plan your business
will define whether you’ll make it or break it.