Something you need to know about wholesale.

Wholesale

Buying wholesale is a fairly simple and straight forward process. You're buying your product inventory (usually other brands) direct from the manufacturers or from a middleman supplier at a discounted wholesale rate, which you in-turn, resell at a higher price.

Buying wholesale is a lower risk business model compared to manufacturing for a few reasons. First, you're dealing with brands that are already validated on the market so you don’t run the risk of wasting time and money developing a product no one wants. Also, you don’t have to purchase as nearly as high of a quantity compared to manufacturing your own product. Minimum orders will depend on the manufacturer and product, however they're usually pretty reasonable and can even be as low as one unit.
 

Who's It For?

Purchasing products wholesale is a good option if you want to get up and running quickly or if you want to sell a variety of products and brands. Wholesaling provides a wide range of opportunities as there are many products available for wholesale.
 

Pros:

• Selling Already Established Products - Because you’re selling already established products helps to lessen the risk associated with purchasing inventory.           
• Brand Familiarity - Selling already established brands can help position your brand by creating an aura effect on your brand.

Cons:

• Selling Already Established Products - Selling already established products can work for you as well as against you. Because the products are available from multiple retailers, you will need to fight extra hard to differentiate yourself and convince consumers to purchase from you.                                      
• Price Control - Selling other brands means to some extent you have to play by their rules. Some brands will enforce price controls to prevent you from discounting their products. This limits you ability to have certain sales and offers.                                                                         
• Inventory Management - When purchasing wholesale you will likely have to purchase a minimum order of each product. The minimum order will depend on the product and manufacturer, however you will have to stock and hold inventory as well as manage that inventory for re-order.                                            
• Dealing With Supply Partners - If you're carrying an array of products, dealing with multiple supply partners can become difficult to manage. Requirements may vary from supplier to supplier.