Buying wholesale and selling retail is one of the most tried and tested business models in the world. Buy goods for cheap and sell them at a higher price, sounds easy enough right? However, navigating the saturated retail marketplace can be incredibly difficult, and requires a ton of homework. Here are 4 essential steps you need to take in order to set yourself up for success:
1. Decide what to sell and who to sell to
While this seems like the most obvious statement in the world, it’s absolutely crucial that you go into business with a clear idea of where you will try to enter the market. For example, you can’t just plan to open a store of health and beauty supplies. This is too broad of a spectrum and will lead you on a wild goose chase when it comes time to fill your shelves. If you don’t spend the time researching your market and the various products, brands, suppliers and consumers you will not be successful.
2. Decide how you’re going to sell your product
Are you going to have a brick and mortar store? Online catalog? Is this going to be your own domain or will you use a seller’s platform? Will you bring your products to flea markets or other locations? How much shelf-space/storage will you have? You need to have all these questions answered so in order to know how many products you can purchase.
3. Research wholesalers
In order to find the best price points for the highest profits, you need to compare retailers. Use your network and the internet to explore as many options as you can.
4. Make your first purchase
Once you’ve compared retailers, and found one that suits you, it’s time to try it out. Make a purchase and see how quickly you’re able to turn it around. If everything is going according to plan, you’ll be able to make your next purchase. If not, maybe you need to try to find a new wholesalers.