Online Wholesaling For Beginners – The Five Basic Things to Understand About Online Wholesaling
By Adrienne Collier
“I can get it for you wholesale.” That line, usually snickered out of the side of one’s mouth, conjures up visions of shadowy warehouses, cash and carry, upturned collars, shifty eyes, cartons falling from trucks, guys who know a guy who know a guy, and that cousin of yours who can’t hold a job for more four months and exercises by staying a jump ahead of the law. But thanks to the Internet in general, and eBay in particular, online wholesaling has become downright upright.
Like any other aspect of online marketing, the key to success in profiting with online wholesaling is good market research and finding overlooked, under-served market segments known as “niches.” For instance, rather than waste time and effort trying to compete with retailers of golf clubs (offline as well as on), you’d probably do better specializing in selling left-handed golf clubs-what you’d lose in audience size you’d make up for in audience demand. And speaking of merchandise, exactly how you do about finding and distributing it? You have four basic sources:
1. Drop Shippers
Drop shipping has grown in popularity in the Internet age because it requires relatively little startup money. Drop shippers not only give you a good deal on the wholesale price, they’ll even ship the merchandise. All you need to do is set a retail price, advertise, send them the order and collect the difference. In effect, you do a drop shipper’s marketing in exchange for their doing your retailing.
Liquidators buy merchandise from companies that are going out business, are overstocked, or have other reasons for needing to quickly generate a large infusion of cash. It’s an excellent opportunity to sell popular products at a high profit margin, though you have to be quick at both taking delivery and warehousing the merchandise.
By buying merchandise directly from the manufacturer, you save the most because there’s no overhead or middleman. The more you buy, the lower the price can get. If you have the money to put up front and can store a large order, it’s the easiest route to take. But if you’d like to get a manufacturer’s bulk discount without the bulk inventory, you can buy as part of a group of similarly interested online sellers.
In exchange for a higher price, wholesalers offer flexibility. They’re more willing to sell you smaller orders, something that most manufacturers aren’t. Buying from wholesalers allows you to diversify your inventory, and because they tend to have a more comprehensive distribution network, you can also save time and money on freight and shipping.
Which brings us to the fifth of the most important things about online wholesaling.
There are, of course, lots of other things you need to know, like what to look for in a supplier, how to set the right prices, how to get the most out of using eBay, what products are the most lucrative. You can learn all that and more at SaleHoo.com. It’s a 75,000-member international rel=nofollow [http://www.profitonlineforbeginners.com/salehoo-tour]online wholesaling community that will give you expert advice, support, educational materials – and access to more than EIGHT THOUSAND pre-screened suppliers!
Find out more about SaleHoo at [http://www.profitonlineforbeginners.com/salehoo-tour]http://www.profitonlineforbeginners.com/salehoo-tour. With approvals from eBay and the Better Business Bureau, SaleHoo has everything you need to get started in online wholesaling – and the one-time enrollment fee is tax deductible!
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