Learning how to resell wholesale products is a lucrative venture.
This business involves purchasing wholesale products at discounted prices from a wholesale supplier and then reselling them at a higher price for a profit.
Side gig workers typically struggle to understand how partnering with a retail business and other reselling organizations can transform into profitable monthly side income streams.
Whether you’re an experienced entrepreneur looking to expand your business or a newcomer, this guide will provide invaluable insights into the competitive world of reselling wholesale products.
- How Do You Buy and Resell Wholesale Products?
- A Comparison: Selling in Bulk vs. Other Business Models
- Selecting the Optimal Wholesale Products for Resale
- 5 Best Cheap Wholesale Products to Buy
- Tips to Find Wholesale Suppliers
- 5 Best Online Stores for Sourcing Wholesale Products for Resale
- Frequently Asked Questions
- Wrapping Up
How Do You Buy and Resell Wholesale Products?
Buying wholesale entails purchasing quality products in bulk at wholesale pricing directly from wholesale suppliers.
A wholesale supplier will require a minimum order quantity, which is the least amount of items the reseller has to meet to purchase the products.
Resellers can increase their profit margin by selling wholesale products compared to reselling products from retail sellers as the single unit is cheaper.
You usually get a discounted wholesale price for the products when you buy wholesale, which means you can then generate more profit on the resale.
The product category and niche of the product affect the prospective profits your resell business can generate.
A Comparison: Selling in Bulk vs. Other Business Models
This section delves into wholesale, exploring its nuances and factors to consider when choosing resale business models:
Wholesale vs. Dropshipping
The wholesale reseller business model requires initial capital to buy cheap wholesale products for resale. Drop shippers, on the other hand, can list goods on websites without purchasing the products beforehand.
The former model entails handling functions like stock management, order fulfillment, and shipping costs, whereas drop shippers delegate these functions to external parties.
Expect to create multiple contracts with third-party companies to ensure there’s clarity on delivery schedules and financial aspects.
Wholesale vs. Online Arbitrage
The difference between wholesale and online arbitrage is how you source products. Wholesale reselling demands bulk buying and bargaining rates directly with suppliers or manufacturers.
In retail arbitrage, if a digital store sells products at 50% off, arbitrage sellers can source products at a low retail price and later sell products at a higher pricing value.
Wholesale vs. Private Label Products
Private label sellers develop unique products from scratch to sell across multiple distribution channels with unique product listings.
Conversely, wholesalers buy and resell a particular product, eliminating the need to create their own product listings.
You can also buy unbranded products from manufacturers and white label these items with your own branding. Attractive branding and clear messaging can usually build a reputable product impression in front of customers.
Selecting the Optimal Wholesale Products for Resale
When seeking wholesale products to sell, small business owners require careful product and market research.
Analyze market trends, identify in-demand products, and assess potential profits based on projected sales among your target audience.
Target Products With High-Profit Margins
When sourcing wholesale products, seek low-cost options to boost your profit margin. Buying in higher quantities can also lead to cost savings and increased profitability through economies of scale.
Set a Medium Price Point
Sourcing cheap wholesale products isn’t a guaranteed route to increase profit margins if the price point is too low.
Aiming for a price range between $15 and $200 is a good rule of thumb. Check the suggested retail price to strike the right balance and ensure a competitive price.
Identify Low Competition Products With High Demand
In a saturated market, wholesale products with low competition can increase your chances of success.
Evaluate marketplace platforms and identify the number of existing retail sellers selling the same product. You can easily make money through an Amazon seller account by leveraging its product research features.
Identify Lightweight and Durable Product Categories
Profitable wholesale products are often small and lightweight due to shipping considerations. If sourcing from distant locations, shipping costs can become significant in the case of large products.
These products are cheaper and easier to ship, adhering to a common rule: “fitting into a shoebox and weighing less than 2kg (4.4 lbs)”.
While there is potential for higher profits by selling large items like furniture, logistical challenges are more likely.
5 Best Cheap Wholesale Products to Buy
Here are the five best wholesale products to sell when launching your personalized reselling business:
The jewelry market allows resellers to connect with high-ticket customers who splurge cash on diamonds, rubies, and other precious stones.
With a market valuation of $270 billion in 2022, miners and jewelry distributors are justifiably predicting a massive sales volume for the next five years.
This market has two segments, one for luxury products and the other being daily-wear jewelry.
You can buy high-end accessories such as designer watches, necklaces, earrings, and bracelets, or settle for cheaper alternatives with low wholesale prices to sell online.
2. Smartphone Gear
Newly released data by Future Market Insights shows the smartphone gear market stands at $97,996 million in 2023 and should see a jump of 6.8% between 2023 and 2033.
You can capitalize on the smartphone accessories demand by buying multiple phone gear categories like earphones, headsets, metallic covers, Gorilla glass screen guards, and portable chargers.
Consider creating a stronger retail business model by pairing products based on phone models and color combinations.
Expect large target markets ranging from teenagers, office-goers, and senior citizens.
3. Home Décor
Homeowners appreciate handmade products to improve their indoor environment. You can trade in scented candles, carpets, or home textiles to capitalize on this trend.
Scented candles, for example, add elegance and combat foul odors. When they’re made with natural essential oils, they appeal to customers who care about health and wellness.
Look for handmade candle vendors selling affordable wholesale products online. You should also consider visiting flea markets and buying handmade candles with a touch of uniqueness.
You can also enrich your collection with handmade bedspreads, pillow covers, and embroidered cushions.
4. Pet Essentials
There seems to be no shortage of animal lovers who become pet parents.
Since the pandemic struck, many people have relied on their furry companions for entertainment and company. This caused a rising demand for pet supplies, be it for catnip and litter boxes or trackable collars and dog treats.
Most pet parents are more than happy to pay good prices for pet products that guarantee healthy dietary plans and high hygiene standards.
Market leaders showcase a broad catalog, and resellers can comfortably negotiate a discounted wholesale price from pet care product suppliers.
You can resell anything from anti-dandruff pet shampoos, cat litter, treats, water bowls, and breed-specific pet food formulas.
5. Fitness Devices
As of April 2022, consumers are spending more on health and fitness, considering it an investment rather than a luxury. This consumer mindset influences resellers to spend significantly on wholesale merchandise, including home exercise equipment.
As an online retailer, you can share in these profits by selling fitness products like exercise mats, dumbbells, and more at competitive retail prices.
Resellers should account for the cost of shipping products, ensuring to factor in varying expenses for large, bulky fitness equipment.
Tips to Find Wholesale Suppliers
There are a few different methods you can use to find wholesale suppliers:
1. Start With Your Local Chamber of Commerce
Begin your search for suppliers by checking with your local Chamber of Commerce.
Attend industry events, trade shows, and subscribe to trade publications to stay informed about the latest information that can guide you in selecting the best suppliers for wholesale goods.
2. Contact Other Business Owners
If you have relationships with other business owners, leverage them to crowdsource cheap wholesale items; filter which wholesalers to work with and which ones to avoid.
Social media, industry groups, and forums are also great places to find wholesale distributors.
3. Scrape Online Marketplaces
Alibaba, eBay, Etsy, and other online marketplaces are great options for wholesale sourcing.
They each have thousands of manufacturers, retailers, and wholesalers from which you can buy cheap wholesale items.
These platforms also have top-notch messaging features that make it easy to get in touch with suppliers.
You can start reselling with DHgate thanks to the platform’s wholesale price accessibility for a low minimum order quantity (MOQ).
Their well-connected delivery networks enable access to endless categories of international goods. There’s also payment protection until buyers express their satisfaction with product quality.
DHgate stands out from competitors by allowing product customization requests from buyers. Most sellers should tailor your wholesale products to your required specifications at your request.
Since its inception in the late 1990s, Alibaba‘s track record in premium wholesale trading etiquette has only skyrocketed.
They offer Trade Assurance programs to protect buyers from scams or issues in stated product quality. This makes Alibaba a top-notch recommendation for shipping international products with better unique selling points (USPs).
Users can invest in an impressive array of everyday, luxury, and semi-luxury items, including gardening, cooking, and beauty products.
All customers are privileged to request sample orders and test the performance of their preferred wholesale products. The top-shelf review system demystifies the reputation of suppliers.
Wholesale Central markets upcoming trade shows and events concerning the wholesale industry. Such promotions open up collaboration and networking possibilities with suppliers you’re interested in hiring.
Buyers can leverage the bookmarking feature to revisit supplier profiles and conduct comparisons between two or more wholesale sellers.
Stay more connected with suppliers through updates on seasonal offerings, product catalog developments, and order-specific discounts.
The platform also lets buyers choose from private labeling or unbranded product delivery options, catering to multiple reseller business styles.
Via marketplace data charts and expert advice, users are presented with featured products demonstrating trending items.
Just like eBay stands out with auctions and C2C sales, Wholesale Central takes pride in its free-to-use model, killing the need for membership fees to buy quality products.
Costco offers resellers valuable bulk-buying gateways with in-demand products at wholesale prices.
As a membership-based wholesale business, exclusive members are gifted with a string of cost-saving benefits.
For example, you can receive instant reimbursements for delivery standards that don’t meet quality assurance guidelines.
The wholesale giant proudly offers customers products from their proprietary brand, Kirkland Signature, with consistently high product quality.
eWorldTrade offers resellers low-cost wholesale goods, enabling high-profit opportunities in the reselling market.
With an extensive range of wholesale products, this online marketplace connects resellers with internationally verified suppliers, ensuring excellent product quality for resale.
From electronics and home improvement to fashion and more, resellers can buy wholesale goods across countless categories.
Frequently Asked Questions
Can You Buy Wholesale Without a Business?
If you want to buy wholesale without a business license, it’s possible for personal use in the US.
However, you’ll need a license and other documentation if you plan to purchase wholesale items in bulk and sell individual units.
Is Selling Wholesale on Amazon Profitable?
Profits from selling wholesale goods on Amazon vary based on product selection and marketing efforts.
On average, expect to earn $1 to $5 profit per sale. The potential for profitability lies in choosing and effectively promoting the right products.
Reselling wholesale products offers a promising path to business growth. By leveraging bulk purchasing at discounted rates, resellers can boost profits and tap into a wide range of product niches.
It’s no longer difficult to find suppliers in today’s online world. This makes wholesale products a popular choice for an entrepreneur or a budding newcomer looking to start earning some side income.
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