There are many opportunities to buy just about anything at wholesale prices, whether it's for the purchase of everyday items or specific products intended for resale. Once you start your search, you realize that opportunities to find bulk purchases exist in almost every industry. The process of getting started is quite easy and the list of wholesale suppliers can grow rapidly.
Steps
Step 1. Obtain the necessary tax documents and licenses
In many countries it is necessary to obtain a VAT number and / or a license since the wholesale products you will often go to purchase have not yet been taxed. Before you start looking for the best deal, get the following so that you no longer have to worry about the legalities and can seriously devote yourself to making money:
- Get a VAT number at the Revenue Agency. In fact, in Italy it is necessary to have a VAT number and to be registered in the Business Register, for example as a sole proprietorship. On-line it is possible to submit the Single Communication to be sent to the Business Register, to which the "Wholesale" form must be attached.
- Wholesale trade activity in Italy is regulated by Legislative Decree no. 59/2010. For more details, you can also consult the website of the territorially competent Chamber of Commerce.
Step 2. Decide on the quantities you would like to purchase
In the wholesale trade, volumes are of paramount importance. In fact, the greater the quantities you agree to buy in bulk, the lower the unit price will be. For this reason, wholesale is also often referred to as "volume-centric".
Balance your procurement and tax needs with the constraints imposed by the warehouse you have. In other words, it would be great to close a deal for 2,000 laptops, but where can you keep them safe while you still have pending purchase orders?
Step 3. Thoroughly research and select your wholesaler suppliers
There is a huge choice of wholesale suppliers, you just need to know where to look for them. For example, some of the popular ways to look for wholesale deals are as follows:
- Do a thorough search on the internet. First of all, use the type of product you are looking for as your search criteria, followed by the zip code to narrow down and locate your search. Sift through the closest results, paying particular attention to classifieds ads, online trade associations, wholesalers lists.
- Look for trade fairs dedicated to wholesalers. Trade shows, a little more expensive and perhaps less efficient than a simple internet search, are nevertheless a source of great business (and the most esteemed but often maligned opportunities to create business relationships).
- Contact manufacturers or commercial distributors. If they cannot supply you directly (because they usually only deal with very high volumes), you may still ask them for the references of their local wholesalers and distributors.
Step 4. To do good business try to create business relationships
To grow your contact list, talk to other people who have bought wholesale products and made deals. Unless they see you as a potential direct competitor, they may share information they receive from their colleagues with you.
Step 5. Think carefully about joining groups of professionals who offer wholesale prices
These groups should be published in the dedicated press or on websites, or they could even be affiliated with the company you work with. These organizations usually offer additional discounts for their members.
You may think that paying to access these groups is a risky business, but the affiliate commission takes on its value the moment you compare it to the potential earnings it could hold for you
Step 6. You can purchase lists of wholesalers, but at your own risk
These are directories that are exactly what they sound like - lists of "trusted" suppliers and distributors that you can use for a fee. These are lists that are valid in theory, until you realize that they are often old and out of date. Try to find your first suppliers without paying commissions.
Step 7. Start with a swatch book
Instead of trying to be a 1,000-piece peddler, first try to sell 20 units of the same product. Many wholesalers will allow you to buy samples or pieces to test always at discounted prices. This will give you the necessary leeway to try to sell this sample on your own at arm's length conditions. If the item doesn't sell, you've spared yourself a catastrophe. If it sells like hot cakes, it will be easy to stock up and you will be comfortable with your ability not to run out of money.
Step 8. Don't be afraid to ask for additional discounts
Extras make the world go round, and the wholesale world is no exception. Ask wholesalers for an initial discount on every order you could potentially place; competition-intensive markets will compete with wholesalers to grab your order, who will reserve you a good initial discount to show you their appreciation, and a smooth deal to begin with.
Subscribe to news-letters in which discounts and sales are dealt with. However, remember to always ask why the items are discounted or are at the end of the series. If they are just because they don't sell, it won't be a big deal to buy a ton of them
Step 9. Don't overlook the methods you will need to use to ship the goods
Unless you have a transport company in charge of your budding wholesaler business, you will need to find a way to ship the products to your warehouse. To do this, rely on well-known names in the transport sector; you will find that this trick of paying a little extra means a reliable service.
Step 10. Finally, do your due diligence before finalizing any order
Clearly agree on returns policy, consolidate order processing times, and take advantage of any discounts available. Also, don't be afraid to negotiate the payment terms, especially if you've found a better deal elsewhere. Find out when the delivery will be made. If you are placing an order for a value greater than € 50,000, consider consulting a lawyer to have the terms of the contract reviewed before concluding and signing it.
Advice
- Before buying an item, find out about its retail price. So you won't risk paying too much by trusting that the price was wholesale. Check on the internet, if necessary, looking for the product in order to get a lot of feedback on the prices.
- If you will be reselling the items as a retailer, use a dedicated bank account and credit card for bulk transactions only.
Warnings
- Pay particular attention to online auctions held in other countries. The marketability may be lower, and you will also need to be very familiar with taxation before committing to the associated high shipping costs.
- Online auctions that offer you the opportunity to buy very expensive products for a few pennies make money on bids. In fact, bidders pay a commission every time they place a bid.
