online retailers guide to finding a wholesale supplier

1. Online Retailers Guide to Finding a Wholesale Supplier

Going by the traditional supply chain, wholesale suppliers may seem to be a solution to all the problems of a small retailer. He has large inventory piles and that too at discounted prices ready to be sent to various parts of the country or may be abroad depending on the order. Some wholesale suppliers even go to the extent of providing credit to retailers. 3. While the picture may seem to be rosy, on the face of it, the reality is pretty different from the imagined situation. A wholesale supplier is only ready to sell when he gets a bulk order. The problem further deteriorates when it comes to online retailers, as his ordered quantities are really very less. Requesting and building relationship may help sometimes but it is not a sustainable way to conduct business.

Offshore: One of the possible solutions is going offshore where suppliers and wholesalers are producing and supplying similar products that one may need. These offshore deals may get you the required number of a particular article needed, and they may even get you the same articles at a discount. 5. Another possibility for an offshore deal is that one may get huge trade discounts if not the exact quantity, and then he may just stock the bulk purchase. This way his cost of storing inventory will remain low and his profitability will increase. 6. Dropshipping: Most of the people aspiring to make money on eBay are familiar with the dropshipping method of online retailing. This particular method can help minimize the working capital for an online retailer and will definitely come in handy in a cash crunch. A drop shipper will ship the product directly to the person who has ordered a particular item, on behalf of the online retailer. The product would not have to be first purchased and then sold by the retailer saving any extra time involved in the transit process.

Multiple Suppliers: Another way of ensuring easy procurement of goods at an affordable price and a desired quantity is via multiple suppliers. The online retailer has to find more than one suppliers. Then, his dependence on the suppliers will reduce and give him more bargaining power with the suppliers. 7. The multiple suppliers model is beneficial for the customers as well, as an online retailer may get discounts and competitive prices from the multiple suppliers and then pass on the same discount to his customers. This would give him an edge over other retailers who would supply similar products at higher prices. 8. Liquidators: Though it may not seem to be an option, one may even find the required goods with a liquidator. They sell a varied amount of goods at discounted prices and in small quantities which is the exact requirement of an online retailer. This discounted trade is performed with the sole motive of collecting money to repay the debts of a person who has filed for liquidation or bankruptcy. This is an option worth exploring.

Collective Buying: Lastly, theres always the traditional way of collective buying which gives you the power of volumes and numbers. All one has to do is find other small retailers who are also looking forward to make an extra buck and reach the minimum quantity that a wholesale distributors are willing to sell. If the order size is more than that, it means that the group of collective buyers can have economies of scale due to further volumes and make more profit than before. 9. The only problem here could be the lack of co-ordination amongst such small retailers although this may be overcome by careful planning and efficient communication.

online retailers guide to finding a wholesale supplier

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