For any new business owner one of the biggest sources of worry is sourcing the raw material. However, it can be much simpler than what they think it to be. If you are one such person then this piece of advice would benefit you as well. All you need to do in such circumstances is find products at a wholesale price and then sell them at a retail price. It does not matter if you start a physical retail business or an e-commerce site – you always need an inventory source that can be relied on no matter what. If you do not get one then there is always a possibility that you are going to let your customers down.
Disappointing the customers
One of the first things that you would lack without a proper source of inventory is that you do not have enough variety in the products that you are offering. There are also issues such as back orders that make it even more nightmarish for you. Most of the retail entities that you see, including yourself, are dependent on a wholesale supplier who sources the goods from a proper factory of a particular brand or several brands.
A step-by-step process
The first step of the process is to buy wholesale. In this case, you need to understand what the concept of product sourcing is, who these wholesale suppliers actually are, and why one should work with them. A lot of business owners who are starting up are always under the impression that when you are buying wholesale you are basically getting goods from people who have made it. This is really wrong. A manufacturer is only responsible for making the products. They have no interest in selling a few cases of their products to a retailer. After all, there are millions such as you.
Where do the wholesale suppliers fit in?
Wholesale suppliers operate in the service domain and maintain warehouses. They also have a sales force as well as offices that look after critical business areas such as logistics and sales. There are teams to handle merchandising as well. They also have delivery mechanisms. The wholesale industry can basically be described as the bridge that sustains the whole chain from manufacturer to the end consumer. The manufacturer makes a humongous amount of products and the retailer – you – is one who sells the products one or more units at a time to each customers.
How do the wholesalers help?
The wholesalers basically break up the huge number of goods into small manageable portions that can be distributed rather easily. It is the rule of the industry that when you are operating as a retailer you get it from the wholesaler. Now you could be asking if there are any exceptions to the rule. At times, you would see that there are makers that are selling directly to the retailers like you. As is the case with everything there is a good reason for this as well and there are some disadvantages as well.
The matters explained
Wholesalers normally want to stock units of brands that are well established and successful in their respective domains. The major reason for this is the fact that this business is in itself a low-profit one that depends significantly on fast turnaround. They would never stock products of smaller and unknown manufacturers, who then have to sell it directly to people like you. Therefore, as you can understand, you are getting a surefire successful product from the wholesaler while the manufacturer that comes to you is yet to find its footing. So, there is always an element of risk involved in such transactions.