What You Must Know About Working In Online Wholesaling
In similar vein to affiliate marketing, the key to making good money in online wholesaling is market research that finds overlooked and under-served customer segments known as “niches.” For instance, rather than expend time, expense and effort trying to compete with retailers of golf clubs, you’d probably be better off selling left-handed golf clubs – what you’d lose in audience size you’d gain in customer demand. More important, exactly how would you go about finding and distributing your merchandise? You have four basic sources:
1. Drop Shippers
The popularity of drop shipping has increased enormously in the online age because it requires so little startup money. Drop shippers not only cut you a good deal on the wholesale price, they even take charge shipping the merchandise to the customer. All you have to do is set the retail price, market the product online, send the drop shipper the order and get paid the difference. In other words, you do a drop shipper’s promoting in exchange for their doing your retailing.
2. Liquidators
Liquidators buy products from companies that are going out business, are overstocked, or have other reasons for needing to quickly produce a large volume of funds. It’s an profitable opportunity to sell high-demand products at a high profit margin, though you will have to be fast at both taking delivery and warehousing the merchandise.
3. Manufacturers
By buying goods directly from the manufacturer, you save the most because there’s no middleman or overhead. The more you buy, the lower the price can get. If you have the money to put up front and can stockpile a large order, it’s the simplest route to take. It’s also possible to get a manufacturer’s bulk discount minus the bulk inventory as a member of a group of similarly interested buyers.
4. Wholesalers
Though their prices can be higher, wholesalers offer more flexibility. They’re more willing to sell you smaller orders, something which most manufacturers aren’t. Buying from wholesalers allows you to diversify your stock, and because they tend to have a more comprehensive distribution network, they can also offer your savings on freight and shipping.
There are, of course, lots of other things you need to know, like how to set the right prices, what to look for in a wholesale supplier, and how to get the most out of using Ebay. Which brings us to the fifth, and definitely the most important thing that novices need to learn about online wholesaling:
5. Salehoo.com is a 75,000-member international online wholesaling community that provides expert advice, support, educational materials, and access to nearly ten thousand pre-screened suppliers. Go to http://www.profitonlineforbeginners.com/salehoo-tour to find out more. Salehoo gives you everything you need to learn online wholesaling — and they’re so legitimate, you can deduct the annual enrollment fee from your taxes!
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