Do you want to start a small trading business part time at home? If YES, here is a complete guide on how to make money buying goods wholesale and selling retail.
In a world where experts stress on the need to have multiple streams of income, it is very important that no one stays without an alternative source of income. One of the trades that you may want to consider in this line is the buying and selling trade. Buying wholesale products and selling them at retail prices can be the footing of a solid business.
There is no complication in this type of business. In fact it is a concept where a product is purchased at a low price and resold at a higher price. However, you will have to determine the particular kind of products to deal in and where to sell them off.
Therefore a buy-and-sell business is nothing more than purchasing cheaply new or previously owned products that people may need or want and reselling these same stuff for more than the original cost. The disparity between what you paid and what you sold it for automatically becomes your profit. As such it can be said that this business is a buy low, sell high kind of trade.
If you think this sounds like the kind of business that you would like to do, then you may want to consider the following steps on how to begin to buy wholesale and resell.
How to Make Money Buying Goods Wholesale and Selling Retail
- Resolve What to Sell
Selecting the right products to deal in is one of the most vital parts of this business. The correct product can define business success. It is very important that you decide the niche you want to deal in. Doing this would help a great deal in knowing what the buyers are really looking for. Do not put your money in a business when you have not taken time to determine what you want.
2. Pool Your Cash Together
After you have done your due diligence to determine what to deal in, you now have to get your cash ready. Although with time you may be able to get some suppliers who will be willing to let you have the goods now and pay later, but for starters you will need to be armed with your money as you step into the business. There are various ways you can raise startup resources; you may consider getting a loan, saving up or asking family and friends to come to your rescue.
3. Purchase Fast Moving Products
There are products and there are products. There are products that will move faster than others. This is exactly what you must look out for. One of the ways to determine this is to undertake some research. Doing this will enable you be conversant with goods that will leave your shelves as soon as it hits it.
4. Discover the Right Wholesale Source
No matter the product, the key to fruitful retailing is in choosing the best source for procuring the product at a low cost with minimal headaches. This step takes plenty of groundwork and research. With thousands of distributors and warehouse operations competing for business, you will do well if you took this part of the business seriously
5. Look for Cheaper Suppliers
Remember that the reason you are in business is to make money, therefore you have to be sure that you are buying from a source that will make you maximize profit. There are different suppliers that can either make you under maximize profit or over maximize profit. In this case you may want to consider buying directly from the manufacturers.
6. Rent a Shop
You should also be sure to determine where you want to be located. If you are looking to open a brick and mortar location where the goods will be displayed, make sure you are located in a place where you will be conspicuous. One of the best ways to attract plenty of buyers is to be strategically located.
7. Market Your Goods
What happens when you purchase your goods and do nothing about pushing them to the market for people to see them? Simply put, no sales would be made. This is what may likely happen if you do not put adequate measures in place for the right marketing. There are several ways you may want to market your goods. One of the ways would be through the internet. Another is through roadshows. Yet another is by telling people about it and so on.
8. Market Your Goods Online
With the way the world has so advanced in technology, it is clear that people make plenty of sales from their online contacts. You too may also look into this medium of making money. One of the ways you can do this is by being active on the various social media platforms. You may consider posting your products picture on Facebook, Instagram and a whole lot more.
9. Sell Your Goods Online
In recent time more than ever before, the most standard way that new retailers procure products for resale is through online wholesalers. One of the leading wholesalers is Alibaba.com. It provides large quantity or ‘bulk’ purchasing from vendors around the world.
In addition, thousands of manufacturers are listed with directories that give retailers a range of choices in vendors. You can consider either starting an eCommerce site or attaching yourself with an already successful eCommerce brand.
There you have it, some of the best steps that you can take to be sure that you will make money when you buy goods on a wholesale basis and sell at a retail basis.