You have the opportunity to buy almost all kinds of goods at wholesale prices, whether for everyday purchases or resale. Once you start your search, you can see that the opportunity to buy items at wholesale prices is almost everywhere. The process to start shopping is fairly easy, and your wholesaler's contact list will quickly get longer.
Step
Step 1. Prepare the necessary permits and tax documents
In most states, you will need to have a TIN/licence because the wholesale products you buy are not taxed. Before you start looking for wholesale products at low prices, try to prepare the following permits so you don't have to worry about legal matters and can focus on making money:
- Get a national employer number (Federal Employer ID) from the IRS. Forms for obtaining this number are available online at the irs.gov website. You can get this number as the primary owner of the business.
- Get your national company number and state TIN according to your area. Get a national company number first, as you may need one to get a TIN in the state. After that, search the internet for your state Department of Revenue website; the site will be able to guide you to get a TIN.
- Register the SIUP of your state after obtaining the required identification number.
Step 2. Decide how many items you want to buy
In wholesale sales, the volume of goods is very important, because the larger the number of items you buy, the lower the price per unit. Wholesale business is often also called a volume-centered business.
Balance supply of goods and fiscal needs with inventory limits. In other words, getting a bargain price for 2000 laptops is great, but where are you going to store them while you wait for your order?
Step 3. Find and search for information about wholesalers
Wholesalers are easy to find if you can search for them. Here are some places to look for wholesalers that can be used:
- Do a thorough internet search. First, search for the type of product you want to find, then enter your zip code to get local search results. Comb through local search results, and pay attention to advertisements, online associations, and wholesale directories.
- Look for wholesale fairs. This method is a bit more expensive and may not be as efficient as an internet search, but wholesale fairs are still a great source of wholesale goods at great prices (as well as networking, which is necessary but often abused).
- Ask the manufacturer. If the manufacturer can't sell the item directly (because the manufacturer usually only sells very high volume items), you may want to ask a wholesaler or other distributor for referrals.
Step 4. Network to find great prices
Talk to people who have had success with grocery shopping and make arrangements to develop contacts. They will usually share information with you, unless they view you as a rival.
Step 5. Look for information on how to join a professional group that offers wholesale prices
These groups are usually listed on industry publications or websites, or may be related to the company you work for, and may offer discounts to their members.
You may think that paying for access is a disservice, but the membership fees are well worth what you get
Step 6. Purchase a wholesaler's list at your own risk
This list is a list of "trusted" sellers and distributors that you can use, and should buy. This list looks good, but in reality it often contains old and not updated entries. Try to find your first seller and distributor without this list..
Step 7. Start with a sample unit
Instead of buying 1,000 units of a particular item, try selling 20 units of the item first so you can imagine the conditions of selling goods in the real world. If the item doesn't sell, you can survive a big loss, and if it sells, you can easily add to the stock, and feel confident in your ability to avoid losses.
Step 8. Feel free to ask for special treatment
Special treatment is common throughout the world, including in the wholesale world. Ask for an early discount on any order you may make with the supplier; Intense market competition will cause providers of goods to compete for you as a customer. Giving an early discount on your first order shows appreciation and clever business moves.
Subscribe to the newsletter by email. The newsletter may mention discounted items or warehouse cleaning. However, make sure you ask why the item was discounted or no longer on sale. If an item is no longer on sale because it is not selling well, buying too much is not a good idea
Step 9. Pay attention to the shipping method
You have to find a way to get your ordered goods to the warehouse, unless you also have a freight forwarding business. When looking for a freight forwarder, use a trusted service; You will find that the extra cost for such a trusted service is worth the service.
Step 10. Lastly, be careful before ordering
Ask for clarification on returns rules, confirm order processing times, and use discounts. Also, don't worry about negotiating pricing, especially if you find a cheaper price elsewhere. Know when you can receive the goods. If you're ordering more than $500, consider hiring a lawyer who will review the contract before you sign and finalize the contract.
Tips
- Use different bank accounts and credit cards for wholesale business if you are reselling items as a seller.
- Know the retail price of the item you are going to buy before making a purchase so you don't pay too much and think the price of the item you are getting is the wholesale price. Look up prices online if necessary, searching for the item name so you can find some price comparisons.
Warning
- Online auction services that offer you the opportunity to buy expensive items at very low prices earn money from your bids. On these sites, bidders have to pay a certain fee each time they bid.
- Be careful with online auctions from overseas. The items they sell may be of low quality, and you need to make sure you know the shipping costs before committing to such high costs.
