Sourcing Wholesale Products to Sell for Profit

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Sourcing products to sell is one part of the profit equation – you need to also know what, where and how to sell.

There are a bewildering array of products to sell, but, often sellers can find themselves at a loss as to how to focus – to be successful you need to develop flair, passion and commitment to your market – you must have a burning desire to succeed – and, ideally, find a niche so as to stand out from the crowd.

It can be daunting when you realise that by developing your niche you are in fact narrowing the market you are going to sell into, but, by doing this you are giving yourself the chance of grabbing a big segment of a smaller market instead of a small segment of a larger market – with reduced competition and better margins.

Develop your website, your eStore, even your eBay or amazon listing to reflect the features and benefits of your products that your target audience needs or wants. Think outside the box when it comes to pitching your offering – let your audience know that you understand them and position yourself as an expert in their field of interest. Let them know that you have done all the legwork in sourcing the products the fit their needs, you have researched the market, looked at the options, identified the best fit products. You have taken away, from them, all that time and effort, and, you know what your talking about!

Think of any giveaways that you could produce as way of attracting more business – for example information on your products and the services you offer will set you aside as an expert – as long as it has some value and not just a marketing tool.

Understand your niche understand your audience and speak directly to them in their own language!

To begin on the path to success you need to identify where you want to go…

… brainstorm – what are your hobbies – what are you good at – do you have any special skills or knowledge – is there a burning ambition that you haven’t fulfilled – what are your plans for the future. From this you can start to identify what’s the best fit for your future business.. The way to success can be through exploiting a niche in the market – based on your brain storming activity, what ideas have you developed and can they be applied to a niche – if so become an expert in that niche! To become an expert initially, you only need to be one page ahead of your audience!

By understanding exactly who your customers are, and what they want, means you can become very specific in your marketing so that it is not you focused it’s customer focused – it’s about their needs, their wants – their problems, and, their desires – tell them how your products fulfil those needs.

And don’t forget to come across as an expert- you only have to be one page ahead of your audience.

Think of any giveaways that you could produce as way of attracting more business – for example information on your products and the services you offer will set you aside as an expert – as long as it has some value and not just a marketing tool.

Understand your niche understand your audience and speak directly to them in their own language!

Build your knowledge of your proposed market. An in-depth knowledge of the area you will be selling in, an understanding of your target customer and the products they want or need will drive prospects you. The key is to give customers a one stop destination for their wants and needs. This means offering them a selection of products they won’t find at their local store or the typical on-line supplier.. Luckily, sourcing products for your business is not a matter of luck or guessing as you can take very specific steps to find what your buyers want and, through this, develop successful ongoing, profitable relationships with them.. You need to go beyond the top-level of popular products and dig deeper – to unearth the products that meet the want and needs that buyers have – the unique, all-embracing, solution in your particular niche.

One reason selling on-line is the place to be, is because, as it has been shown in survey after survey, people shop on the internet because of the range of choices. This means that anyone only selling the headline products in a particular category will not be meeting buyer demands! Profit margins will be lower on headline products because of the competition that’s out there so it’s worth you digging down and identifying the niche products that buyers want but the are not ones everybody else is selling – in this way you will out sell the competition. Identifying products to sell is not going to be straight forward, ideas for your ‘ideal’ offers will not arrive simply ‘off the top of your head.’

You need to start thinking like your buyers – know their wants and needs – immerse yourself in your market, read the ‘trade’ magazines, watch related TV, go to events that your target audience attends, log on to their forums and read the posts – learn, interact – share your knowledge, become identified as an expert. By doing this you will find yourself ‘tuned’ to buyers, your market and what your product offering needs to be. Spotting trends is the key to knowing what people will be buying – look for social and lifestyle moves within the general market. Once you’ve identified your area of specialisation you, obviously, need a source of supply. There are loads of resources available – free – that will help you home in on potential suppliers:

In the first instance check out various suppliers’ websites. Check their policies on payment terms, delivery costs, returns and where are they based, is it easy to contact them, do they have a bricks and mortar address. Contact them direct – if possible visit them – ask questions about their policies, and terms. Get references. Go online, log on to the forums – they’re great for getting leads and hearing war stories and asking questions.,

You can use general search engines like Google and Yahoo. There are trade sites where you can find world-wide suppliers – examples are available on my site.

Finding reliable wholesale suppliers and sourcing wholesale products can be challenging, and there are plenty of variables that you need to be aware of. Initially you will need to decide on the type of wholesaler you will to use. They fall into a number of ‘types’.

Manufacturers:

Usually buying direct from the manufacturer means a high minimum order. Typically they prefer to sell through distributors who buy in quantity at good discounts, who then sell on in smaller quantities. You can find this information either on the manufacturers websites or by contacting them direct.

Distributors:

These will normally carry products from a number of manufacturers and so will offer a range of choices. Their prices will obviously be higher than buying direct, but minimum quantities are usually lower.

Liquidation:

Buying bankrupt stock, end of lines, and customer returns is a great way to get good prices. You can buy in bulk at great discounts on the original selling price, the down side is that you will not get a consistent supply of products, and, this will impact on your business if you have specific regular needs – if your business is based on buying low and selling higher with no unique product focus, then this could be for you.

Importers:

To source speciality products from another country, you’ll likely have to go through an importer to get them.

Drop Shippers:

Drop shipping is a simple way to deliver products to your customers – without needing to worry about storage, inventory control or shipping costs. Drop shippers basically buy from manufacturers or distributors and ship orders direct to your customers as you place orders. There are down sides – you are dependent on them for all the logistics. This means you have little control on the quality of service delivery. They also have direct contact with your customer base, which means the unscrupulous could take your business. Because of their business model, it’s highly likely you and many others are buying the same products to sell into the same markets which means competition will be high and this can only squeeze margins – but this would apply in any general market, and so, one more reason to have a niche market.

The key to dealing with suppliers is to build a relationship with them. Your account manager is your partner in this. You need to make sure he becomes knowledgeable about you business. He should be pro-active in keeping you abreast of developments, new products and ‘deals’ available that fit your niche.

In the early stage of your business it’s tempting to run before you can walk when starting out. For example, by placing large orders before you’ve tested your market. Make sure you at least have some supporting evidence that you products will sell – not just in ones and twos, but in sufficient volume to meet your targets both in sales and profitability. Ask yourself – what’s the break even point, how many do I have to sell to cover my costs, what mark up or margin can my market sustain, and, can I buy at the right price to meet those margin goals? And so it goes on – what’s your suppliers minimum order, can you get samples, can you get the right product mix? Some words of caution – scams, fakes and just plain bad businesses exist – be vigilant, do your research.

My blog on sourcing wholesale products has a list of wholesalers which is regularly updated – why not give it a visit



Source by Bob Menzies

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