Doing business online is essentially to
earn the price difference between wholesaling and selling. But also, there are
lots of learning related to this process, such as the wholesaling. How to
decide the number and type of products and how to get the lowest price to earn
the largest profit?
Get to know the profit pattern of wholesale and retail
Wholesale has little profit per product but
with a large quantity, while the retail earns high margin but with fewer sales
The number of purchasing
This issue includes many parts, for
example, purchasing amount, types of goods, quantity of each kind commodity,
etc. Here is an easy way to calculate the purchasing amount, which is to add up
the operation costs of the entire store in a month (including rent, water and
electricity charge, taxes, management fees, etc), and then make it divided by
the profit margin. The result is your monthly purchasing amount.
Types of products
For the first time, the types of products
should be as much as possible to give enough choices for customers. When you
have had a certain understanding of your customers, you can focus on some
certain types. After all, the funds are limited. Only when they are focused on
several certain products, can they show their advantages in the wholesaling
number to ask a lower price for the wholesalers. Doing like this is relatively
safer and more stable.
However, doing in this way also has a
disadvantage, which is that it would be hard to just purchase a single product
from a wholesaler. Nobody would like to make such a deal with you, or even if
they would, the price would be much higher than the wholesaling price. As a
result, with a higher cost plus profit, you won't have any competitive power with
your price. In this way, many customers will give up purchasing, which would
affect your judgment of the market prospect potentially.
Thus, you should have an impressive
understanding of the customers' needs before wholesaling and have absolute
confidence in your selection. While wholesaling, show your best sincerity and
enough confidence to the wholesaler, and fight for a good wholesale price for
your purchasing number.