Have you ever wondered how you can make money reselling inexpensive products? Products such as sunglasses, hats, t-shirts, electronics, or anything in-between? The key is finding a reputable wholesaler who can provide you with quality merchandise and low prices. If you can do this, then you can make money reselling inexpensive products.
Simply finding a wholesaler is only part of the puzzle. The following 4 tips will help to fill in some of the rest:
1. Understand Your Market & the Products They Want
With the amount of merchandise that is available to purchase wholesale, narrowing down the list might seem rather daunting. Understanding your target market and identifying their wants and needs will be the fist step in determining what to resell.
Consider the following key points:
- • Who will your buyers be?
- • What kind of products will they be seeking?
- • How much are they willing to spend?
These are only a few questions that you need to answer before you make your first wholesale purchase. Although a good deal may be initially tempting, if you can not turn the product around quickly enough you may end up wasting money in the long run.
2. For a Quick Turnaround Resell Well Known Brands
A successful reseller will not only understand their target market, they’ll know what products will sell, and sell well. Additionally, researching which brands of these products sell best will ensure success.
What type of merchandise you are reselling affects whether or not inexpensive brands will resell well for you. Often times, even with a low resale price, consumers are drawn to buying brands they already know and trust.
This doesn’t mean that you can’t stock varying levels of the same product. You will need to have a solid grasp of your target market and their buying habits. There IS a strong market for look-alike products also know as replicas.
Sunglasses, accessories and fashions that are similar to very expensive brands sell well to the many who can not afford to buy the name brands.
3. Buy in Bulk
When buying wholesale, it goes without saying that you are already buying in bulk. Instead of purchasing one unit you are typically purchasing by the dozen. This in itself is how the cost can be so low, which in turn means more profits for you as a reseller. However, if you really want to lower the cost per unit you need to look at the deals that are offered when you purchase in bulk.
Some wholesalers will offer pallet discounts for a product or bulk discounts for total purchases over a certain amount.
The more you buy, the less it costs and the more profit you can make.
However, as previously mentioned, just because you can find a good deal it doesn’t always equate to larger profits. If you haven’t guessed yet, the theme is to have a really good understanding of your market before you make large purchases.
4. Factor in Shipping Costs
As a final tip, when buying wholesale – whether in bulk or not – you need to pay close attention to shipping costs. Purchasing in bulk to obtain volume discounts won’t mean much if you’re stuck with outrageous shipping fees. If you do adequate research and locate a good supplier, you’ll discover that the larger the order, the lower the shipping fees.
Following these 4 simple steps, anyone can make money reselling inexpensive products. For an in-depth look into what you will need before buying wholesale, check out our Buying Wholesale Basics Guide.