In this article, you will ge to know everything you need to know about buying wholesale. Wholesale means when a manufacturer or producer of a good, sells it to another party in large quantities and with a lower price if that party were purchasing it in units. Usually, wholesaling is done for business purposes, meaning, a business sells to another business with the premise that the latter will sell it to individual clients. Businesses that buy wholesale are normally those that are inmersed in professional business, retailers, and even industry workers. Nevertheless, companies that sell wholesale are more than glad to accept selling under those same conditions to other people as long as they fulfill with the goal of selling those goods for commercial purposes. For this reason, owning a shop, store, or office is not needed for this. Sole traders can benefit from the economic advantage that buying wholesale brings. Know, let’s go to the many reasons why buying wholesale poses an advantage over other types of trade.
Why Should You Buy Wholesale?
Lower price
As you may have guessed already and according to personal experience, you know that buying in large quantities or buying wholesale clothing on sales gives you the power of negotation of a lower price which can’t be had when buying a single or even varios products in lower quantities. You can take advantage of this competitive price point by charging a profit margin over it and then earning a profit when selling them to other people.
Variety
Another good thing about buying wholesale or clothing on sale is that there is a great selection of products. Not only do they come with a cheaper price but there are also many different products you can choose from. This will in turn help you have a wider arrange of goods to offer to your clients and get more chances of increased sales. However, it is important not to get carried away and buy more things that you can expect to sale since you can end up with a large inventory that could take a long time to be sold, thus, having your capital can be end up sleeping for several months. Sales projections are a good starting point and you can look at historic data taking into account seasonal changes also accordingly.
Brand recognition
A good brand means trust. We all want to buy from someone we trust it. With wholesale, you can get access to renowned brands at a relatively cheap price. With these types of brands in your inventory, you will be able to attract more clients.
Lower shipping costs
If you were to buy things in small quantities, you would have to pay for shipping separetely. When buying in bulk eg. wholesale clothing on sale, your shipping costs are lowered, and thus you can either keep the price of the items to earn more or lower them to increase your sales. On top of that, if you are the one who is transporting the goods, you will not only be saving money but also time when buying wholesale.
More Opportunities
Large corporations are normally stuck with one or various companies that sell wholesale. This is because they may have contracts or have a long-term relationship that wasn’t easy to come up with with the conditions they needed. It is not that easy for them just to go around and find another company that sells wholesale under the same or better conditions. Fortunately, for sole traders this is not the case. They can more freedom in this regard, and have more opportunities to shop around to find other wholesalers.
What does the Expression “for trade only” Means When Buying from Wholesalers?
As a rule of thumb, the majority, if not all wholesalers will sell only under the “for trade only” condition. The good thing is that you don’t need to own a company to fulfill this requirement. The reason why wholesalers put that “for trade only” clause is for tax benefits, make them stand out from other stores, and to have benefits from the manufacturers of the products they sell. There may be cases where wholesalers may be willing to buy only to large companies and in that case will have large minimum purchase requirements, however, this rarely happens. Interestingly enough, there are many cases in which their is no minimum limit you need to spend with them in order to get the advantage of buying clothes in bulk or buying wholesale, other times, it may be as low as £50 to £100, and others only have a minimum order for the first purchase.
Proof of Trading Needed to Buy Wholesale
The majority of wholesalers will sell you their products without requiring you to show any proof of trading. However, some of them will ask you for a proof that you won’t be using them for your personal use. If this is required, you can easily get it by either giving them a business card or a letterhead with your trading name in it. Other proofs of trading include a bank statement from your own business account or an invoice from other wholesaler. This can mark the beginning of your trading relationship. It is recommended that you set up a business account before you start buying wholesale as this always helps.
Minimum Requirements when Buying Wholesale
Different wholesalers have different requires for buyers. If there is a case where a wholesaler gives you unreasonable trading conditions such as a very large minimum order, you should check out for others. They key here is to find the one that suits you the most in terms mostly of price offered for their products and requirements asked for. Some wholesalers go even as far as not requiring you to buy the whole batch which is a combination of goods they put to toghether for sale. This way, you can exactly pick which type of product to buy instead of having to take all of them as offered initially buy them. Don’t be afraid to approach wholesalers. They aren’t that much different from retailers. Although there may be more steps involved than when buying from the latter, you can still get very good deals buy putting in just a little bit more effort. It will pay of in terms of returns as you will be getting a larger profit margin than when buying in units from other parties. There are many wholesalers in all cities and all you need is to contact them and shop around which one gives you the best conditions possible. A great place to start is Amazon Business. When you register for an Amazon Business Account, if you order £100, you will get a £50 discount on it. Registration is free if your business is verified. On top of that, you can get more good deals in terms of special product deliveries, and assisted purchasing solutions regardless of business type and size.
Are Trade Cards Necessary When Buying Wholesale?
Wholesalers issue trade cards that reward the loyalty of businesses that buy from them. They give you access to many wholesalers and give you the reputation of being an established trader. Some wholesalers won’t allow you to buy from them unless you have one, thus, its importance. The good thing is that they are free and can easily be obtained by fillnig out simple forms and giving them a proof of trade.
Why are Wholesale Goods Sold so Cheap?
Wholesale goods are cheap not because they are illegal or were acquired by dubious means but because of many other reasons. It may be because they have become outdated and new and more attractive models have arrived. You should still check out if they are usable which should be in pretty much all cases. Other goods are sold very cheap because they are returns of some things people bought from chain stores. This is where the most money can be made for small firms buying wholesale since price reductions are quite high. Finally, since wholesalers will be selling in high volumes, they will still be making more money by charging less than if they charged more selling in small quantities.
How Can You Buy Wholesale Products from Abroad?
It is recommended you don’t import things from abroad since the Brexit happened. Although this is a great way to improve your product selection and thus entice new and existing customers, thanks to this measure, it is more expensive to do now than it was in the past. Also, there are other many components such as taxes, shipping costs, international payments risks that come with doint that, that it isn’t worth it in most cases. When it comes to international payments, banks can charge unfair exchange rates for the transaction and mark the difference as profit for their business. This leaves you with an economic disadvantage. Also, they can charge your foreign wholesale supplier a fee for receiving the payment which will then be reflected on the price you pay for the goods.
Conclusion
As you have seen, buying clothes in bulk or buying wholesale is a good way to take your business to the next level when it comes to making profits. It doesn’t take too much effort or time and it is totally worth it.
Hence, if you are looking for great deals for luxury clothing or you want to request a catalog about our latest arrivals have a look at our wholesales brands section in our site.
