Manufacturers: Buying directly from the manufacturer typically requires a large minimum order.

Manufacturers: Buying directly from the manufacturer typically requires a large minimum order.

They typically prefer to sell through distributors, who purchase large quantities at substantial discounts and then sell smaller quantities on their own.

This information can be found on the websites of the manufacturers or by directly contacting them. Distributors: These will typically carry products from multiple manufacturers, providing a variety of options. Obviously, their prices will be higher than those of direct purchasing, but typically, minimum quantities are lower.

Liquidation: Good prices can be obtained by purchasing customer returns, bankrupt stock, and end-of-line items. If your business is based on buying low and selling higher with no unique product focus, then this could be for you.

However, the downside is that you won’t get a consistent supply of products, which will impact your business if you have specific regular needs. You can buy in bulk at great discounts on the original selling price. Importers: You’ll probably need to work with an importer to get specialty goods from another country.

Shippers by Drop: Drop shipping is an easy way to get products to your customers without having to worry about costs associated with shipping, inventory management, or storage.

Drop shippers, on the one hand, buy from manufacturers or distributors and, on the other, ship orders directly to your customers as you place them. There are disadvantages, including your dependence on them for all logistics. This indicates that you have limited control over service quality.

Additionally, they have direct contact with your customer base, putting them in a position to steal your business. Because of their business model, you and a lot of other people probably buy the same products to sell in the same markets.

This means there will be a lot of competition, which can only hurt margins. However, this would happen in any general market, which is another reason to have a niche market. Establishing a rapport with suppliers is essential to dealing with them. Your partner in this is your account manager.

You need to make sure that he learns about your company. He should keep you informed of developments, new products, and “deals” that fit your niche by being proactive. When you’re just starting out, it can be tempting to run before you can walk. For instance, by placing substantial orders before testing your market.

Make sure you have at least some evidence to show that your products will sell, and not just one or two, but enough to meet your sales and profit goals. Consider the following questions: what is my break-even point, how many must I sell to cover my expenses, what markup or margin can my market support, and can I purchase at the appropriate price to achieve these margin goals?

And so on: can you get samples, get the right product mix, and what is your supplier’s minimum order? A word of caution: there are scams, fakes, and businesses that are just plain bad. Be careful and do your research.