As a boutique or store owner, your priority is your bottom line, and you can improve your return on investment if you buy in bulk from a wholesaler. Here are 7 benefits of using wholesale products in your store.
Some people think buying in bulk means purchasing large quantities of a product to stock their shelves. To some, it means they don’t have to go back to the store for a while. Others think it means getting a significant discount. The truth is, bulk buying is a combination of these statements.
The industry definition of buying in bulk means to purchase large quantities of a specific item at one time to reduce the price you pay for each item without wasting, or not using, any of the products.
Why Should You Buy in Bulk?
Bulk purchases can be made from wholesalers or companies that sell products in large quantities. Wholesalers are like the middleman between a manufacturer and a business owner. They make it possible to get great deals on quality products. Retailers, specifically, benefit from buying products in bulk from wholesale companies.
Keep in mind you may be spending more money upfront but will be saving money in the long run. Saving money is a big reason to buy in bulk from a wholesaler. That’s why we discuss it first.
1. Saves Money for Your Business
Business owners who know which products will get used or will be easy to sell can save a lot of money when they buy in bulk. There are specific steps you can take before buying in bulk that can save you even more money, like:
- Only buy what you need
- Buy products that don’t expire
- Search the wholesaler’s sale items (yes, they have sales!)
- Understand the products you are buying
- Take advantage of promotions when available
- Schedule purchases so they can be shipped together, which saves on shipping costs.
2. To Make Money for Your Business
It’s good to save money. It’s great to make money. Profits are what you need for a successful business. Buying products in bulk gives you better gross profit margins when you resell the items.
Gross profit margins are calculated by taking the revenue and subtracting the cost. Then, divide that number by the revenue multiplied by 100.
For example, if you buy a tank top from a wholesaler for $5 and sell it to a customer for $8, then your formula will look like this:
$9 – $5 = $4
$9 x 100 = 900
$4 / 900 = 44.4%.
Knowing your profit margins can help you adjust prices if needed.
3. One-Stop Online Shopping
You’re busy. You could use some extra time in other areas of the business, like marketing. When you buy in bulk from an online wholesaler, it gives you that time. You can shop at one place for all the products you want to sell in your retail store.
If you had to visit stores in person or attend several different trade shows to purchase products for your store, you would be out a lot of time and money. Good wholesalers make it easy by allowing you to shop from the comfort of your home or office.
4. Customer Service
Quality wholesalers provide customer service to answer questions, discuss your order, or provide information about the company. They understand problems don’t just happen between the hours of 8:00 am and 5:00 pm. They realize you may need help at night or on the weekends.
Their goal is to assist at any stage of the bulk buying process. They do this by providing customer service contacts for any time of day.
5. Product Selection
Wholesalers keep up with the trends in all industries. They stock up on items they know will sell in your retail store. If you are successful, then the wholesaler is successful. It’s a win-win for everyone, especially your customers.
You can get products from popular brands. Because wholesalers have close relationships with the manufacturers, they have insight into what products will be coming out in the future.
This insight is passed on to you, the retailer, so you can stay ahead of the game.
Product quality is a priority with wholesalers. Just because you get items for a lesser price doesn’t mean you aren’t getting high-quality too. You will know exactly where your product comes from and feel better knowing your items have not been handled or worn from multiple shipping locations.
When you buy in bulk from a wholesaler, you get greater product variety. You aren’t limited to what’s on display at the time. For example, if you are shopping for clothing for your retail business, you can choose products for men, women, and kids. You can select sizes ranging from extra-small to big and tall. You get to shop for accessories that match the clothing.
The list of options continues to grow as your business grows.
7. Small Bulk vs. Large Bulk
Wholesalers understand a small boutique may not need as many products as a large department store. Therefore, they allow smaller bulk ordering for those who need a few pieces of an item. If the smaller bulk sells quickly, you can reorder and receive your next bulk buy in a short period.
Allowing small bulk batches is one more way wholesalers set your business up to win in the retail market. You don’t have to worry about having large quantities of items that didn’t sell. Product waste is reduced, saving you money.
It is So Easy To Get Started
Most online wholesale companies make it easy to get started right away. You can create an account by entering an email and password. Then, you will enter your business information.
As you shop, you will place items in your online cart. When you are ready to check out, you have payment options like PayPal, credit or debit card, cashier’s checks, bank wiring, and more.
Then, all you have to do is sit back and wait for your products to arrive, which, by the way, is relatively fast since many orders start processing the same day you order. Some wholesalers even offer free shipping for orders above a specific amount.
Buying in bulk from a wholesaler is fun, convenient, simple, and can help your business thrive. Start your wholesale order today.