If you’re interested in buying wholesale products then you should take a look at our dropshipping page, there’s a list of reliable wholesalers there or visit SaleHoo.
SaleHoo is an online wholesale directory and community for online traders, eBay sellers, and traditional retailers. They have a huge directory you can use to find a wholesaler, dropshipper or manufacturer for pretty much any product you can think of. SaleHoo was established in 2005 by New Zealanders Simon Slade and Mark Ling, and now employs 29 staff in four different countries, with a strong supporting network of eBay powersellers.
It is a good idea to create a wholesaling section on your website where buyers can access with a password and order directly through that area. Giving buyers a myriad of ways to purchase from you will increase your chances of wholesaling success, offer payment by PayPal, Direct Deposit etc and let them order directly online or email, make the process as easy as possible for your customers.
It can be a bit tricky determining wholesale prices for your products. Here are some guidelines.
How do I work out a wholesale price?
Firstly you will need to work out how much the product has cost you to make. These costs can include materials, postage, your time etc. Take a bit of time thinking about this first step – don’t miss anything or it will cost you later!
When you have calculated this first price it will equal your break even price. Now you need to determine your profit margin.
The second step is to determine the profit margin you require. This is an individual amount sometimes worked out simply by adding 100% onto the break even price. This gives you all your costs back as profit. However this method seldom works if you are competing in the market with similar products to your competitors. For instance if your competitor is selling an item wholesale for $4.50 and you know your break even price is $3.00 then you can’t charge the 100% profit margin as this would out cost you in the market making your product $6.00, way more than the $4.50 your competitor is charging.
Therefore you need to research your market and knowing your break even price, come up with a wholesale price that can be competitive.
You need to as an example;
1) add up ALL of your costs (including your time) to produce the product
2) add a reasonable profit (10-15%) – that’s your wholesale price
3) add another 15-30% – that’s your recommended retail price
To be competitive you must research the average retail price similar products in your market are selling for then divide this retail price by your break even cost. This will give you the overall price multiplier that retailers are charging their customers. If a product is selling for $12.00 and your break even cost is $3.00 then the retailer is charging 4 times that to their customers. This allows you to determine if your wholesale prices are reasonable, remembering that retailers will buy wholesale products at the best price they can get.
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