Wholesale - online sales

How to Start a Beginner Wholesale Business? Leave a comment

Starting a wholesale business can be a great option, whether you're a business grad looking to start your own business or someone bored with your current job or a talented manager looking to unlock your full potential. for his own account.

The basic principles of commerce have always been the same for centuries, you sell goods for a profit, except that in 2022 commerce in general and wholesale commerce in particular have evolved enormously, the digital revolution has been there!

If you are looking to become a wholesaler, read this guide. Here, we'll talk about what a wholesale business is, key steps to running a wholesale business, and important wholesale considerations for a small business.

Wholesale - online sales

What is a wholesale business?

Wholesale is the purchase of products in large quantities or the purchase of products in bulk directly from manufacturers or distributors. In other words, a business that only buys and sells large quantities is referred to as a wholesaler or more colloquially as a wholesaler.

Essential functions of a wholesale business


Manufacturers sell products in bulk in most cases, wholesalers source them in large quantities at low prices and then resell them to retail stores or outlets. Once the products arrive at the retail stores, the end consumers buy them according to their needs.

Wholesale businesses don't have to spend too much on handling and other costs involved, so it can be very profitable if done right.

Storage and packaging

Because a wholesaler buys products in bulk, ample space is needed to store the products until demand is created in the market. In your warehouse, you may need to subclass items into smaller packages.


Transportation is used to deliver products to retail stores and outlets. When you run a wholesale business, you may also need to provide transportation.

Wholesale - online sales

Types of wholesalers

merchant wholesaler

A merchant wholesaler is the most common group of wholesalers, who deal in all kinds of products and usually take title (property rights) to the goods they handle. Often related to the merchant wholesaler, the other participant in the wholesale trade is the agent and broker. Agents and brokers operate as independent salespeople who facilitate sales of merchandise between the merchant wholesaler and retailer and earn commissions when sales are made. Agents and brokers do not take possession of the goods, and this is where they differ from traders.

Specialized wholesaler

As the name suggests, a specialty wholesaler is very specific about product type and industry. They can buy the product from several producers, but their basic product remains the same.

Online wholesaler

Of all the types of wholesalers, this is the last entry. An online wholesaler sells products on an online B2B marketplace at a discounted price and in large quantities.

Dropshipping wholesaler

By leveraging an online platform, wholesalers can deliver products directly to consumers. A dropshipping wholesaler may sign a contract with a retailer to operate properly.

Wholesale - online sales

Key Steps to Starting a Wholesale Business

Choose the type of wholesale business for the small business you want to start

Looking to run a wholesale business? First, you need to choose the type of wholesale business you want to run. A wholesaler buys wholesale products at a lower price, so be sure to research and find the right type of wholesale.

Identify the market

Like any other business, you need to do proper research and identify your target market. The first step to becoming a wholesaler is to identify your target industry, manufacturers, suppliers and retailers.
A vital part of your research includes identifying your competitors, their products, scale of business, pricing, quality of services, and all aspects involved.
Once you have identified your target wholesale market, study its dynamics and all aspects to learn more about it. Make sure you understand what you are aiming for.

Select a location for your office and warehouse

Offices and warehouses are scarce and expensive in cities and commercial areas. Because you've just started your wholesale business, there are a few things you need to consider at this particular stage.
Identify a location that is cheap, convenient and beneficial to you. Your office and warehouse should be nearby so you can visit them whenever you want without spending too much time and money. Most importantly, make sure office and warehouse rents don't exceed your profits.

Find your suppliers

Once you have identified your market, find suppliers willing to name you as a wholesaler. Some manufacturers require wholesalers to meet their sales targets. Take this aspect into account when choosing your supplier.
If a company is unwilling to appoint new wholesalers, talk to the distributor and you may get a dealership. You can either work on a profit split basis or buy products from distributors and resell them to low-cost retailers.

Sell online

If you are going to start a wholesale business, selling online is a great decision. Today, the vast majority of professional buyers are found online and transactions are conducted online. B2B trading platforms such as Shoppydeals.fr not only offer a substantial buyer base, but also services for those with no e-commerce experience.

Selling online is a great way to attract both end consumers and retailers. Instead of going after retailers, they will come to you.

Create a return policy

Customer service is an important aspect of every type of business, and wholesale is no exception. Some retailers may not be able to sell your products and would like to return products. Therefore, make sure you have a return policy.
To create a comprehensive return policy, always consult your supplier and manufacturers return policy first. Then create your return policy accordingly.

Get Intuitive and Efficient Inventory Software

You might want to work the conventional way, but having inventory software pays a lot. It helps you track your inventory in your home and you can determine the relationship between demand and supply for your business.

Important Considerations to Make When Starting a Wholesale Business

Understand the competition in your industry

One of the fundamental considerations of starting a wholesale business is to study your competition. Identify your ideal competitors, identify their target consumers, find their unique selling point and the quality of services they offer.

Get started on the right foot – set minimum order quantities and prices

Depending on the competition and your cost of operation, set your prices and minimum order quantities (MOQ). In the beginning, don't worry too much about profits. Try to establish your relationships in the marketplace and build long-term partnerships.

Consider the viability of your business

When you want to start an entire business, consider its viability. Research everything, including the price of the product you want to buy, the minimum profit you want to make, shipping costs, and all other costs involved. Find out if your business model can help you future-proof your business or not

Hire experienced staff

When you run a wholesale business, you can't do it alone. You must have experienced hands and minds ready to work for you. Hire experienced staff who have worked in the wholesale business.

We hope this guide answers your questions about starting a wholesale business and wish you the best of luck with your new business endeavors!

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