There is this nasty little rumor going around that says importing small quantities of merchandise is something that is very difficult to do. But the truth is that you can get virtually anything and everything you want. If you want 10 sets of authentic Chinese medicine balls directly from China, you can get 10 sets of authentic Chinese medicine balls directly from China. Perhaps that is all your store needs and no one should tell you, “No, you can’t order that few although you don’t need very many.”
The main difference here is cost. Yes, it is more expensive to ship more items, but the bargain is greater the more you get. And yes, you get a better deal if you order more, but you shouldn’t order more than what you need or you are going to find yourself with an excess of Chinese medicine balls. This actually results in a greater loss for you than having to pay more in wholesale cost because you ordered less. You don’t want to find yourself with an excess of the item and not be able to sell it.
But what happens if a company says they have a minimum order?
How do you conquer that?
Well, even if a company says that they have a minimum order of 25 items and you only need 10, you can order what is called a “sample order.” A sample order is a way in which you can see how the item performs in your store. If it performs well, then you can order more later on. It is important to keep in mind that these companies doing the exporting will not turn down money. They are not going to say, “No, you can’t have this because you don’t need 25 of them.” Letting you order 10 is going to provide them with money they wouldn’t have otherwise. No good business is going to turn down the very cash that makes them grow. That would be counterproductive, don’t you think?
With a sample order you will pay more per piece, but you have the benefit of “testing the waters” before you order in large quantities. So don’t let anyone tell you that you can’t run the store the way you want to run it with the merchandise that you want to sell. Better yet, don’t let them tell you how much of your merchandise you can buy and sell. That is just right out wrong. If you want to order 10, go for it. If you want to order 5, don’t let anyone push you around. You’re the boss, so let them know that.
Most manufacturers realize that a small sample order can quickly turn into a larger order and then, of course, an ongoing trade relationship. A great resource to get started in importing is a site called Alibaba.com where there are plenty of worldwide manufacturers ready to ship in small quantities.
Running a home based business can be such a great thing, but there are too many people who have this misconception that it is all candy and roses without any real pitfalls. The truth is that there are pitfalls and those pitfalls can make or break you if you’re not aware of what they are and how to stop them when they occur.
So here are some pitfalls that you may run into and the ways in which you can avoid them:
- Many individuals working at home find that the world believes they have it made. This means friends and family may not respect work time. It seems as if all of a sudden the world demands your attention even more because you work at home. So lay down the law to begin with. Tell them who the boss is (because you are) and explain that you cannot make a living if they don’t respect the times you have set aside.
- Battling distractions is like literally fighting a war. Actually, it is a war within yourself. This means not putting a stereo system or a TV in your office. You might think you have enough time to watch that movie and get your work done, but you might be quite surprised that these little things can really eat into your day. The next thing you know, you’ve been sitting in your office for 12 hours, feeling like you’ve accomplished very little.
- When you are working, it can be hard to know when to stop. Many individuals keep going and going so that they can get their work done. But what this does is take away that family time, causes you to become overworked, and may even make you lose your mind a little.
Don’t get too confident about what you are doing. Being self-employed means a lot of uncertainty. Don’t think you have the perfect business formula that is going to keep the revenue coming in consistently. You must strive to keep growing your business so that you can keep that income coming in. Some months are more profitable than others, so be careful with your money.
So take these things into consideration so that you don’t tank your business as soon as you get it started. Make sure you evaluate all the distractions a home business faces and proceed with caution, after all, you livelihood depends on it!
I am an advocate for staying updated with the latest Wholesale Industry trends and suppliers. Anyone one who is actively engaged in buying wholesale merchandise should subscribe to some of the larger wholesale magazines. Not only will your subscription offer new sources, but you will also be updated about consumer retail trends, marketing and merchandising. Subscription fees will vary, but again, well worth the spend!
Here are some of the more popular magazines:
Cover – Tag line reads, “Americas Source for for Wholesale Merchandise“. I have subscribed to this publication for years now. It is roughly 100 pages in length and offers page after page of wholesale suppliers for a wide range of merchandise. In addition the magazine offers retail trends and trade show information. You can view the latest issue online. Take a look- Published by Sumner Communications.
WebWholesaler – “The official print publication of Wholesalecentral.com”. Published by Sumner Communications, this wholesale magazine is a great compliment to Cover (Above). As of this blog post, you can sign up for a free subscription!
The Merchandiser Group – Magazines for the Flea Market and Swap Meet Industry. Published again by Sumner Communications. If you are a Flea Market vendor you need to get your hands on this wholesale trade magazine. Issues are geographically based on three areas: West, Midwest and east coast. Latest issues are available online!
Merchants News – Wholesale trade publication published monthly by Merchants Media. Filled with reputable and long time advertisers, Merchants News, offers a wealth of supplier contact information. A must have subscription!
Wholesale Merchandise “80,000 readers monthly” cannot be wrong, publication offers tons of supplier contacts for flea market vendors, eBay sellers and traditional retail stores.
Closeout News – Counterpart to Wholesale Merchandise, The Closeout News has long been considered the Industry standard for ‘below Wholesale” suppliers. This publication offers suppliers from the Liquidation market. A must have.
Over the years I have subscribed to all of these fine trade magazines. Chose one or all, you will not be disappointed.
Many of the readers who come here are looking for wholesale items to resell on eBay. But, did you stop to think that maybe you can find wholesale merchandise right on eBay? No…. I am not crazy, you actually can purchase large quantities of merchandise through eBay and turn around and retail each item one by one. I know of several successful eBay powers sellers who know how to spot a great deal on eBay and then “flip it” one item at a time right back on eBay!
Some of the more popular items which can easily be flipped on eBay include:
Large lots of apparel – Look for gently used or shelf pull apparel. Shelf pull apparel is simply clothing that was unsold in the original department store for various reasons. Often, this shelf pull apparel will have the original retail tags attached…a real bonus for selling on ebay. You can find gently used clothing lots on ebay that will offer a great source for “single” sales. Look for wholesale lots containing high end name brands. There are a few categories of clothing that sell very well on eBay including maternity, children clothing and plus sizes.
Jewelry lots – You can find great deals on bulk jewelry lots on eBay. There several manufacturers who are selling rings, necklaces, bracelets and body jewelry which can be purchased and resold on eBay. They key to reselling jewelry on eBay is producing quality digital photos for your auctions.
There are hundreds of other bulk lots which can be purchased and resold, they trick is to spend enough time on eBay searching. In addition you want to make sure that when you bid on a lot of merchandise that you factor your shipping cost into you cost per piece. For example, if you buy a 100 pieces of used apparel for $49 and shipping to your doors costs $30, your landed cost per piece is .79 each!
We should take this time to also let you know that once you become an eBay Power Seller you will have access to the Resellers Marketplace – An exclusive “members only” marketplace for those who qualify as an eBay Power Seller. As a Power seller you will gain access to excess inventory directly from many manufacturers, liquidators, and wholesalers.
What exactly is a Seller’s Permit? Sometimes referred to as a Sales Tax License or Resale License this is simply a legal permit to sell taxable merchandise. As a seller’s permit holder, you agree to collect and remit sales tax to the Franchise Tax Board in your specific state. You will need to obtain a sellers permit if you plan on purchasing merchandise on a wholesale level, as most suppliers will require that your license be on file. The license tells the wholesale supplier that you are engaged in reselling merchandise and collecting the appropriate amount of sales tax as required by the Franchise Tax board for your state.
Anyone engaged in retailing merchandise must apply for a state resale license with the State board of Equalization. The process consist of filling out an application offering information about your business. The issuance of your license can take up to two weeks after you application has been submitted.
An application for a resale license will contain all the information you will need to comply with collecting and distributing sales tax for the items you retail in your state. You must collect sales tax for those items which are purchased in the same state your business resides in. For example, an apparel retailer who operates in California must charge sales tax for any purchases or shipment of merchandise (on a retail level) in the state of California. Please consult the Franchise Tax Board or your accountant for retail sales across state lines.
Most wholesale suppliers will offer the opportunity to open a credit account, which will give you the option to order merchandise and pay with flexible terms. Unlike using a credit card, the supplier extends the credit to your business.
Many wholesale suppliers will extend credit offering, “Net 30”, which simply means payment in full is expected 30 days after merchandise is delivered. Often, a wholesale supplier will reward the buyer with additional terms if an invoice is paid in full within a shorter time frame. For example, 2% 10, net 30 would give you, the buyer, a 2% discount if if your payment is received within 10 days of the delivery of your purchase. Each wholesale supplier who extends in-house credit offers different terms, so make sure you understand the terms under your account before buying.
You must apply for a supplier credit accounts often by faxing in a credit application. Your wholesale supplier will offer an application asking some basic information including, but not limited to:
- Business Name/Address/Phone
- EIN (Employer Identification Number) or Social Security Number (Sole Proprietors)
- Expected purchasing volume monthly/annually
- References from other wholesale suppliers – Who have you purchased from?
- Signature authorizing the supplier to run your credit report
Once you have faxed in your application expect up to seven to ten days for approval and account set up. You will be given an account spending limit, which will be reviewed periodically by your supplier and possibly increased based upon your historical ability to meet account terms. Once your credit accounts are set up make sure to protect the power of business credit by paying your invoices on time and early if possible.
Buying wholesale merchandise can be like learning a new language. When searching through catalogs and viewing merchandise online the new wholesale buyer can be confused by the terminology and industry specific abbreviations.
I have compiled a small list of some of the more common wholesale packaging definitions for those who are new to the industry:
Case – This term describes to the wholesale buyer how many of an item will come in the original manufacturers shipping box. Many wholesale distributors will require you to purchase by the case.
Inner Case – Smaller box found in a Case. For example, a Case might contain 60 pieces which is comprised of five Inner Cases of twelve pieces. Five times twelve equals sixty total pieces.
Unit - A unit describes a single item or piece. For example, a case might contain 12 units or individual items
Gross - Term used to describe 144 of any one item. This term is often used to describe small, inexpensive items like children’s rubber bracelets. One gross equals 12 dozen. Abbreviated as “gr”
Dz – Abbreviation for one dozen (12) of an item
Poly Bagged – Refers to an item placed in a polyethylene or polypropylene plastic bag which allows for merchandise protection and consumer inspection. Often used with a colorful or informative Header Card.
Display Boxed – A box specifically designed to be placed on a shelf or retail counter. Display boxes will usually offer product information including merchandising graphics designed to “entice” the consumer into a purchase
Header Card – Cardboard folded card usually attached to the top of a clear poly bag in which the item is held. Offers the consumer an easy way to view merchandise contents.
Window Boxed – Cardboard box with at least one side protected by a clear plastic “Window” which allows the consumer to view contents. Used heavily in the retail toy industry.
Clam Shell – Retail packaging designed to open and close by a hinge along one edge. Clear plastic protective packaging also allows purchaser to view all sides of an item prior to purchase.
Another fascinating video from World Wide Brands Showing how, as a retailer, you can survive our slumping economy
Valuable tips for retailers and ecommerce sellers who ship merchandise. Video offers an inside look at the “Dos” and “Don’ts” of shipping. Brought to by The UPS Store and World Wide Brands
