Trading Advice

Should Wholesale Buyers Target Branded Products?

When targeting wholesale products to sell on, most re-sellers are immediately drawn to brands that are popular with consumers. But is this always the best way to do business? Wholesale Scout investigate.

Branded items – whether clothes, cosmetics or electronics – are always targeted by consumers because of their popularity and trusted name. However, wholesale buyers can perhaps make a better return on investment by targeting more niche products.

Keeping your inventory versatile is a really effective way of building profits as you will ensure you are catering for everyone. Branded items and trending products shouldn’t be ignored but by simply branching out to include lesser known products you increase your chances of maximising profits.

This is because making a healthy return on branded items can be difficult as demand automatically increases the cost price. Sourcing the most competitive wholesale supplier via a wholesale directory will help you to increase profits but there are a number of factors to consider. For example, the Xbox 360 is popular amongst many consumers especially with the introduction of Xbox 360 Kinect. It’s versatile and appeals to both men and women. But unless you are a big wholesale company with lots of storage space, buying power, an extensive history and a good online presence you may find it difficult to secure competitive prices. This has been made even more difficult by the rise in internet retailers like Play. Profit margins for branded games consoles are generally between 3 – 10% so you need to sell a lot of stock in order to see the benefit. Dealing with manufacturers can help you to gain rock-bottom prices although many will include minimum orders.

You can definitely make money from buying branded products however to ensure your wholesale business continues to grow, look at including a variety of non-branded/niche items to your inventory. Using a tool like eBay pulse you will be able to search online for product trends and find out what people are searching for to ensure you are making informed purchases.

So although you should consider stocking branded products when appropriate, perhaps think about the diversity of your inventory and constantly review it to boost the success of your wholesale business.

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