Whether you are a small wholesale buying business and only buy a few products a year for resale or you are a more established reseller that resells items for profit regularly, you’ll no doubt notice that the wholesale industry is changing all of the time.
Stock can go into clearance bundles quickly, wholesalers change their prices regularly and a great deal you saw a few weeks ago may not even exist now. The changing wholesale industry means you should always keep on top of industry news, supplier details and product trends in order to maximise your opportunity of making a profit.
If your business has seen fewer customer visits, less website clicks or a reduction in sales recently it could be a sign that you need to revisit your strategy. Here’s a list of possible reasons why your business might need a revamp and some tips on how you can make the most of your profit making opportunities.
Your Wholesalers Are Outdated
Everyone in the industry knows that it can be tough to find wholesale suppliers that are both reliable and can offer the best wholesale prices. There are so many rogue traders offering wholesale deals that they cannot supply so if you’ve found a wholesaler who is reliable, it can be tempting to stick with them for all of your product inquiries. But having a number of wholesalers to contact is essential. Speaking to different wholesalers can help you to gain better prices (especially if they know they are in competition for your business) and can help you ascertain the value of a product you are searching for. For example, if you’re looking for Xbox games to resale it would be much more beneficial to look at video game prices from a number of different wholesalers as this can give you a general idea of their value and possible profit on resale.
Tip: To ensure you are always getting the best deal keep up to date with your wholesale suppliers and add new suppliers to your contact list on a regular basis. If you use a wholesale directory you will find it easier to search for wholesalers that are reliable and trustworthy.
Your Products Are Not on Trend
If you’ve been noticing a dip in your sales then you should revisit your inventory to assess whether it could be a problem with your stock. Stock is fast moving and what was in fashion last summer might not be this summer. In order to maximise your sales you should concentrate on products that are on trend or seasonal products as these are usually easier to resale.
Tip: Look out for on-trend products by using social media and networking. What products are people looking for? If it’s a product in a certain sector, like video games, general sales within the sector should increase and therefore you could concentrate on buying stock for this specific market. You should also be aware of seasonal items – searches for items can greatly depend whether it’s spring, summer, autumn or winter so keep this in mind when buying new stock.
Your Adverts Need Improving
Once you have your stock to resale it’s crucial you choose the right place to advertise it – and if you haven’t, this could be effecting your sales. If you’ve listed it within a wrong category on eBay or haven’t included pictures with your advert on Amazon then you need to revisit your advertising strategy.
Tip: Regularly assess your product ads by comparing them to your competitors. Are you coming up in product searches? Are your product titles descriptive? Are your product descriptions detailed enough? Have you set a competitive price for your item? These are all worth re-assessing regularly and tweaking in order to increase interest in your ads.
You Are Not Getting the Best Deals
Negotiating deals when it comes to buying products at wholesale is crucial if you want to create the highest profit margins. If you buy the latest Playstation console for only £10 less than its retail price then it’s unlikely you’re going to make a huge profit…
Tip: Negotiate with multiple wholesalers to get the best purchase price. Some items won’t come with a high profit margin (electronics that are popular including Apple probably won’t have much room to make profit on resale) but there are a number of items that do. Look out for niche areas and products to minimise your competition – the less people trying to compete against you for sales the better. You should also consider buying bulk to drive trade prices down.
If you are looking to revamp your reselling business hopefully this can give you some tips to increase your sales and drive your profits up!