The wholesale world is of interest to many, but understood by few. Why is the wholesale marketplace so elusive? Because those who know about it profit from it, and those who profit from it don't want to share their secrets. If you want to make money by selling products on eBay or at other selling venues, you're going to need to learn about the wholesale world.
The wholesale market is a completely different world than the retail market. Prices are lower and transactions are handled differently. Instead of catering to the consumer, wholesale companies cater to retailers and resellers. When you buy wholesale products, you get rock-bottom prices. Oftentimes wholesale establishments offer quantity discounts to retailers and resellers. The more you buy, the less you pay.
For example, if you want to sell cell phone cases, you might purchase two or three to see how they sell. The wholesale company may charge you $2.00 for each of the cases. If you discover that the cases are hot sellers, you may want to purchase another dozen or so. At that point, the wholesale company may offer you a price break and you may only have to pay $1.50 or $1.75 for each of them.
Oftentimes wholesale companies will sell items in what's called a "lot." These lots consist of an assortment of merchandise that the wholesale supplier has grouped together and is offering for a set price. Lots are usually sold at substantial discounts. After you have gotten your feet wet and you become more familiar with the buying and selling process, you may want to consider purchasing one or two lots.
It's important to remember that when you buy wholesale lots, you're not always going to get to pick and choose the merchandise you order like you would if you paid retail prices. For instance, if you're ordering a lot of 20 purses, you might not be able to choose the exact color or design of the purses sent to you.
When a wholesale company sells something in a lot, you have to take the whole lot, regardless of whether you like every single piece of merchandise in it. Many resellers and retailers know that even though lots often contain some items they won't be able to sell (or won't be able to sell for much), the other items in the lot can more than make up for the "rejects" if sold properly.
While it may take some time and effort to become familiar with the wholesale process, it's time well spent if you're at all serious about making money and selling online.
