Wholesalers connect manufacturers and retailers by buying stock in bulk from the manufacturer for a very low cost per unit, then distributing it to retail sellers. Wholesalers add a small margin to each lot they redistribute to make a profit. They can come in two forms: Light and bulk, each catering to different business's needs.
Light wholesalers specialize in dealing with smaller retailers and sell in smaller quantities. Bulk wholesalers only distribute in large quantities.
The biggest advantage of using a wholesaler is that they offer amazing wholesale prices. Wholesalers can offer you stock at around 5-35% less than retail - and even greater discounts are available when you are buying in huge bulk!
Wholesalers are also great for getting you access to some of the latest items. They often attend trade shows to see what is up and coming in hot items which buyers will go crazy over.
In order to offer you the best deals possible, many wholesalers require you to fulfill a MOQ, or "minimum order quantity". While some wholesalers do not have MOQ requirements, it is often the case that those who do can offer better prices per unit on items.
Some sellers are under the impression that they need a lot of capital or buying power to be able to deal with wholesalers, but this simply isn't the case. In fact, plenty of wholesalers specialize in dealing with smaller eBay businesses. By helping them in the beginning, they can help themselves by securing them as larger clients in the future as their business grows. In the SaleHoo supplier directory we list many wholesalers who are more than happy to deal with small eBay-based businesses.
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