How to save money for wholesale business?

If you do a wholesale business, you need to buy in bulk from your suppliers, and sell your products directly to the end customers or to the retailers. The gap between your selling price and the cost is your earnings. The selling price may be more related with your marketing and your target customers. So here I will focus on how to save your cost for wholesale business, mainly for products cost and shipping cost.

  1. How to save products cost?

(1)Choose wholesale suppliers or platforms. There are many suppliers or platforms for different sellers. Some are just for retail, while some are especially for drop shipping or wholesale. You’d better choose a reliable wholesale platform with rich items. Then you can get a much lower product cost.

(2)Make stock plan and try to buy more for one time. Quantity determines price. The more you want, the stronger your negotiation will be. Many wholesale platforms will offer recharge and stock in advance service. You can estimate your monthly sale, and buy at one time to get a lower product cost. Try to build a long business partner relationship.

2. How to save shipping cost?

(1)Products of the same category shall be purchased from one supplier as far as possible, which can save you much shipping cost. Many wholesalers will buy goods from China. As we know, China has very powerful supply chain, whose products are rich with competitive price. But you must pay a lot for shipping. And shipping cost is depends on weight and volume, usually added on a minimum cost. So you’d better bundle all things and ship together that will save you many minimum costs. How to bundle? The best choice is buy things from one supplier and he will send all your things out together. Or find a professional wholesale platform. Although you may buy from different vendors, the platform provide consolidation service. The most extreme case that you must buy from different vendors and they are not in the same platform, then you’d better find a shipping agent in China (Let’s suppose you buy things from China.). All your suppliers send your goods to this shipping agent as the shipping fee in domestic is very cheap, $1 for 1 kilogram. Then your shipping agent ships all products to you.

Note: You may also need to control the volume and the total value of one package. If the package is too big or the value of one package is over a certain amount, then the package will be levied by the Customs in your country, which is also a cost. Generally, you can ask your shipping agent to declare a lower value.

(2)Make stock plan in advance and choose a suitable logistics channel. First you need to have logistics knowledge as your common sense, like different channels have different timelines and different shipping cost. Generally, faster transportation means higher shipping prices. So I suggest you to make stock plan in advance and choose a relative slower logistics channel, then you will pay less shipping cost. The price advantage of your products will be greater.

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