A wholesale business model is based on purchasing new products at a cheap price that people need, use, or want, and reselling these items for more than cost. Your profit is the difference between the price you paid and the price you sold for.
The mantra is simple and dummy-proof - buy low, sell high.
The purpose of sourcing is to find products at wholesale price that you can resell at retail price.
Whether you have an eCommerce site or a physical retail business, you need a steady, reliable source of inventory. Otherwise, you're going to end up disappointing your customers through lack of product variety, back orders, and more.
Here are some avenues to source products for your business:
1. Trade shows
There are trade shows for a variety of different industries, including textiles, apparel, home furnishing, electronics, beauty, health and nutrition, outdoor sports, so on and so forth.
Not only are they good opportunities for networking with potential suppliers, they're also a place to spot upcoming trends. For instance, the China Sourcing Fair is organized by product type and attracts thousands of exhibitors and participants every year.
Attending a trade show gives you precious face-to-face time with your future suppliers, giving you the chance to show that you mean business. Show that you’re not just any consumer, but someone who knows the ins and outs of the business. Take the time to establish relationships and even negotiate terms.
Vendors would also expect you to be well versed in the wholesale environment (Ain’t nobody has time to waste!). Understandably, suppliers are unwilling to spend much time with newbies or customers who don’t know the ins and outs of the industry.
In addition, you get to compare prices and quality of products showcased and demonstrated by different suppliers at a one convenient venue.