Wholesale FAQ: All About Reselling Items
Wednesday, April 1st, 2009I’ve got items to resell, so how do I find customers?
It is best to have a hierarchy of categories on your site for items you are selling. For example, if you are selling soap, you may have a sub-category named “soap.” However, in order for people to find that item, you may need to also list the same item in a more general category such as “cosmetics” or “skin care.” Think how you can help people find items in your online store.
Should I charge a certain percentage above my wholesale price for items I resell?
It may depend on the price you paid for the item. A common mistake is to resell an item for a very small amount over their cost. If you make a habit of this practice, your business is likely to fail. Remember, you’re in this to profit. There are many administrative costs involved in sales, and you’ll set yourself up for failure if you do not have a sizable profit.
For smaller purchases between a few cents and $20, plan on at least doubling the price. For purchase costs above $20, you should consider selling at least %40 above. For higher ticket items above $100, anywhere from $20 to 40% is reasonable.
If your price cannot be increased within those ranges for a sizable profit, you should consider re-negotiating the price with the wholesaler. Another option is to ask the wholesaler if they will consider drop-shipping for the same or similar price, thus keeping your overhead costs down.
Where do I look for photos and descriptions of wholesale items I want to sell?
Your wholesale can usually provide you with images. However, they will not necessarily be included, and you may need to request them. Call the support phone number or use the support email. Most of all, get to know your sales/support person. You will often find that you are able to acquire images and other perks due to your relationship. If you belong to an online wholesale membership, they are usually included in an online catalog. When you request images, your wholesale supplier will usually send you a CD containing images for your use.
