- What is the wholesale distribution business online?
- What needs to do for the start?
- How to be profitable
- Recommendations of suppliers
Offline business becomes extremely challenged, in 2020, due to the corona-virus outbreak and widespread.
Even, it was published that 1.37 million jobs added in August in the U.S., and the unemployment rate falls to 8.4%.
However, it was not mentioned that the number of jobs added in August was the smallest since the corona-virus pandemic began – down from the 1.7 million added during July.
Some 22 million jobs were lost to the pandemic and only about half of them have been recovered.
Losing a job is still a worrying problem. Thus, starting a distribution business online seems like a wise and smart option.
During the pandemic, making a sustainable living means you have more courage to fit in an unpredictable future.
What is the wholesale distribution business online?
Simply, you start to buy goods, especially daily consumer goods, costumes, cosmetics, and fashion and cheap jewelry, from wholesale suppliers with cheap and good-quantity goods and sell them to your customers on your shop of amazon or of Facebook or of Shopify or even your own website.
This purchase-resell process is a common pattern of the distribution business, and the main feature of this business for the starters is, as a distributor, the starters do not risk in buying goods in stocks or overstocking.
This allows a man to could a startup without a warehouse and at a low cost.
Also, it is a new business pattern that originates from the boost of B2B.
The reasons why a man is advised to be a distributor online during the pandemic may include:
As has been mentioned before, as a starter, the distribution business asks for a lower cost.
Moreover, this will ensure that you may not incur a huge loss in case of your business failure.
Time for researches
Research on the best-sellers and carve out a niche from the products that are free time to you while you get plenty of time to stay at home.
Use your time well, do not waste it into some boringly killing parts.
Free social marketing strategy
Since finances are a bit tight you can start by promoting your business on the free social media platforms.
Distribution allows for a wider customer reach as it allows for you to tap into an already wide network of retailers who will then be used to sell your products.
As a distributor, you will only act as an intermediary between the manufacturer and the customer and so you only need to have a network of retailers within your reach to be able to make profits off your business.
Be flexible and adaptable.
Once you start your business, you will work on how to improve them, and you have to be flexible and adaptable to every situation you may be trapped in.
What needs to do for the start?
To do well in starting the distribution business, you may be suggested to do as the following steps:
Do more research on goods.
To start this business, what makes you worried about maybe the product. Which for resales and will make a good profit?
A good selection of the product may speed up your success.
Pieces of advice on the product:
- Cheap. Goods at low prices bring you more profit and save your cost.
- Small volume. Goods with small volume will cost less shipping fees for you and your customer, thus, your customer could buy the goods more frequently.
- The fast trend of goods. For these items, people need them but the trends update every single season. People’s needs change as the trends change.
- Keep looking for niche products. I mean best sellers always get changed by marketing, once you find the niche products,
Do more research on your running platforms.
Since it is an online business, everything will be run via the websites, no matter the website of Facebook or an e-shop of Amazon.
Having an online store is the basic requirement for any distribution business. After you have researched a product, you need a place where the customer will have access to the products you are offering.
Totally, for now, several ways to run the online business:
Open an eshop on Amazon
Open an eshop on Shopify
Set up your own shopping website
Sell on the social webs, like Facebook, Instagram, etc.
Different rules are there among these ways, and the most essential requirement for starters is to well study the rules and policies. Make your plans with details and arrange to do it.
Find a Supplier
The whole distribution business model is based on the supplier, this fact makes finding a supplier the most critical part of the business as they are responsible for the smooth running of your business operation.
As we have found out, the supplier who can be the manufacturer or the wholesaler ensures that the product is available for shipping. Finding a supplier involves conducting thorough research to find the best fir for your business. The supplier should be well trusted and have quality products that should be delivered at the specified time.
To be able to find a reliable supplier, you can browse through the numerous online directories of wholesalers, and once you have identified one that you can work with interact with them and know how they do their business. Ensure you also read on the reviews to get the account of previous buyers.
Invest Your Time in the Business
The distribution business is one that needs you to be in constant communication with either the customer or the supplier depending on the stage of operation the product is in.
As opposed to investing so much money you may only need to invest your time to grow your business. This will enable you to know about how to successfully operate the business and help you know your customers so that you will be able to make the best decisions.
Investing your time will also allow you to make decisions that are critical for the success of the business by helping you to develop the best skills that will make you better as an entrepreneur.
Market Your Business
Marketing often serves as the icing on the distribution business cake. To get more customers you will need to identify a marketing strategy that will allow you to reach a wide range of people.
When starting, social media should be your first choice to market your business, first setting up a social media account is free and as long as you choose to market your product on your own, you may not have to spend a single penny on marketing. If you want to go all out you can opt to use affiliate marketing options to get your business out.
Use Google ads or SEO methods to explode your own setup website. It is vital to spend your time concentrating on Google services, cause your website depends on it.
Use Facebook/amazon ads to let your pages or shop be exposed to users. In the period of starting, the more exposures the more clients.
How to be profitable
To be profitable or make more money is the most driving aim for every business. Tips on how to be profitable as follows
Purchase Fast Moving Products
As I mentioned again and again.
There are products, and there are products. Some products will move faster than others. This is precisely what you must look out for.
One of the ways to determine this is to undertake some research. Doing this will enable you to be conversant with goods that will leave your shelves as soon as it hits it.
Take Charge of Your Pricing
Before anything else, your pricing must be able to take the hit. Stores expect your products to be priced at least 50% lower than your regular retail prices.
Store owners need to make a profit too, and expenses pile up quickly when running a brick and mortar.
If you want a store to keep ordering from you, give them a reason to be happy to work with you by making them money!
So take a good look at your products and what it costs to make them.
Can you afford to sell wholesale? If not, how can you lower your costs? Consider purchasing materials in bulk, streamlining your production process, and maybe even outsourcing help.
Photograph Clear Pictures
Photograph your products on white. You must have clear product photos of your line on a white background. This is not only the standard, but it’s a lot more professional and showcases your products without any distractions! Having great photos is necessary when creating your line sheet.
Think about the Packaging
Almost as important as the product itself is the packaging.
Even if it’s a hangtag, how you choose to package your products for display can make your work so much more appealing to a store’s customers.
You may or may not require packaging for each item.
But if you’re selling soap, stationery, or sets of coasters (to name a few), you’ll almost definitely want to think about how you’re going to package them for the shelves.
The packaging you use for selling to your retail customers will normally be different than what you use to send to stores.
Market Your Goods
What happens when you purchase your goods and do nothing about pushing them to the market for people to see them? Simply put, no sales would be made. This is what may likely happen if you do not put adequate measures in place for the right marketing.
There are several ways you may want to market your goods. One of the ways would be through the internet. Another is through roadshows. Yet another is by telling people about it and so on.
Market Your Goods Online
With the way the world has so advanced in technology, it is clear that people make plenty of sales from their online contacts.
You, too, may also look into this medium of making money.
One of the ways you can do this is by being active on the various social media platforms.
You may consider posting your product picture on Facebook, Instagram, and a whole lot more.
Recommendations of suppliers
As we have discovered, finding suppliers are the backbone of the business, and therefore finding a good supplier is paramount to the success of your business.
Below are some of the best suppliers you can find for your business:
Nihaojewelry is a top supplier for fashion jewelry and accessories along with a selection of women’s clothes handbags and shoes among other products.
Nihaojewelry offers the best quality products at affordable prices to enable you to start up your business and make profits. Nihaojewelry offers the best distribution services by allowing you access to an updated website of products which you can easily get access to the market.
The company will also provide you with quality products that will be delivered on time to allow you to run your business efficiently. Their helpful customer care representatives will also ensure that all your concerns have been adequately addressed.
Oberlo allows you to find a variety of products to sell online by facilitating easy access to products from a variety of suppliers. The company ensures that your products will be packaged and shipped to your customers hassle-free. Oberlo links businesses to the Shopify stores where customers can find and purchase products.
Salehoo offers a variety of suppliers and products at affordable prices to help you start your business. The platform provides efficient customer care services to help you along the distribution process.
Mega goods inc. provides a wide range of high in demand items to enable you to efficiently run your business. The company specializes in distribution services and provides fast and efficient processing of items and reliable service to help you conduct your business.
The site offers a variety of products to dropship and links you to a range of suppliers. The site also allows you to download images to use for your store and offers the option of free registration and automated drop ship solutions.
The distribution offers an easy and efficient way to start an online business.
Once you have identified a niche all you need to do is to find the best supplier to work with and ensure that the products you supply will be of good quality.
Distribution allows you to have easy access to a wide market range and enables you to conduct your business from any place.
If you are looking for a business that is hassle-free and that requires minimum capital, distribution is the way to go.