Another method of Product Sourcing for your Home-based Internet Business is to buy "in bulk" from Wholesale Suppliers.
This means, of course, that you find a Wholesale Supplier, and spend some money up front buying a few cases of products from them. The Wholesale Supplier ships those products to you. You stash those cases of products in your garage or spare room, and re-pack and ship each product individually to your customers.
of this method is this:
∑ When you buy anything in bulk quantities, you do get better Wholesale Prices. This gives you a better competitive edge when you sell in price-driven markets like eBay. Keep in mind that eBay is what is known as a price-driven market. When people are buying products on eBay, they're looking to spend as little money as possible for those products.
So, many eBay Sellers prefer to buy products in bulk, because they do get better wholesale pricing, and have more room to make a better profit in a price-driven Auction market.
The disadvantage of this method is this:
∑ Most real Wholesale Suppliers won't work with you.
It's unfortunate, but true. Most of the real Wholesale Suppliers out there do not want to sell bulk orders of products
small, Home-based Internet Businesses. Why? Because we don't have the money to
order thousands of dollarsí worth of products at one time.
You see, a Wholesale Supplier's business is based on volume sales. They don't make very much of a profit on the products they Wholesale. That means that they have to sell a lot of product in order to make money. So, a Wholesale Supplier's main business is selling truckloads of products to large retail chains, like Sears, Target, Kmart, etc. They simply won't sell to anyone who can't afford to place a minimum order ranging from $5,000 to $25,000 or so. They don't consider it to be worth their effort!
Worldwide Brands comes to the Rescue!
Yes, I'm going to talk about my company again. I know I've said it before, but I really want to stress that the purpose of this EBook is to help you with genuinely free information. It is not meant to be a commercial for my company.
However, what we do here is to create real solutions to some of the problems you're going to face when starting your Home-based Internet Business and it would be silly of me to not tell you about those solutions!
∑ Most real Wholesale Suppliers will not work with Home-based Internet Businesses, because as a small, Home-based Business, you can't afford to spend between $5,000 and $25,000 to buy the minimum quantities of products required by these Wholesale Suppliers.
∑ Over the years, my company has become very well known in the Wholesale industry, because we've not only helped small business owners to connect with Suppliers; we've brought a great deal of business to many Wholesale Suppliers from small businesses.
Because we have that reputation, we
are able to go to large Wholesale Suppliers and say, "Look, there are a
lot of small businesses out there who
want to buy in bulk, but can't afford your high minimums. If you're willing to lower
your minimums to an affordable level for us, we will get your company's
name out to many Home-based Internet Businesses that want to buy from you.
Well, the Wholesale Suppliers know us, and they like the idea that we can bring them your business without costing them any advertising money on their end. It's truly a win-win situation for everyone.
"Light Bulk" Wholesaler is a term that we created to describe a real Wholesale Supplier that will:
o Sell New, Factory-Warranted Products, at Wholesale Pricing, to you; the Home-based Internet Business Owner.
o Sell to you in Affordable Quantities, with minimum orders under $500. That's why we call it "Light Bulk".
o Our Research Team has spoken personally with each and every one of the hundreds of Wholesale Suppliers in this Directory. They are all willing to do business with you on the terms above. Their contact information is updated constantly, and our Team adds new Wholesale Suppliers on a daily basis.
Anyway, thousands fully pre-verified and legitimate Light Bulk Wholesale Suppliers are available in our Online Directory, available on our web site at WorldwideBrands.com. So, enough with the commercial. Let's talk some more about how to actually pack and ship products from your home.
Using Light Bulk Wholesalers
1. Once you find a Light Bulk Wholesaler you want to work with, you'll call them and set up a free Account, so you can buy from them.
2. You'll need to prepare your Packing and Shipping workspace. A spare room, a basement or a garage usually work best, but many people do this right in their living rooms. :o) You'll need:
∑ Some kind of organized shelving, where you can place your products and label the shelves with the product names and stock numbers
∑ Shipping materials, like properly sized boxes, shipping bags, shipping tape, some bubble-wrap plastic or Styrofoam "peanuts", etc. Your Wholesale Supplier will be able to give you the sizes of the shipping boxes or bags you'll need to ship each individual product.
∑ An Inbox and an Outbox, or something similar, so you can physically keep track of which orders still need to be filled, and which are already done.
∑ A Shipping Label Printer. The best way to go here is to contact UPS (at UPS.com) and set up a "Daily Pickup" Shipping Account with them. When you do that, they will supply you with FREE "UPS Worldship" software for your computer. Is this still in effect or is there a better method? †That software actually connects to UPS over the Internet, and calculates your shipping costs for each item you send. You can ship by UPS Ground, Air, Overnight, any way your customer wants to pay for. It also keeps a record of your shipments, your Tracking Numbers, and much more. It prints all your official UPS Shipping Labels, too, so that all you have to do is slap that label on your package, and you're done! UPS will "rent" you a Shipping Label Printer for only about $4 a month, and provide you with all the FREE shipping labels and other supplies you need for that printer. Setting up a UPS account is cheap, and it really saves you a great deal of hassle. However, you can always print the label directly from your printer and use wide clear packing tape to adhere it to your package.
3. After you do some Market Research (also provided with the Worldwide Brands product sourcing tool as explained in a later Chapter) you decide which products you want to sell Online, and place an order for those products.
4. The cases of products arrive at your home. The first thing you need to do is inspect those products! Open the cases, and take all the products out. Do a quick inspection for signs of obviously broken or damaged products. Damaged products are rare, but you do need to find out right away if all the products you have are in good shape. If you do find one or two that are damaged, the sooner you tell your Wholesaler, the better. They will work out a replacement arrangement for you that won't cost you anything.
5. Alternatively, you can choose to use a Fulfillment Center instead of warehousing products in your home, or at your own warehouse. Fulfillment Centers exist all across he US and around the world. They act as shared warehouses that lots of small businesses can use. When you use a Fulfillment Center, you have your products shipped there directly from your wholesaler, and the Fulfillment Center stores them for you. They connect to your web site with their software. Whenever your site gets an order, they get notified automatically, and they ship your product from their shelves right to your customer. This usually isnít any more expensive than the shipping and handling you would charge your customer anyway, so it becomes virtually a free warehousing system for your business!
6. Place images and descriptions †on your Internet Store or Auctions, and you're ready to go!
Remember that when you're shipping products to your customers yourself, you should never let more than 48 hours go by before you ship each product. Customer Service is very important in your Home-based Internet Business; you need to be sure to keep your customers happy!
A word about Large Volume Wholesalers
I've mentioned Large Volume Wholesalers as being an important part of that critical Multiple Product Sourcing Method strategy, so let's talk about them for a minute. At Worldwide Brands, we use the term "Large Volume Wholesaler" to describe a wholesale company that does not drop ship OR "light bulk" wholesale. Rather, they are companies that we have investigated and found to be legitimate wholesalers who sell in larger bulk quantities, but are willing to make deals with you on an individual basis.
Large Volume Wholesalers are VERY important to your overall product sourcing. If you'll remember from an earlier Chapter, Jay Smith wanted to place some inexpensive accessories on his web site that he knew were going to sell well. In the case of the actual person that the Jay Smith story is based on, he invested some of his profits in buying a slightly larger bulk quantity of these products, and the rest is history. Those products paid for themselves and earned a profit, he reinvested in more, and so on.
It's also important to realize that if you deal DIRECTLY with REAL Drop Shippers and Light Bulk Wholesalers, THEY are all actually General Wholesalers as well. They're General Wholesalers who are ALSO willing to Drop Ship and sell in Light Bulk Quantities, that's all. They will all be happy to give you better price breaks if you buy larger quantity from them to round out a product line that sells well for you.