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What are Wholesale Products?
When you think of "Wholesale Products" you think of the rock-bottom cheapest prices you would pay for a product, after all, that is essentially what wholesale means right? As a new online seller you have to make sure that you are getting the absolute best possible price for the products you want to sell or you won't make any money online.
The term "wholesale product" refers to the pricing of a product before Retailers mark it up for selling to the public. It's the price set by Manufacturers and Wholesale Distributors. It's a price just above the cost of what it takes them to make and/or distribute the product to Retailers.
Understanding Wholesale Product Prices
Certified Wholesalers (real wholesalers) set their wholesale prices based on two factors. First, they consider the manufacturing and distribution costs. They have to be able to cover the cost of creating the product, warehousing it and ship it out to Retailers while still making enough money to cover their own overhead expenses.
Next, they take into consideration the quanitity that is being ordered from the Retailer. This is often something that confuses new online sellers who use drop shipping. Understand that when dealing with wholesale products, the more quanitity the Retailer orders the more discounts they will get.
Here's an EXAMPLE of a typical Wholesale Product pricing structure:
The wholesale price you pay for a wholesale product will depend on the amount you order from the wholesale supplier. This is why picking the right products to sell in your online store or auction is critical if you plan to use dropshipping. In order to profit with dropshipping you must pick a wholesale product niche that isn't saturated with companies buying wholesale products in large volume who, with their additional wholesale volume discounts, are able to offer the product at a cheaper sales price than retailers who are having it drop shipped.
Finding Wholesale Products to sell
When you see the term "wholesale" you instantly think that the price for that product is the cheapest price you can get. Many scammers use this term to trick new retailers into thinking they are getting wholesale. The ONLY way to get true wholesale prices is to get the product directly from a Certified Product Wholesaler. That is why we have spent years visiting tradeshows, visiting wholesalers and finding genuine wholesalers who will work with new online sellers. It's not easy, but after over a decade we have collected the internet's largest, most comprehensive Directory of Certified Wholesalers you can find anywhere...and we add new Certified Wholesalers daily!
If you want to try to find Certified Wholesalers on your own, be sure to visit our Scam Watch page for tips on how to identify the current online wholesale product scams.
You may also be interested in:
The Best Wholesale Products Come from WBI Certifiedtm Wholesalers: Take a quick look at how we locate genuine certified wholesalers for online sellers who work from home.
Wholesale Tips Videos: These Free videos, hosted by our CEO Chris Malta, covers the top wholesale questions asked by new online sellers interested in working with wholesale distributors. Simply click the link if you would like to watch them now on our site.
The Critical Role of Wholesale Products: (Site Article, Opens below)