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Wholesale

What Is Wholesale?

Wholesale eCommerce involves the selling of merchandise in masses to another online business, usually at a discounted price, compared to selling directly to the consumer. Typically, you buy merchandise from manufacturers and resell them to online retailers, who can repackage or rebrand them before selling to the end-user. 

How B2B Wholesale Works

In order to know how to buy wholesale to resell, it will help you understand how the process works from the start to the finish. A wholesaler approaches manufacturers and buys merchandise in masses, usually at a lower price because they are not yet packaged.

The wholesaler will then market these merchandise to other retailers and sell them at discounted rates. The online retailer will then sell to the end-user at a relatively higher price. However, it’s worth noting that wholesalers can still produce products in small quantities for consumers.

TOP B2B Wholesale Marketplaces

If you already know where to buy wholesale products, you’d also want to know the right marketplace for reaching out to the end-user. Here are the top 5 B2B wholesale marketplaces:

Amazon

This marketplace allows wholesalers to buy from thousands of manufacturers and resell to consumers. The platform is easy to use as it only works with established brands that have an existing demand.

Alibaba

Alibaba features manufacturers that produce at lower costs, hence able to sell to wholesalers at relatively affordable rates. Moreover, the marketplace gives wholesalers greater control over final product packaging.

Rakuten

Wholesalers who buy from manufacturers on the Rakuten marketplace have the ultimate control of their storefront design, product page design, or even customer experience. In other words, you buy and sell as you want.

GlobalSources

This platform exists as an app, which connects global wholesalers to Chinese manufacturers and other reputable B2B vendors. Wholesalers can then buy from these people at discounted prices before reselling the products.

TradeKey

TradeKey has over 9 million global members, making it one of the most active B2B wholesale platforms in the industry.

What’s The Difference Between Wholesale And Retail?

As mentioned earlier, a wholesale transaction deals with online stores — selling merchandise to online retailers at a discounted price. On the other hand, a retail transaction involves selling merchandise directly to the end-user, usually in small quantities.

What Is The Average Wholesale To Retail Markup?

The average wholesale to retail markup for many brands is about 30% to 50%. Profit margins within this range are considered sustainable since the merchandise are usually sold in masses.

 

RELATED TERMS

Frequently Asked Questions About Wholesale

How to buy wholesale to resell?

As a wholesaler, you have two options, of either working with a local or overseas manufacturer. After that, you can test and verify the manufactured products before marketing the same to retailers in your region.

How to start a clothing business with buying wholesale?

Here is the process:

  • Prepare legal documentation for your business;
  • Find a suitable clothing niche;
  • Get in touch with a supplier;
  • Place your first order.

What is wholesale price?

Wholesale price is a price tag for a product when sold in masses, usually to an online wholesaler.

Where to buy wholesale products?

Are you looking for where to buy wholesale products? A good B2B wholesale platform, such as AmazonBusiness or Alibaba will connect you to thousands of business-ready manufacturers.

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