A Guide to Successful Dropshipping
Being a successful wholesaler depends on many different factors. You need to be able to reliably receive inventory from manufacturers and suppliers. You need to properly market your products to retailers to ensure that you move your inventory. You need strong customer service and reliable shipping options. However, the most important thing that you need in order to be a successful wholesaler is a good product. Finding the right product that sells well is a manner of strong market research and the ability to spot trends. Market testing for wholesale can mean the difference between a successful wholesale business and an unsuccessful one.
Finding a niche to exploit for wholesaling can be very lucrative. This is where market research and product testing come into play. Look for a segment of the market that you think is not having its needs met. Is there a new fashion that is becoming popular for one segment of society? Are certain types of jewelry popular? Is there a new must-have electronic gadget that is out?
It should be noted that just because you have identified a niche does not mean that your products will be successful there. It could be possible that another company is there first. This is where you need to test your products on the market. Start small and have only a few retailers sell your products. If they are successful you can then expand. By starting small when testing products for wholesale, you are not committing yourself to ordering a large inventory. This ensures that you do not overbuy.
eBay is a great place to test products for their wholesale potential. You do not need to stock a large inventory of products and anyone can sell products on eBay.
Try to sell several varied products and gauge their success or failure. For example, if it seems like one type of woman's sandal is selling better than others, concentrate your efforts on selling that type of sandal. Once the product does not sell as well, you can easily move on to a more successful one.
If your wholesale business has operated for a while, chances are you will have repeat customers. Ask your retailers what they think is going to be a successful product. Try to get information from your retailers' customers to see what they want. Be in touch with your customers when testing for wholesale potential and you should be successful.