Starting A Wholesale Business: 5 Crucial Factors To ...

Starting a wholesale business can be both scary and exciting. You may have a great idea in mind, but if you have little experience with e-commerce or wholesaling, you might be feeling a bit lost.

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Fortunately, online wholesaling is relatively straightforward. As long as you carefully consider a few key factors like profit margins, shipping, and suppliers, you can set up a solid business with lots of growth potential.

In this post, we&#;ll explain the basics of wholesaling. Then, we&#;ll go over five essential factors to consider when starting a wholesale business. Finally, we&#;ll show you how Wholesale Suite can make launching and running your store a breeze. Let&#;s get started!

A Brief Overview Of Wholesale Businesses

Wholesale businesses sell products in large volumes at a discounted price. These sales can be made to businesses such as retailers or individual buyers. This differs from standard retail companies, which sell items in small quantities at full price to end consumers.

Thus, one of the main reasons starting a wholesale business may be preferable is that it allows you to sell more products. This results in a much higher average order value compared to traditional retail.

A wholesale business can sell more products (click to zoom)

Another benefit of wholesaling is that customers tend to be very loyal, especially if you offer a high-quality product and excellent customer service. Since repeat customers are so common, this means you likely won&#;t need to put as much effort into marketing.

While there are tons of benefits to wholesaling, there are a few downsides. Primarily, you&#;ll need to consider where to store all your products. Since you&#;ll be selling in bulk, you&#;ll need a lot of stock.

Online wholesalers can avoid this issue entirely by opting for dropshipping. However, if you&#;re starting a wholesale business with a physical location, you&#;ll likely need a lot of space.

5 Key Factors To Consider When Starting A Wholesale Business

Now that you know a bit more about wholesale businesses and why you may want to start one, let&#;s take a look at five key factors to consider before you do.

1. Know your profit margins

Your profit margin (or profitability) is the percentage of revenue that isn&#;t spent on business costs. This cost/revenue ratio demonstrates how well a business is achieving its objective of making money.

Profit margins are arguably the single most important factor for businesses, especially for those that sell wholesale products. This number is an excellent measure of the amount of money you earn, but once you know it, it can also help you set prices, identify goals, and plan ahead.

Understanding your ideal profit margin can help ensure you are ordering stock in the most cost-effective way possible. If you&#;d like some help finding this number, you can use a simple profit margin calculator to give you a sense of your projected costs versus revenue.

A profit margin calculator can help you determine your profitability (click to zoom)

Then, you can consider whether your business is producing enough profit to satisfy your needs as the owner. If this is not the case, you should probably take a look at ways to improve your profit margins. Usually, the most effective way of doing this is to reduce expenses. A healthy profit margin for a small business is typically 7-10 percent.

2. Shipping considerations when starting a wholesale business

As a wholesale business, it&#;s crucial that you get orders to customers as quickly as possible without risking damage to the items. If you fail to get shipping right, there&#;s a strong possibility that you&#;ll lose customers and have to deal with a lot of complaints.

Some of the most common issues when shipping orders to customers are lost items, delays, and damaged goods. While you may not have direct control over most of these issues, there are ways you can help mitigate them. 

For example, you&#;d be wise to research your options and select a quality shipping company, rather than choosing the cheapest option. Even though it may be frustrating to have to charge more for shipping, keeping your customers happy is likely worth it.

It may also be a good idea to invest in durable packaging options. Again, this may add to your expenses, but it&#;s probably a worthwhile investment if you can afford it. Even the best shipping providers damage packages at times, so improving the durability of your initial packaging can help reduce this as well.

Another way to keep customers satisfied with shipping is to give them the option to choose a provider and delivery method. This somewhat takes the responsibility out of your hands and gives customers the ability to choose the provider that they prefer.

3. Wholesale and trade pricing

Similar to profit margins, pricing is part of your business&#;s core objective of making money. Setting optimal prices is vital for achieving as many sales as possible.

To help you set prices for your business, Wholesale Suite has made a free wholesale price calculator. It&#;s a simple-to-use spreadsheet that lets you enter a few metrics to find the best price for your market:

A wholesale price calculator can make it easier to determine pricing (click to zoom)

The tool has three options of wholesale price setting strategies. One method is to simply add markup based on your desired profit margins. This is called &#;cost-based pricing.&#; It can be a good choice if your product is in high demand and you&#;re confident you can make plenty of sales regardless of the price.

You could also use the &#;guess-work pricing&#; method, which lets you find the wholesale price by looking at an estimation of the desired retail price. This technique offers good value to the customer, but may not be consistent with your financial needs.

The final pricing option is &#;value-based pricing.&#; This requires a bit more research and considers multiple factors. This makes it the most reliable of the three options. To calculate wholesale prices with this method, you&#;ll need to know the average retail price, customer retail price, cost price, and more.

4. Inventory and warehousing considerations when starting a wholesale business

Inventory refers to all the items your business owns, including any property, products ready for delivery, and raw materials. As a wholesale business, your inventory mainly consists of products that are yet to be shipped off to customers. The most common way to store these items is in a warehouse, which is simply a building used solely for storing goods.

While warehousing is an excellent strategy for those who can make a large capital investment, many new wholesalers don&#;t have this option. If this is the case, you&#;ll need to consider alternative options for storing inventory.

Dropshipping has become a popular alternative in recent years. This involves storing goods with either the manufacturer or a third-party provider who then ships orders directly to customers. This is a much more cost-effective solution. However, it often sacrifices the quality and efficiency of deliveries.

Another option is to store inventory in your home. This is usually out of the equation for larger companies, but if you&#;re a small business that has a spare garage or shed on your property, you could distribute orders from there.

5. Suppliers

As a wholesaler, you probably don&#;t plan to manufacture your goods. Therefore, suppliers will be providing you with your product. If you want your business to succeed, it&#;s crucial that you work with high-quality suppliers only.

Depending on your store&#;s catalog, you might work with just one or a handful of suppliers. However, it might be wise to limit your suppliers. This way, you don&#;t have to juggle too many professional relationships and you can establish a sense of trust.

Naturally, you&#;ll want to consider whether a supplier&#;s rates will work well with your budget. However, if you are dealing with luxury products, you might want to make sure your suppliers are working with only the best raw materials.

Either way, you&#;ll want to maintain a good level of communication with all of your suppliers. Ultimately, they have a huge impact on your customers&#; level of satisfaction.

Wholesale business success depends on having reliable suppliers (click to zoom)

You might even consider using a service that allows you to find pre-vetted suppliers in a directory list, like SaleHoo.

However, keep in mind that if you&#;re unhappy with your supplier, you can always find a new one. While this may be tricky, it will likely be worth it in the long run. If you need to leave a particular supplier at any point, just make sure you have enough inventory to fulfill current orders. You&#;ll also need to update your product list right away so you aren&#;t advertising products you can no longer provide.

Starting A Wholesale Business The Easy Way With Wholesale Suite

Conducting all of your business online can make your wholesaling experience even better. This way, you won&#;t have to deal with the added stress of managing a brick-and-mortar location. If you know you&#;d like to stick to the web, you&#;ll likely need top-notch business management software.

You may want to consider using our plugin, Wholesale Suite. This is a WooCommerce-compatible tool that enables you to manage your online wholesale business from your WordPress dashboard. In a nutshell, it allows you to streamline your wholesale business processes with ease:

Wholesale Suite lets you easily streamline wholesale business processes

One of Wholesale Suite&#;s main features is its sophisticated pricing management tool. It lets you set multiple levels of wholesale discounts, bulk pricing, and more. The plugin also allows you to easily create minimum purchase rules based on quantities or subtotals.

To get started using Wholesale Suite, you can head over to the pricing page and select the bundle that best suits your needs. Follow the prompts to create your account and get the plugin installed on your WordPress site.

Then, you can begin creating your wholesale business or simplifying your pre-existing operations and procedures. We recommend you start by optimizing some of the factors we discussed earlier in this article, such as pricing and shipping. After that, you can move on to scaling your business further with features like lead capture and user-friendly order forms.

Conclusion

Launching a wholesale company can be intimidating at first. However, it&#;s a profitable business model that&#;s likely worth your time. Moreover, with the right tools, you can create your online wholesale store quickly and affordably.

To review, here are five important factors to consider when starting a wholesale business:

1. Profit margins: Calculate your desired profit margin to help you manage costs.
2. Shipping: Research the best shipping company and offer customers flexible delivery options to ensure orders arrive quickly and undamaged.
3. Pricing: Establish pricing using the cost-based, value-based, or guess-work model.
4. Inventory and warehousing: Depending on your needs, decide whether warehousing or dropshipping is best for you.
5. Suppliers: Choose reliable suppliers that produce high quality products at an affordable price.

Do you have any questions about starting a wholesale business? Let us know in the comments section below!

Have you ever noticed that Costco and BJ&#;s Wholesale stores sell most, if not all, of their items in bulk?

Have you also noticed that their bulk items are priced better than buying the same number of products one by one? This same concept applies in the custom apparel industry. Let&#;s talk about the power of buying t-shirts in bulk for screen printing!

Forget about the hassle of reordering your custom apparel t-shirts and say hello to one large order that solves all your custom apparel problems. Ordering custom apparel t-shirts in bulk can benefit your business by providing you with more inventory, less stress, and better savings.

These are three essentials you need when running a large business. We know this is the best deal you can get when it comes to ordering custom t-shirts and limiting any financial stress.

Let&#;s talk about why bulk is better, the specific benefits that come with ordering in bulk, and some extras you receive when you order with Scrappy Apparel. We want you to be stress-free because that&#;s the Scrappy way.

To Order in Bulk or to Not Order in Bulk&#; That is the Question.

Whether you&#;re looking to outfit your entire team or just want to stock up on some stylish swag, ordering t-shirts in bulk is always a good idea.

Not only will you save money on the cost per shirt, but you&#;ll also get the added benefit of having a few extras on hand in case of spills, accidents, rips, or new additions to your team. If that isn&#;t enough to get you excited, let us remind you of the time you&#;ll save with a bulk order. Totally amazing, right? After all, time is something we all need more of.

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So, why does ordering in bulk come at a lower price than ordering individually? Well, in terms of custom apparel, there are two things you need to keep in mind: price per unit and total cost.

The price per unit is the cost of each individual shirt, while the total cost is the cost of all the t-shirts in the bundle. When you order t-shirts in bulk for screen printing, you&#;re able to get a lower price per unit when you buy more t-shirts at once.

When you don&#;t order in bulk, you get stuck in the endless cycle of placing another order, paying the not-discounted price again, and waiting for the t-shirts to arrive.

We think it&#;s safe for us to assume that as a high executive, team owner, organization leader, etc., you have more important tasks on your plate than reordering t-shirts every few months.

If you know you&#;ll need the shirts, your best bet is to order them in one batch. Of course, you will need a trustworthy custom apparel partner to make your screen printing dreams come true. (More on that later.)

Let&#;s Bulk Up on Benefits

At the end of the day, we want to make sure you learn why bulk is better, but we also want you to believe it! Here are just a few of the wins you&#;ll get when you order t-shirts in bulk for screen printing (cause there are a lot of Ws and basically no Ls): 

Keep More Money in Your Pockets.

When you&#;re running a business, every dollar counts. 

One of the biggest benefits of ordering t-shirts in bulk for screen printing is that you&#;ll save money. When you order t-shirts in smaller quantities, you&#;ll end up paying more per shirt. Who wants to spend more money on fewer items? No one.

Buying t-shirts in bulk can often be cheaper than buying them individually, and you&#;ll end up with more t-shirts ready to go for all your needs. Plus, if you order them from the right place, you can often get bulk discounts that make the deal even sweeter. That&#;s the power of saving with bulk orders.

At Scrappy Apparel, we offer price breaks at different numbers of shirts. For example, if you order 10,000 shirts, your cost per shirt will be drastically lower than if you only ordered 100.

Want details? Grab your free quote and we will get back to you with an estimate within 24 business hours.

More T-shirts, Fewer Problems

Another great benefit of ordering t-shirts in bulk is that you&#;ll end up with more t-shirts! Kind of obvious, isn&#;t it?

Well, this is perfect if you need a lot of t-shirts for an event or if you just want to have a few extra on hand. With bulk orders, you can be sure that you&#;ll have enough t-shirts to meet your needs. More t-shirts = less reordering. That&#;s a big win!

Here&#;s a scenario for you:

Let&#;s say you sell t-shirts through your e-commerce store. As we know, e-commerce sales can fluctuate. You want to be prepared if your brand goes viral on social media or your sales skyrocket one month. Generally, if customers are ready to buy, you want to have inventory on hand (unless you are building demand through scarcity).

Ordering t-shirts in bulk for screen printing will help you ensure you have the inventory you need when your brand becomes a massive success.

Imperfections are Nonexistent

When you order your custom designs in bulk, you increase your chances of getting the same perfect shirt throughout the whole order. Since bulk orders are produced at once, all of your t-shirts will be nearly identical throughout the entire order, limiting imperfections. 

Imagine ordering some t-shirts and then having to order a few more because there weren&#;t enough. You risk the chance of the t-shirts looking different, even in the slightest. 

When it comes to ordering in bulk with Scrappy, we send you pre-production layouts to make sure that everything is perfect before we manufacture your order. Our Brand Building Process (BBP) ensures that your order will turn out exactly how you imagined it would. No misprints. No missed details. No mistakes. We don&#;t skimp on quality!

Time is Money, People!

When you order t-shirts in bulk, you&#;ll save time too! As we know, time is money.

Ordering in small quantities can be time-consuming, especially if you&#;re trying to find the right shirt for each person. Every time you order, you have to pay again. You&#;ll also likely have to go through the entire ordering and approval process again. It&#;s not as simple as reordering the same batch of t-shirts in a few clicks.

Not only are you losing time, but you&#;re also losing money, and that&#;s a lose-lose. When you order in bulk, all you have to do is choose the t-shirt&#;s style and color and then place your order. It&#;s quick and easy, and there is no need to repeat it!

Fast and Free Shipping

We can&#;t speak for other companies, but when it comes to Scrappy Apparel (the best custom apparel company), you are guaranteed free shipping&#;every time. Your bulk order gets sent to your doorstep quickly and free of charge!

Deadlines are important to us (and if you&#;re running a business, we assume they are crucial for you too). That&#;s why we never miss deadlines. You can count on your order arriving at your doorstep on time, every single time.

If you&#;ve worked with custom apparel companies before, you may have heard excuse after excuse as to why your order won&#;t arrive on time. With us, you&#;ll never have to worry about that because your satisfaction is our top priority. Our turnaround times are 100% accurate, and you can count on your order to arrive by the delivery date.

Scrappy Apparel&#;s Fulfillment Services

Now that you&#;ve seen why ordering t-shirts in bulk is your best choice, we want to make your dream bulk order a reality with our amazing fulfillment services!

We work with a lot of the leading eCommerce fulfillment provider, to offer you full-service fulfillment: picking, packing, shipping, and storing your products.

If you have an eCommerce store, you may not want to worry about managing inventory and shipping products yourself. You can count on our team and partner to fulfill your customers&#; orders with speed, accuracy, and utmost care.

Here&#;s the breakdown of what we can offer you:

1. You Can Focus on Your Business, Not on Inventory Management.

Managing inventory is hard work. It&#;s time-consuming, and if you don&#;t know what you&#;re doing, it can be expensive, too. When you use our fulfillment services, you can free up your time and money to focus on what you&#;re good at: running your business.

Your products will be stored in a safe, temperature-controlled environment, and our team will handle all the picking, packing, and shipping. After all, you have a brand to build! Stay in your zone of genius while we handle the fulfillment logistics for you.

2. You&#;ll Save Time and Money on Shipping and Delivery.

If you pack and ship every order yourself, it can take a lot of time (and money). With our fulfillment services, we&#;ll handle all of the packaging and shipping for you so you don&#;t have to worry about each individual shipping expense. We&#;ll even deliver the orders to your customers&#; doorsteps. This means that you can focus on other aspects of your business, and leave the fulfillment to us.

Our delivery services are fast, reliable, and affordable. We&#;ll make sure that your customers receive their orders on time, every time. Plus, our services are scalable, so you can easily adjust as your business grows.

3. You Can Scale Your Business Easily with a Fulfillment Service.

Do you have your eyes set on enterprise-level goals? If you want to achieve big things with your small business, you need a fulfillment solution that can grow with you.

Scalability is key when you&#;re looking for a third-party logistics (3PL) provider. You need to partner with a company that has the resources and infrastructure in place to support your future growth.

Our fulfillment services are the perfect solution for businesses looking to scale. We have a world-class fulfillment center that is equipped to handle any volume of orders. Whether you&#;re shipping a few orders a week or a few thousand orders a day, we can handle it.

Plus, our fulfillment services are backed by our team of experts. Our team is here to help you every step of the way. We&#;ll work with you to ensure that your orders are fulfilled accurately and on time, every time.

4. You Can Spend More Time on What Matters Most in Your Business.

When you outsource your fulfillment to Scrappy Apparel, you can focus on the more important tasks in your business. That might mean spending more time on product development, marketing, or sales. It could also mean that you have more time to spend with your family and friends (because work-life balance matters too!)

5. You Can Improve Customer Satisfaction.

Outsourcing your fulfillment to Scrappy Apparel can also improve customer satisfaction. That&#;s because we are committed to providing the best possible experience for your customers. If there are any issues with an order, we will work quickly to resolve them. We&#;re on your side!

Our Fulfillment Partner

Scrappy Apparel works with tons of fulfillment companies that provide end-to-end order fulfillment services that are second to none. They have a team of experts who are passionate about products being delivered on time and in perfect condition. They are comprehensive and understand the importance of customer satisfaction, going above and beyond to make sure you&#;re happy with our service. Sounds like the perfect fit for us, right?

Services Include:

• e-Commerce fulfillment

• Subscription & batch fulfillment 

• Physical media

• Kitting and assembly

• And more!

Ordering T-shirts in Bulk for Screen Printing is the Best Choice

Whether you want to save time, money, stress, or all of the above, ordering in bulk is the right answer! Don&#;t fail yourself and your pockets, order your next set of amazing custom t-shirts in bulk for you and the whole gang. 

When you&#;re ready, click below to get your free estimate. On top of bulk savings, we give you free estimates. We know. We&#;re just the best!

Ready to place your bulk screen printing order?

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