Before you place bulk orders on wholesale, you need to be aware of the drawbacks. Of course, you think of profitable deals, when you make wholesale purchases. But if you are not smart enough, things can go wrong and can lead to LOSS! Yes, you might see some sales initially after the order arrives. But you never know if it starts to get slow or the price begins to tank. Nobody will want his/her bulk order to end up in a massive failure. You can turn this failure into a learning experience. But you won’t ever want to meet such an epic financial disaster. Will you?
It is always better to be safe than sorry. That is why here are some biggest mistakes that you should avoid while making bulk orders on wholesale.
Ordering too many stuff
Don’t buy a bulk that takes forever to sell. Make small bulk orders. Don’t be in the cloud while making wholesale purchases. Anytime you are trying something new, don’t jump into the deep. Instead, first, get an assumption and then proceed accordingly.
Investing way too much money
Every wholesale supplier has got what they call the Minimum Opening Order. While dealing with a wholesale supplier, be sure about not going too far above the minimum. Make orders that will meet your expectation. Once you get successful in your first order, go for making further orders.
Not making smart orders on time-sensitive goods
When you order time-sensitive items that focus around a specific season, you need to sell these items quickly. Only then your wholesale orders will be successful. Otherwise, when the season is over, you will have to lower the price, pay long term storage, etc.
Trying to negotiate for having a better deal on the first order is not always the best way to introduce you to a supplier. Still, do bargain for a better deal.
Making faulty assumptions
Incorrect assumptions can cost you both time and money. While making first orders, don’t be too proud or afraid to ask questions. It will help you make an informed decision.
Not realizing the difference between a manufacturer and a distributor
When you buy items from a manufacturer, you directly buy it from the maker of the product. On the other flip, when you purchase from a wholesale distributor, the scenario is different. Here you’re dealing with a middle-man who is taking his cut of the profit. You might have to pay more in that case.
While looking for a wholesale supplier, search online. Visit different websites to check, compare and find a trusted supplier.