Working from home in the wholesaling business requires the business owner to work in the middle as a liaison; between either a manufacturer or a large distributer and the customer. Before entering into this venture, it is imperative to understand the answer to the question,"What is wholesaling?"
For the home business operator, wholesaling is connecting or finding a way to get merchandise to the retail setting. Obviously, the home is not a place to store purchased goods with the idea of reselling them to a store owner. Rather, the home is a place to find a way for the products to be delivered directly from the source to the retailer.
How Does it Work?
The basic concept is this; retailers are already overloaded with the daily tasks of operating their businesses. Creating a point of sale with products at the best price requires a great deal of time and effort, along with continuous and ongoing research. For this reason, many retail establishments are willing to pay another person or firm to find sources for their products.
The fee for the wholesaler could be reasonably set at 7% of the total initial order and for repeat orders. For every $1,000 of product ordered, the working at home wholesaler could expect to earn $70. This would be a compatible arrangement with benefits for both the home wholesaler and the retail provider.
What Needs to be Done?
- Do the legwork. Contact local retailers and introduce your business plan to find suppliers for them. The added value you bring will be the guarantee of finding the products they want and need at low enough prices; enough to generate a profit for them and a fair finder's fee for you.
- Be prepared to spend many hours on the computer and on the phone finding the manufacturers and/or large distributers who can deliver the products at the right price.
- Return to the retailer with a professional price list with all of the information needed to get the goods directly to the store or business. Timelines, shipping costs, and all details need to be presented as well.
- After an agreement is secured, the next step is to make the arrangements with the manufacturer or the distributer to have to products shipped to their destination in the appropriate time frame.
- The retailer pays for the products plus the commission, and the home wholesaler pays the supplier, which saves the customer the hassle of dealing with the supplier on any level.
Ways to Secure Jobs
- Advertise your business in the local newspaper and in specific industry publications such those geared toward giftware, for example.
- Create an eye-catching brochure and distribute it to every possible customer.
- Advertise on-line.
- Visit local retailers with a strong sales pitch.
- Set-up a booth at merchandising shows and trade fairs.
- Ask for referrals from satisfied customers.
- Create a website.
- Send emails to potential customers.
- Be readily available for consultations with customers.
The simplest way to describe this work from home business of wholesaling is that of a professional shopper's service. The business owner acting as a wholesaler finds and delivers products, and the business client receives the products while enjoying the convenience and cost benefits of your service (in exchange for an administrative fee). Women, in particular, are suited for this type of work because women do most of the buying of goods in the United States; they are responsible for $2.3 trillion in annual sales. Wholesaling, therefore, is an ideal job for a WAHM.