How to open a wholesale company. Talking about Wholesale Trading - Tips for a Beginner

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Wholesale business from scratch (intermediary model)

I will very briefly tell you how you can create a wholesale business from scratch and earn your first serious money.

Generally speaking, a wholesale business can help you earn good money without even leaving your own home. Starting a wholesale business can make you money fast and big.

The standard scheme by which the wholesale business operates is known: due to the fact that you buy goods in bulk, these goods cost you much less. Then you can sell these goods in bulk, but at a higher price. Or you can sell these products at retail and at a much higher price.

You might think that to start a wholesale business you will definitely need money, at least for the first batch of goods. And since we buy in bulk, this means that this will require a whole mountain, or maybe several carloads of money. No! The beauty of a wholesale business is that it can be done with absolutely no start-up capital (not counting minor expenses).

To be honest, wholesale is a relatively simple business, its huge advantage is that success in this business can be completely copied from another wholesale business.

What are the advantages of a wholesale business in general?

1. Wholesale business is serious business. Large volumes are involved here, which means big money. But the coolest thing is that the wholesale business scheme is simple for beginners.
Simply, beginners start with small volumes, and when they realize that they are ready for a big swim (primarily psychologically), they increase their momentum. A pleasant surprise awaits wholesalers when they realize that in order to get 10 times more money they need to sell not 1 bag of potatoes, but 10. But the amount of time spent on 1 bag and 10 bags is approximately the same. This is how people turn from beginners into entrepreneurs with money.

2. When doing a wholesale business, you can concentrate entirely on one product or one niche. This is much easier than dealing with the huge assortment of a retail outlet, for example. The more expertise you have, the better you do.

3. The wholesale business scheme is simple and accessible to everyone, even those who have no experience.

4. It’s quite easy to copy a successful wholesale business model. All for the same reason - the scheme is simple and transparent.

5. No large initial investment required.

6. Initially, a wholesale business does not require much time investment, so until you are sure that your business will bring you money, you can remain in your hired job without risking anything.

How to start wholesale trading

Starting a wholesale business is much easier than you think!

Here are two main scenarios:

You buy or sell a product and sell it at a higher price, making a profit from it.
You find a buyer for the product and organize the purchase and sale process. After this, the supplier pays you a commission for the completed transaction. But you need to agree on this in advance with the supplier and conclude an agency agreement with him.

The first option is the classic model, which is used by large players in the wholesale market. As you understand, to start you need quite serious financial resources, warehouse space and personnel.

The second option is the so-called intermediary model, widely used in small businesses. This is where I recommend starting.

Here are its advantages:

No initial investment is required to purchase the product.
There is no need to open an individual entrepreneur or LLC. You can work as a physical worker. person under the contract.
You don't need a warehouse or employees.

A wholesale business can be launched entirely online, without having an office, employees, or even ever meeting your suppliers and customers. This means you can start a wholesale business quickly, easily and with virtually no investment.

The business of selling any goods is a fairly popular form of earning money. Of course, you will have enormous competition in this area, but if you are successful, the profits can be simply huge. By the way, it is wholesale sales that bring the maximum income, so starting your business with them would be a very good option.

Features of the wholesale trade business

Some of the ways in which wholesale sales differ from retail sales include:

no need for large enough areas to store goods. Although to fulfill this condition, you will need to properly organize a transaction in which you will be an intermediary between the seller and the buyer of the goods. Your profit (minus transportation costs and possibly short shelf life) will be the difference between the wholesale and retail prices for certain products. So, if you do not have intermediary skills, you will still need space for storing goods;
the presence of regular suppliers and regular customers. This criterion is optional, but if it is present, your profits will increase, and the payback period of the enterprise will decrease.

Where to begin

Before you open a wholesale trade business, you should decide on the type of product you are going to sell. Each of them will require its own level of investment and conditions, both for transportation and transportation. The ideal option would be to choose a product that you have already dealt with before or that you are well versed in. Although it is also worth considering the characteristics of your region - what is produced here and what is in greatest demand. It is advisable to engage in wholesale sales of goods that:

easy to transport;
sells equally well at any time of the year (that is, the demand for it is not seasonal);
produced close to your facility. This way you will reduce your transport costs.

Also, you can’t do without a truck, or even better, several. In principle, you don’t even have to buy them - you can rent or lease them. As for workers, at the initial stage you can use the professional services of loaders, and later create your own staff.

Sales of goods and payback of the enterprise

Knowing how to open a wholesale trade business, it’s worth figuring out how much profit you can get from it. It is impossible to say the exact amount here - after all, everything depends on your hard work, sales volumes, and initial investment. Typically, such a business pays for itself in less than a year. And if your activity consists of mediation, then you will begin to receive net profit immediately.

Wholesale trade also has pitfalls. Firstly, the volumes of goods are large, which means the risks are higher than in retail trade. Secondly, you will be heavily dependent on suppliers. However, the second point affects everyone who does not have their own production. But profits here can be several times higher than in retail trade, so it’s worth the risk.

If you decide to start your own business, then first of all you need to decide on the type of activity. Organizing a wholesale trade is a little easier than opening a stationary retail outlet.

For wholesale trading to be successful, you need to find reliable suppliers. You can purchase household goods on the website http://super-optovik.com.ua/. Products belonging to this group are always in demand and do not require special storage conditions.

Product selection

To choose an industry in which you will conduct wholesale trade, you need to evaluate your knowledge in this area. Perhaps you work as a sales manager for a large shoe company. You are familiar with this market and its features. This knowledge can be used to start your own business.

If you want to trade another product, you first need to carefully study the market, find out the specifics and find suppliers. To do this, you will need to find answers to the following questions:

What products are produced in your region. If the supplier is nearby, you save on delivery.
Study the demand for the product. For example, sugar will always sell in larger volumes than Chinese toys.
Try to choose a product whose sales are not affected by seasonality. Garlands and Christmas tree decorations are in demand on the eve of the New Year, and fishing gear sells better in the summer. Food, coffee and fruit are popular at any time of the year.
The need for special storage conditions. Perishable food products require refrigerators.
Difficulty in transportation. If you decide to sell porcelain or glassware, you must ensure their integrity during the delivery process.

By analyzing the market in your region, you can find the product that is in greatest demand all year round.

Most popular products

You can trade any product, but the following types of goods will be in greatest demand:

clothes and shoes. Regardless of the economic situation in the country, people will still need these goods;
household chemicals are in great demand. This category of goods can be combined with household goods;
flowers. Before the holidays, the number of sales increases significantly, but on weekdays bouquets remain a popular product;
stationery can be sold not only to stores. You can enter into an agreement for supply to offices, enterprises and even schools.

If you focus on the demand for the product, and not on the percentage of profit received, then you can earn much more. For example, mass produced clothing sells at lower prices but is purchased more often. Elite models are very expensive, but they are sold very rarely.

Where to start a business with China, starting from scratch and without investments? How to make money by reselling Chinese goods and what is better to sell? How to find suppliers and intermediaries?

Hello, dear friends! Welcome to the founder of HeatherBober magazine, Alexander Berezhnov!

It's no secret that many people made their first million by reselling goods from China.

In this article, I will reveal all the tricks about doing business with China from A to Z, analyze expert advice and consider the most effective and profitable business models.

For now, this niche is relatively free: if you decide to start your own business and don’t know what to choose, it’s time to turn your attention towards the East.

Let's get it in order, friends!

1. Business on goods from China - is it realistic to start your own business from scratch?

Chinese-made products account for a significant share of the entire world market. In Russia about 60-80% light industry goods are represented by Chinese consumer goods. Modern Chinese products are no longer as artisanal and low-quality as they were 20 years ago: products have become more functional and durable, and look much better.

Even if you have never been involved in sales and are familiar with Chinese goods only from a consumer point of view, no one and nothing can stop you from starting a business with China and acquiring a new (and very profitable) source of income.

In this area, you can earn from 50,000 rubles every month and at the same time have time for life and rest.

Today, only the lazy do not do business with China. Business with China for resale without investments (or almost without any) is relatively simple and accessible to everyone with basic knowledge and entrepreneurial skills. You don't need to be a graduate of a trade institute or business school to understand how things work in the market.

In essence, the scheme for working with China comes down to three points:

find goods in China as cheaply as possible;
deliver it to the Russian Federation;
sell at a premium.

Don’t rush to object “but what about customs, certificates, document flow, taxes?” Below we will consider this scheme and all related issues in more detail and detail. Exactly philistine skepticism - the main obstacle to any successful entrepreneurial activity.

The second obstacle is lack of necessary knowledge . With the advent of the Internet, information has become more accessible and practically free: an example of this is the article you are reading.

Trade is the most attractive field of activity for budding businessmen. This is much simpler than production: you just need to purchase goods from wholesale suppliers and sell them at retail prices. Learning to do business with China does not take much time, especially if a person has a desire and goal.

So, if you have this very goal and a great desire, then in just 6 weeks you can build a business on goods from China.

And my trusted expert in teaching this area will help you get started -.

I’m already implementing this guy’s tricks in my business and they really work.

2. Chinese manufacturers are more profitable than any other

The interest of Russian business in Chinese goods is steadily growing. China produces everything without which it is difficult to imagine the life of a modern person: clothes, cosmetics, accessories, household appliances, gadgets. Surely your apartment is full of things labeled “Made in China”.

Just 15-20 years ago, plastic Chinese products crumbled in the buyer’s hands; now the quality of goods from China is quite satisfactory, and sometimes even excellent. The stereotype “Chinese means short-lived and wretched” has almost lost its relevance. Even iPhones and other expensive brands are now produced in Chinese factories, since it is inexpensive due to cheaper labor.

This graph reflects the growth of trade relations between China and Russia in 2015-2016:

As you can see, the turnover is not small and it increases over time.

The quality of Chinese products is constantly growing, but prices (at least wholesale) remain low.

What conclusion can be drawn from these facts? Right: You can make good money by buying and reselling goods from the Middle Kingdom.

Wholesale supplies from China can become a reliable and constant source of profit.

Initial costs will be minimal if you use modern information technologies (meaning the Internet) in your business. There are already hundreds of companies operating on the market that act as intermediaries in the delivery of goods from the manufacturer to the consumer: why don’t you join the number of successful businessmen who receive stable incomes using a simple and understandable commercial scheme.

Advantages of doing business with China

Let's list the main advantages of working with China:

Low prices. When working with local (domestic) suppliers, the markup is usually 10-20% (in the most successful cases - 50%). Buying goods in China and selling them will bring you from 50% to 1000% markup. Cheap labor reduces production costs to a minimum.
Huge selection of goods. The range of Chinese goods is almost endless and limited only by your imagination. In China you can find absolutely everything, so you can fill your market niche with any goods you like - for example, an exclusive product that has no analogues on the local market.
The focus of Chinese sellers is solely on sales. Due to competition and dumping, the Chinese value every customer. They are in touch 24/7, you can start working with them from minimum quantities, bargain, request free samples and models, photos and descriptions, and assign favorable delivery conditions. An experienced buyer knows how to reduce the purchase price to a minimum and conclude the most profitable contract.
Possibility of purchasing exclusive goods. As your business progresses, you can move on to larger, more profitable deals. It is not necessary to work with intermediaries: you can establish direct contacts with the manufacturer and purchase goods from a specific brand that is poorly represented on the market.

Why is business with China profitable?

Firstly, due to the modern rhythm of life. The buyer today values his time: he will not spend it on ordering and delivering goods from China, it is easier for him to place an order with you.
Secondly, not everyone will understand the variety of sites offering goods from China.

To understand the functionality, check the integrity of the seller, and calculate the cost of the product taking into account delivery, you need skills and knowledge. Most people will prefer to turn to domestic intermediaries operating through websites with simple and understandable terms of cooperation.

It is much easier for an ordinary buyer to choose a product on a Russian-language website: they always have the opportunity to call the seller or discuss the terms of interaction and delivery.

3. How to start a business with China - 10 simple steps from A to Z

Let's move on to practice and learn how to start a business with China from the first step.

Step 1. Studying business models on goods from China

There are several proven and effective business models that you can use in the early stages of your entrepreneurial career:

dropshipping;
Joint purchases;
offline wholesale sales;
retail sales;
work through an online store.

Now in more detail about each business model.

1) Dropshipping

Dropshipping– a method that allows you to start a business with virtually no investment. The essence of this model is extremely simple: you receive money from buyers, and then transfer an application for this product to a third-party supplier, who sends it to the buyer.

You receive a percentage for mediation. The client does not even realize that he is purchasing the product from someone else.

Your goal is to attract customers, convince them to purchase goods from you. Commission fees for intermediaries with this business model range from 30 to 500%. Agree, not the lowest profit in the absence of initial costs. At the same time, you do not need to worry that the product you purchased will lie in the warehouse for months - you buy it only when you receive a specific order from the client, paying with his own money.

2) Joint purchases

Joint purchases- this is when several people join a group and buy goods from an official supplier.

The commercial idea of this event is to save money through wholesale purchasing. Another advantage of this option is reduced shipping costs. Typically, the cost of transporting goods from China is much higher than the price of the product itself.

We welcome you, dear users and visitors of the business magazine “site”! The topic of today’s publication is “Business with China.” We will tell you where to start, how to find and establish optimal mutually beneficial cooperation with partners (intermediaries), and also provide a list of popular Chinese trading platforms where you can purchase goods from China in bulk and consider the possibility of reselling goods without investment.

From the article you will learn:

Is it possible to start a business with China without initial capital?
Why choosing Chinese partners is beneficial for Russian entrepreneurs;
Step-by-step recommendations for organizing a business;
Advantages and disadvantages of the largest Chinese trading platforms (Aliexpress, Alibaba and others);
In-demand products from China that can make a lot of money.

More and more Russian and other entrepreneurs are turning their attention to China to make their activities more reliable, profitable and competitive.

Huge assortment manufactured products, as well as low prices with quality improving everywhere, they leave no choice for beginning and experienced entrepreneurs when identifying partners for cooperation.

After reading this article, businessmen of different levels will be able to familiarize themselves with the “rules of the game” in this market, even a beginner without initial capital, after reading the article to the end, will find an opportunity to earn money in cooperation with partners from China.

How and where to start your business with China, what are the advantages and benefits of a business reselling goods from China, is it possible to open a business without investment, and so on, read the article below

1. Business with China - is it possible to start a business with goods from China from scratch 📈

Products made in China occupy one of the leading positions in terms of sales and popularity in global markets. And if several decades ago Chinese products were introduced only in the niche of budget products Low quality , then at the moment the range has been expanded up to up to elite samples with the highest consumer properties.

Competitive prices, as well as a huge selection of various products provide entrepreneurs with wide opportunities to earn good money.

The process of interaction with China is not complicated, and every businessman with fundamental knowledge and entrepreneurial experience can successfully work in this market without an initial investment (or with minor investments).

General scheme of work with China:

searching for a cheap suitable product;
delivery to Russia;
selling and making a profit.

At the same time, many beginning entrepreneurs causes unnecessary anxiety customs clearance, product certification, taxation And a number of other related factors. However, having studied all the necessary information, businessmen should not have any difficulties when interacting with Chinese manufacturers and intermediaries.

☑ Delivery, customs clearance and certification of goods can also be entrusted to a third party.

Trade - the best option for starting a career in business, and having companies as partners that will help supply affordable and in-demand goods to Russia, provides unlimited opportunities for earning money and developing your business.

Business from scratch in this segment is very limited and involves the resale of goods through a dropshipping system. Read about this and much more further in the article.

2. Advantages and benefits of doing business with Chinese manufacturers 📑

In recent decades, there has been a trend of increasing attention of the Russian business community to the Chinese manufacturing market. Manufactured in this Asian country the entire list of goods necessary for a person to live.

Advantages and benefits of cooperation with Chinese manufacturers

For years, the stereotype formed by the average resident of the country that Chinese goods are of low quality is gradually being eliminated. An increasing number of buyers find themselves satisfied with the quality of products from China, with constant low price compared to competitors.

Even in the traditionally competitive high-tech market, where “they rule the roost” Western European, North American, South Korean and Japanese manufacturers, Chinese companies managed to occupy a significant market share. At the same time, the quality of manufactured goods is increasing.

The development of modern means of communication and technology will allow entrepreneurs to significantly reduce the initial costs of cooperation with Chinese manufacturers or intermediaries.

It is also worth noting that enterprises from China trade with countries around the world and constantly introduce new products to the market and use innovative ideas. By carefully studying the demand among the population and supply from China, the entrepreneur has the opportunity to be the first to introduce new products to the Russian market, which will significantly maximize profits.

The main advantages of doing business with China

The attractiveness of partnerships with Chinese manufacturers and intermediaries is determined by a number of factors:

Large range of products. China's share in most economic sectors is from 40% and more in relation to global production. This determines a significant variety of products.
Low prices. One of the main factors in the competitiveness of the Chinese economy. The low cost of goods is due to: relatively inexpensive labor, the presence in the country of virtually all types of necessary raw materials, the presence of a large number of production facilities for various components, as well as significant competition among enterprises. All this allows entrepreneur, supplying and selling goods from China, set the price for the goods at a profit up to 1000% and at the same time leaving the cost attractive for the buyer.
Purchasing an exclusive product. In the process of studying the specifics of the Chinese market, as well as with significant volumes of supplies, manufacturers of exclusive products that have significant demand, but are poorly represented in retail trade, may be interested in cooperation with a Russian company.
The desire of Chinese partners to cooperate. Great competition and price wars among Chinese manufacturers and intermediaries force them to be attentive to the needs of customers: start cooperation with small volumes of goods, provide discounts on samples, provide convenient conditions for the delivery of goods and other preferences.

Let's look at the main benefits of doing business with China:

First of all the consumer wants to receive the product as quickly as possible, as well as evaluate its appearance and quality. When purchasing goods to order in Chinese online stores, the buyer cannot take advantage of these advantages and many customers find it more convenient to buy goods from Russian sellers.
The second factor is a large number of Internet sites and products. It is difficult for the buyer to navigate and purchase the required quality product. To do this, you need to evaluate the professional qualities of the seller, take into account the cost and delivery time, and for this you need to have certain knowledge and experience. In this regard, a significant part of clients prefer to buy from Russian entrepreneurs.

To check the integrity of the seller, understand the functionality of the trading platform, calculate the cost of delivery and the product itself, knowledge and skills are required.

Many will want to order the necessary goods on a Russian-language website, since there is always the opportunity to call and clarify with the seller all the questions and nuances of purchasing the goods, negotiate the terms of delivery of the order, and so on.

Your own business with China - where and how to start your business with China

3. How to start a business with China - 10 stages of where to start your business 📝

In order to establish business in cooperation with Chinese partners, you should consider 10 simple steps (stages) for successfully launching a business resale of goods from China.

Stage 1. Analysis of the list of business cooperation models

Most Russian entrepreneurs cooperating with Chinese companies use a number of time-tested models of interaction with partners:

Wholesale sales of products;
Sales of products through an online store;
Dropshipping;
Own sales through a retail outlet;
Joint purchases of goods from China.

1. Wholesale sales of products (offline)

By establishing cooperation with Chinese partners, an entrepreneur has the opportunity to sell goods in bulk with significant profitability. The Chinese market provides a large list of various products, and choosing a product that is in demand will not be difficult for an entrepreneur.

The work algorithm includes a number of actions:

Selecting the optimal wholesale supplier;
Searching for retailers and establishing cooperation with them;
The client determines the assortment he needs, makes an advance payment, and the entrepreneur, purchasing the products, ensures delivery.

A businessman who has established supplies from China should not have much difficulty finding partners in Russia.

The only thing that would be advisable is to use additional communication opportunities via the World Wide Web: social media, notice boards, and also take advantage of a very effective way to promote products - contextual advertising.

Question 2. What to sell in an online store and which goods from China can provide maximum profit in the near future?

Many novice entrepreneurs ask themselves when starting a business in China: what to sell and who to sell their goods to?

In the foreseeable future, there are no countries that will be able to compete with China in terms of the range of products offered, as well as in price.

The country's industrial base is constantly grows and develops, constant subsidies help Chinese entrepreneurs improve the quality of their products and optimize costs.

At the same time, a significant level of competition ensures a fairly low price level.

Review of products sold from China

So, which Chinese goods can provide an entrepreneur with a high level of income?

1. Shoes and clothing

Products in this category are relevant at the moment and will always be in demand. In Russia, as in most countries of the world, for a significant part of the population the main factor when purchasing is price, and then everything else.

The cost of shoes and clothing from the Celestial Empire is lower than that of competitors with constantly improving quality and a large assortment of offers.

Another factor in the popularity of Chinese clothing and shoes is counterfeits of well-known brands. However, the quality of goods (as well as price) can vary significantly.

Many Russian consumers want to assert themselves by purchasing “ branded"thing for relatively little money.

2. Household appliances and electronics

Russians do not have much confidence in Chinese technology, but again the price factor has an impact and there is significant demand for this category of goods among the population. The purchase price from partners is very low and the entrepreneur has the opportunity to earn good money

3. Perfumery

There have never been famous perfumers in the PRC, but the country is very good at copying fragrances, bringing them to the maximum similarity with the original. At the same time, a similar branded product costs 10-20 times more.

The reaction speed of entrepreneurs in China is very fast: A new branded fragrance appears on the market, and Asian craftsmen are already in full swing creating an analogue.

4. Accessories

Watches, women's and men's bags, wallets, and phone accessories are very popular and best-selling products. Counterfeits in this category of goods are difficult to distinguish from the original. Substitutes for well-known brands are always in great demand among the population and their supplies are very cost-effective.

5. Souvenirs

Most of the souvenir products in the world are of Chinese origin. Tourists and travelers always purchase these products.

Products are made from glass, ceramics, plastic, which allows it to retain its consumer properties for a long time, be stored in warehouses (garages) and sold gradually.

6. Everything for cars

The total number of vehicles in Russia is increasing from year to year, and the cost of car maintenance is also increasing: technical inspection, repair costs, insurance, fuel. And the objective desire of motorists to save on related products is quite understandable.

Sale spare parts, brushes, covers and automotive video and audio equipment will allow the entrepreneur to satisfy demand and provide himself with a significant level of income.

8. Conclusion + video on the topic 🎥

Business in cooperation with manufacturers and suppliers from China with rational organization of work is very profitable, especially thanks to intermediaries with low commissions, ordering goods from China becomes much easier and more convenient. The price difference between goods between the Celestial Empire and Russia can be 500 % and more.

By choosing the right niche and working with reliable suppliers, an entrepreneur has the opportunity to build a stable, profitable business.

Many young and successful entrepreneurs have already launched their startup projects, where a certain part of the business is occupied by goods from China. we wrote in one of our previous issues.

Dear readers of the business magazine “RichPro.ru”, we will be grateful if you share your experience and comments on the topic of publication in the comments below. We wish you good luck and success in business with China!