If you?ve never dealt with a wholesaler online before, you may find it isn?t as you would expect. Robert Pugh, author of The eBay Business Handbook, suggests eight points to consider.
– Prices will not include VAT. Ensure that you factor this into any price calculations when working through your margins. It?s always best if you expect to pay 20% (the current rate of VAT in the UK) more than the published price.
– Check for minimum order values. Ask about order sizes and consider the impact on your cash flow and storage. Do not underestimate how much room you will need.
– Are they genuine brands? Ask for a sample before placing a big order, just to be sure.
– Prices do not include carriage. Check how much it will cost to have the items delivered to you. Postal expenses can add up before you realise.
– You may have to provide references.
– Some wholesalers will require references from your current business contacts and more often than not there?ll be a form to fill in.
– Mixed lots. As some manufacturers pack similar lines in the same box, be prepared for a delivery that almost has exactly what you asked for. The quantity will be correct, but don?t be surprised if the particular items vary each time.
– Be bold. Your wholesaler will also supply to other traders. If they have something you like that sells well and is the right price, buy in bulk ? it may all be gone when you want to re-order.
– Cash or account? There are two ways to pay for your goods: cash or on account. If you want to open an account, be prepared to fill in more forms and provide bank details.
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