While the employment rate has been improving slowly over the last few years, a high percentage of Americans are still looking for ways to supplement their incomes or considering going into business for themselves.
Brokering wholesale merchandise can be an excellent way to start a business with almost no initial investment. All you need is an internet connection and a computer, basic research skills and a willingness to learn. Wholesale liquidator Via Trading Corporation based in Los Angeles Calif. recently interviewed several wholesale brokers to help identify things that can make or break a brokering startup.
Diversify Your Supplier Base
One of the key factors in building a lucrative brokering/dropshipping business is having a wide variety of product. Sure, you can create a niche market and target very specific buyers with very specific needs but you are likely to have a much wider reach by varying your inventory offerings.
Since brokering means you will be making sales without having to physically deal with any product, the way you obtain a wide variety of products is to work with multiple trustworthy suppliers or with one or two suppliers who have a wide range of wholesale products for you to choose from.
Qualify Your Suppliers
Don't just take what potential suppliers say at face value. Look around for customer testimonials, valuable content that the supplier might offer on its website and other indicators of the company's legitimacy like professional recognitions. Look for reliability, reputation, fast shipping, good prices and good service.
It's very easy for a supplier to make their initial sale to you but your priority should be on how they will service you time and time again, and how they will deal with it if you bring a problem or complaint to their attention.
Research Items First
Before you list any items, take care to research similar products on your competitors' websites to see what you can realistically sell them for. If you find that you are able to source the product at less than the average price you see online, it's probably a good one to list on your site.
You can take the time to be selective and list items that are in good condition, appealing to a wide customer base and more likely to get you good reviews and repeat orders.
Be Realistic in Your Expectations
Many people who start out in the business of brokering merchandise for profit expect to do a fairly limited amount of work since they never have to photograph, touch, describe or otherwise deal with the merchandise. In many cases, this approach leads to a tough learning curve.
Especially since you don't have the goods in front of you, you'll have to take extra care to get as many details about the product as you can from your supplier, answer customers promptly, alleviate any concerns they have and stay in constant communication with your suppliers.
Mostly, keep your expectations realistic and don't expect to make a huge profit on any individual sale. The margins are small in the wholesale liquidation merchandise business and the profits come with increased volume of sales. The more individual transactions you make, the higher your profits will be. Focus on building and growing your customer base, keeping them happy and coming back for more.