Are you a small business owner considering selling wholesale? Today, I’m going to share 10 things I think everyone should know before they start.
If you’re looking to start or grow a small business, make sure you’re tuning in to the Crafting for Profit Live podcast for regular tips and tricks to help you.
I recently visited with Cori George and Brittany Wolf to talk about how to get started and be successful wholesaling, and they shared a lot of great information.
You can watch the whole episode by pressing play on the video below.
Selling Wholesale 101
I recommend working through this collection of tips before you begin your selling wholesale journey to ensure you’re ready.
No. 1 – How Do You Know You’re Ready to Start Selling Wholesale?
Whether or not you’re ready to start selling wholesale will be different for everyone, but there are some things to consider before you begin.
Do you have a curated line of products? Have you had success selling in a local shop? Do you have a reliable turnaround time and a tracking system? Do you have a Shopify or Etsy set up? Do you have a product catalog set up?
If you answered Yes to all of these questions, you may be ready to start wholesaling.
These are just some of the questions you need to answer before you start wholesaling.
No. 2 – What Are Retailers Looking For in Wholesale Partnerships?
Shops looking for wholesale partners are looking for someone who offers consistency in the product they deliver, and that the products are high quality.
Make sure order requirements are clear for both first-time orders and returning customers.
A smooth experience increases the likelihood of repeat customers, so make sure you’ve run through the process multiple times to get any kinks out.
Unlike craft fairs and even an Etsy shop, for wholesaling, you need a cohesive line with a variety of options for shops to pick from.
Shops like being able to offer something that not everyone else has. By offering a variety of designs and products, they can pick and choose what is right for their shop.
Shops are looking for items they can sell for good margins. Make sure you know the industry standards for minimum items per design and order minimums, and make sure you have that information clear.
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No. 3 – Do You Know the Wholesale Seasons?
The wholesale seasons are different than retail. As of the writing of this post, it’s June and retail is in the middle of summer and gearing up for Back to School.
Businesses shopping wholesale may be looking for Halloween or even holidays. They need time to secure orders and work on their marketing for the items.
This means, as someone selling wholesale, you need to be ahead of their buying cycle and need to have your product lines ready.
No. 4 – How Do You Find People to Sell To?
There are multiple places you can sell, including to shops local to you.
When looking online, there are sites like Faire where you can set up a shop specifically for wholesale.
You can also setup wholesale pricing on Shopify.
While Etsy isn’t set up for wholesale, you can offer custom orders for people who want to order more than what you’re offering in your listings.
Make sure you know the fees charged on the different sites. Faire charges a 15% commission, and they also have a $10 fee on opening orders. You want to make sure you’re covering those fees with the order minimums you require.
You do not have to go through a site for wholesale. You can allow shops to contact you directly via your social media or website. You can also reach out to shops that align with your values and introduce yourself.
An option when you have yourself established is attending a tradeshow. There is a large financial investment for tradeshows so you’ll want to do your research before going that route.
No. 5 – How Do You Get Started?
If you’re ready to start, make sure you do your research. Join wholesaling groups and ask lots of questions. YouTube is your friend. There are a lot of people there who share their experiences to help others know what to expect.
Learn the lingo. In business, you’ll hear terms like MOQ and SKU. You want to know what those are and be set up for them.
SKU is stock-keeping unit. You need a way to keep track of what inventory you have and what has sold, that is why you need SKUs for each item you sell.
MOQ is minimum order quantity. MOQ is important to you so you can make sure you’re making money on each order but it’s also important to those buying from you. Make sure that information is clear.
If you don’t already have one, you need to create a product catalog. This is something you can send to persepective clients and add to your Shopify or Faire sites so they can flip through and see what types of products you create.
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Selling Wholesale Tips
- Remember, this is business, if someone says No that doesn’t mean they don’t like you it just means it’s not the right time for them. A no now doesn’t equal a no forever. Stay in touch and there may come a time when you can work together.
- Selling wholesale is a long game. You have to be ready to put in the time and work. Don’t give up.
- People buy from people. Treat your contacts like individuals. Don’t mass email and take the time to develop relationships.
- Remember, we’re looking for quality partnerships over quantity. A bunch of people who shop once aren’t worth as much to your business as loyal repeat customers.
- Make sure you know the payment terms. With wholesale payment can be net 30 or even net 60. You may be out the production costs for a little bit of time and you need to be prepared for that.
I hope this helped answer some questions you have about selling wholesale. If you think you’re ready, get started. Don’t wait for everything to be perfect or you’ll be waiting forever.
If you have any additional questions, leave them in the comments and I’ll be happy to answer them for you.
