Jerome Basilio and his team welcome you to this website! Together with us, you will see the true colors of the eCommerce era, business models that work the best, and other interesting facts about online marketplaces! Today, we are going to answer a very popular question: why wholesale? Why is this business model so popular? What makes it special, and why should you choose it?
First of all, what other options do we have? There are many business models that eCommerce sellers choose and love. For example, online/retail arbitrage, private label, liquidation business and so on. Each of these models have their worth, but still, we will always go for wholesale! Why? Let’s see!
Online and Retail Arbitrage
Let’s have a look at one of the easies business models in eCommerce: online/retail arbitrage. If you choose this business model, you have to purchase goods from either online or retail stores, and resell them. Yes, sounds good, but still, its disadvantages are bigger!
Choosing arbitrage over other business models means that you won’t be able to find renewable and replenished items for your business. Apart from that, imagine how long it would take to handle the sourcing process: time is money, remember! And one more thing, almost forgot! eCommerce giants like Amazon hate this business model, even though they haven’t included that in their policies!
Yes, we know that buying liquidated stuff is way cheaper than purchasing ordinary products, and yes, we know that it is profitable for sellers! But alas, if you want to work with biggest eCommerce platforms in the US, you will have to abandon the idea of liquidations! And in addition, you will have to buy liquidated products in large quantities, which may end up being a burden for you. What if all those products aren’t sold? What are you going to do with the vast amount of left items? Liquidate the liquidated items? And what’s more, chances are high that the products will be damaged, broken or defective!
Everyone loves private label, because you just find a manufacturer, purchase products and put your name on them! But did you know that even this seemingly perfect business model has lots of cons and drawbacks? It’s no wonder that most sellers use manufacturers from foreign countries because this way it is way cheaper. That’s why language barriers will be a great problem for you, and the manufacturer. We’ve even seen some cases when both parties didn’t understand a word, and couldn’t communicate, in the era of technologies!
What’s more, you’ll have to invest a gigantic amount of money for your startup business, and wait until it pays off. As we said, you will be working with an overseas country, that’s why importing and exporting goods will give you headaches and numerous problems without a dedicated team of employees!
We choose wholesale because we see huge potential in it! Even though it also has its drawbacks, like furious competition or mind-numbing product research, its advantages show us its better, brighter and more profitable side!
With the help of wholesale, you will be able to sell famous products by famous brands that are in great demand. There are tones of products like that which never go out of fashion! So, you won’t spend your precious time (that you can spend on growing and marketing your business) on building a brand, you’ll automatically start earning money (faster than private label sellers do)! And unlike private label, you will deal with English speaking suppliers that understand your needs and wants!
In other words, we choose wholesale, and what about you? If you’re starting your eCommerce business and don’t know which business model to choose, go for wholesale, and we will help you with that! It’s normal that novice wholesale sellers don’t know all the secrets of inventory management, negotiations with suppliers and other stuff, and that’s why we’re here! We will help you with that!