Friday, June 5, 2009

The More You Buy, the Lower the Wholesale Prices - Wholesale Purchasing Tips from Worldwide Brands

By Chris Malta, CEO and Founder of Worldwide Brands

Wholesale Tip #5
Many new eBay Sellers don't realize the larger your purchase quantities, the lower the wholesaler price you can secure. We also hear many eBay Sellers complain their competitors' retail selling prices are lower than the wholesale prices they must pay. It's a valid frustration, but the reason is almost always that they are up against a competitor who is a much larger retailer and can buy products in much larger quantities. The larger Competitor is getting better wholesale price breaks.

Here’s how wholesale price breaks work. The per-unit price lowers as the order volume increases. If you buy less than 100 units of a product, for example, your wholesale price per item might be $5. If you buy from 101 to 250 of a product, for example, your price might lower to $4 each. Wholesalers make small profit margins; so they have to make their money by selling more quantity. The more you buy; the better prices the wholesale supplier can afford to give you.

Obviously, any online retailers who can afford to purchase products in larger volumes will get better prices. With better pricing, they can afford, in turn, to lower their retail prices and still make a profit. Don’t worry! Contrary to what some eBay Sellers believe, you DO NOT have to cut prices to compete. There’s MUCH MORE to selling than having the lowest price. Buyers may spend more to buy from a retailer who makes them feel secure. Effective selling is about building customer respect and trust, not undercutting the prices of everyone around you.

Begin with drop shipping and light bulk buying in small quantities as you can. When you determine the best selling products that earn more profits, you can negotiate better volume Price Breaks. This is the way to grow your online business at your own pace.

Worldwide Brands is an eBay Certified Solution Provider providing product sourcing information for eBay sellers. They are the publishers of an extensive directory of legitimate, fully-verified ecommerce wholesalers and manufacturers.

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