Wholesaling Opportunities Abound

Article Written By: rubelzaman

Every small manufacturer needs raw materials from which to fashion his products. Every small retailer needs affordable products with which to stock his shelves. Those two essential facts of business life suggest two business opportunities. Starting your own wholesaling business, you either become the supplier of raw materials to small and medium manufacturers, or you become the broker for small manufacturers goods among retailers in your area. As American manufacturing and retailing recover from the recession, wholesaling opportunities abound.

When you think slightly ahead of the curve, you can carve out your own niche in wholesaling: Who supplies solar and wind energy contractors with their building materials? Who supplies small organic farmers with their plants, seeds, and tools? Who supplies nature-loving new mothers with organic and recyclable diapers? Wherever there is a growing market, you will find a wholesaling opportunity.

What is wholesaling?

Conceive the idea of a supply chain” literally: Producers and manufacturers package goods for sale, typically offering large lots for sale at a price just slightly more than it cost to produce the merchandise. Wholesalers buy these large lots for break-down and distribution to small and medium retailers, marking-up the cost to cover their labour, transportation, and operating expenses. Retailers buy the materials they need from wholesalers, displaying them for eager customers purchase.

Draw two inevitable conclusions from your mental images: First, recognize the wholesaler as the critical link in the supply chain. Second, see the immense opportunities in wholesaling.

Green markets expand wholesaling opportunities.

Two eco-friendly trends coalesce in a spectacular wholesaling opportunity: In the last several years, the American appetite for organic locally grown produce has increased a hundredfold, and thousands of American families have discovered the wisdom of ploughing-under their backyard lawns for the sake of planting vegetable gardens and orchards. Without dangerous pesticides and fertilizers these new-style family farmers grow some of the world s finest produce, and they quickly discover they harvest far more than their families and friends can consume. But they have no way to take their excess produce to market. Hence, the wholesaling opportunity.

Restaurants are eager to add organic fare to their menus; grocery chains are eager to expand and diversify their stocks of all-natural produce. You, the greenest of green wholesalers become the critical link between small family farmers and a market hungry for their wares.

Marketing pundits prophesying destruction and doom claim that e-commerce will destroy traditional wholesaling, because online merchants will deal directly with manufacturers. In everyday business experience, however, online merchants have found that they depend on wholesalers more than ever before.

A virtual store differs very little from a brick-and-mortar business. Marketing strategies differ, but warehousing and merchandising change very little as a merchant moves from the corner of First and Main streets to a virtual location.

If, for example, a vendor sells t-shirts online, she typically cannot afford manufacturers lots of XXL s, and she has little or no room to store truckloads of merchandise. The t-shirt vendor s wholesaler makes her business manageable, selling her just as many XXL s as she can print and ship, controlling the vendor s costs and reducing her need for storage space.

About the Author

Buy organic baby clothes from Bamboo Baby, leading online retailer of organic baby clothes. Visit now for a wide selection of bamboo clothing.

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