How to Buy Wholesale and Sell Retail

The Basics of How to Buy Wholesale and Sell Retail Products

In theory, buying wholesale and selling items at a profit is an easy way to make a living. However, there is much more to running a business than just buying low and selling high. There are a few things you should know before selling those first products.

Start Your Business

Tax ID

The first thing you should do before selling any items is to obtain a federal tax identification number. You can apply for one on the internet on the IRS website. Using a business tax ID makes it possible for you to open a bank account in your business's name and it makes it much easier to separate your business income and personal income at tax time. In addition, most wholesale vendors require your federal tax ID number when you make a purchase to protect themselves from illegitimate businesses.

Obtain a Vendor's License

Many people who buy and sell wholesale items sell their products in several venues, not just on the internet. If you decide to sell your items at flea markets, festivals, fairs, or local stores, you may be required to have a vendor's license. These licenses can usually be applied for on your state's official website or your state will offer a downloadable application form.

Selling Wholesale Products

Once you've gotten your business paperwork in place, it is time to start shopping for wholesale products that you'd like to try selling. Choosing the right products can determine the success of your business. Sell products you have an interest in. For example, if you love cats and dogs, consider selling products such as pet clothing, accessories, and cute home decorations. If you love sports, try selling sports clothing and equipment. Because you are interested in the products yourself, you will have the enthusiasm and drive to sell them effectively.

Drop Shipping

One of the most popular ways to sell wholesale products at a profit is to sell them by drop shipping. This method requires you to do the advertising in order to sell the products. Many people make a good living doing this on eBay or on their own websites. The seller makes the sale and then notifies the distributor to ship the item to a customer's address. The distributor ships the item to the customer, using the seller's actual address. This allows sellers to offer a wide variety of merchandise without having to maintain their own warehouse.

Find Wholesale Products to Sell

You've decided on the types of products you want to sell; now it is time to find those products. Online distributors offer a wide range of products you can choose from. The following wholesale distributors sell a wide variety of merchandise:

• Simplx
• SMC
• Wholesale Central
• CMD Wholesale
• DOBA

Specific Wholesale Products

The following are some product ideas for business owners who are interested in learning how to buy wholesale and sell retail for specific product lines:

• Fragrance X – drop ship just about any fragrance to your customers
• Wholesale Supplies Plus – offers a great variety of soap and candle making supplies
• Evertek – offers computers and computer accessories to resellers
• Pet Wholesaler – from cats to parrots, this wholesaler sells products for just about any pet
• Wholesale Trains – from Lionel to Thomas the Tank Engine, this site has everything related to train collecting

B2B Business

If you are buying and reselling wholesale items, you are a B2B or business-to-business operation. When looking for new things to market and sell, try entering B2B and the type of item you want to sell into your internet browser search box. You'll find plenty of items available for sale by distributors all over the world. Once you master how to buy wholesale and sell retail, the success of your business will only be limited by the number of products you want to sell and your enthusiasm for marketing and getting the word out about your new business.