Wholesale Products

philscott35

I`m not sure where to post this question so I`ll just put it here...If I were to start selling pet supplies online, how do I go about buying products wholesale so I can make the extra profit, I`ve heard I need a State Tax Resale I.D. but I`m not sure how to go about getting the proper things I need.Please Help.

iouone2

The legal stuff you need (ie tax resale number) is the least of your problems. What you really need is a good resource that provides a low enough wholesale price that allows you to earn the "extra." Finding those resources is very difficult.As far as the legal stuff, you can get that by paying a few state fees and signing your name on the solid (not dotted in CA) line. So what is a good wholesale rate? This is just a blanket statement, but when doing biz online, you need AT LEAST a 50% of retail price. That is to say, if the item generally sells for $100 on other sites, you will need to purchase the item for your business at $50. Even at that rate it is difficult to make good profit. I would say shoot for 33% of the retail price. By the time you pay taxes, shipping, hosting fees, programming fees, graphic fees, delivery fees (from supplier to you), and marketing costs, there isn`t much money left.I know, you`re probably thinking, "I can do the programming, graphic work, and marketing and make the customer pay shipping." Please think again. It`s all time consuming and there may not be enough hours in the day for you to do all that and still have time to eat and sleep.Most of us here are not eating or sleeping.I don`t mean to discourage you. Just make sure your odds of success are good. After all, I would hate to see you bust your butt only to learn you time and money invested didn`t pan out.When I started, I was strictly a drop shipper. Well, for me, I was making little money. So I had to make the decision to raise the stakes (buying inventory) in order to get better pricing to compete.One last thing, price isn`t everything. Make sure to clearly point out why the products you sell are better than the person selling them next door. Sometimes it`s customer service that adds value to your products. Sometimes it`s price. Sometimes it`s... well, the "value added" aspects can go on and on.