The manufacturing sector is the largest revenue-generating industry in the world, and its sales volume has been boosted by the trend of global online shopping. Rapid technological advancements has helped retailers buy wholesale items at a cheap rate and then sell it off on online portals with a decent profit margin. Therefore, the global wholesale market provides a great opportunity for people to start a profitable venture.In most countries, the wholesale market is a large domain with several products available for bulk purchase. The most popular items traded globally are jewelry, cellular phones and tablets, electronic goods, watches, cameras and other objects that can be transported easily. Apart from selling internationally acclaimed branded products, these markets also promote local products that are available at a relatively lower price.The rising popularity of the global online shopping model can be attributed to a several factors. It provides the customer the unique opportunity to purchase items from the comforts of their homes. Moreover, online shopping provides incredible convenience with no fixed operational hours as buyers can purchase goods any time of the day. The choices available on these online stores are infinite, and with a little bit of effort, one can always find the best deal for the product of their choice. For the retailer, online shopping does away with the extra costs of setting up a brick and mortar store, and paying for the overhead expenses such as electricity bills, rent and other property taxes. Additionally, the cost of employing sales executives and cashiers are eliminated, as simple software applications can easily take care of these aspects efficiently and effortlessly.
From the business perspective, buying products from the wholesale marketplace is just a part of the complete business plan. There are a few overhead expenses that one needs to consider before determining the final selling price. If the warehouse for storing the goods is located at a distance from the wholesale marketplace, it adds an overhead cost of transportation. Other expenses include cost of setting up and maintaining an online store apart from the taxes that an online retailer needs to pay to the local authorities. Moreover, since the global online shopping model involves the concept of free home delivery in most cases, the cost for shipping the items to the customer needs to be borne by the retailer. A large number of international businessmen purchase wholesale goods from other countries, which adds the overhead costs of customs and excise.A major challenge of venturing into this business is that one would be subjected to stiff competition. There are several businessmen who are already purchasing bulk quantities and selling them off at their own online stores. Therefore, it is difficult to maintain a decent profit margin from your sales if you want to stay ahead of the competition. However, one way to race ahead of your retail competitors is to look out for new arrivals and sell them at a premium price. Fresh products are released on a regular basis, and one must keep an eye out for these new arrivals. Customers are more interested in purchasing stuffs that are unique and not readily available in the market. As a result, they are willing to pay a premium price to purchase them. Therefore, if you can identify the new arrivals and purchase bulk quantities, you could sell them while keeping a decent profit margin. However, not all new arrivals are popular among retail buyers and one need to use their discretion to determine the products that are likely to be a hit among customers. The ability to judge the demand in the market and the efficiency to meet these demands determines the success of an online retailer.