How To Buy Wholesale Products – Buying Beginner Guide
Source: DHgate, Tag: E-Commerce Tips
Want to learn how to buy wholesale products? Become a seasoned wholesaler expert in our wholesale buying guide.
Buying wholesale products is a proven strategy of how to save while shopping. There are so many online platforms that accord you with this opportunity, whether buying for reselling or personal use. One of the best platforms to make a wholesale purchase is DHgate.
This platform is a China-based B2B cross-border online marketplace. It was founded in 2004 and has since emerged to be the best marketplace for selling wholesale products to global buyers, especially for resell.DHgate is particularly renowned for its high-quality products at surprisingly low prices. The massive market has grown tremendously in the past decade attracting over 1.2 million merchants who list over 30 million products on the platform, a guarantee that you will find any imaginable item on this online marketplace.
Further, it is available in different languages and is supported with the latest technology to enhance your shopping experience. Perhaps, you are now wondering how to buy wholesale from DHgate? Well, please follow this beginner guide to find your way of buying wholesale from DHgate to get high-quality products at wholesale prices and enjoy a seamless shopping experience.
How to Become a DHGate Wholesale Buyer?
Becoming a wholesale buyer on DHgate is a relatively simple and free process. However, you will be required to do some homework and cover some startup costs. Here is how to register with DHgate as a wholesale buyer.Get your identification documents: these prove that you are a legal company doing business with your company. Make this a top priority since you cannot start hiring people or selling products without a business license.
Acquire a sales license: this is a legal document to allow your enterprise to make sales. Its application fee and process vary from one state to the other.
Acquire your sales tax ID: This document differs from each state, but it is necessary for any business. Governments based on this information allow companies to collect and submit tax returns.
Apply for registration as a wholesale buyer on DHgate: once you have all the legal documents for your business, you can log in to DHGate.com to create your account as a buyer. The registration process is free but go through our registration agreement before creating your account. After following all steps and your registration is approved, you become a wholesale buyer on DHgate. You are now at liberty to start contacting suppliers, establishing relationships and assisting your business to grow.
How to Become a DHgate Wholesale Buyer Without a Business?
There are three scenarios under which you can buy from DHgate wholesale without a business.Purchase on wholesale like a reseller who does not have a sales ID.
Buy wholesale like a reseller who has a sales ID but does not have a registered business.
Make a wholesale purchase as a consumer.
All these circumstances involve different actions and results. In the first case, a business owner buys and sells products without the government’s knowledge. The second scenario indicates that the wholesaler is engaging in business with some legal documents but not all. The last case shows that the wholesale buyer is getting goods for personal use. The third scenario is the most common and legal way of purchasing products from DHgate without a business.
The Process of Buying Wholesale Products on DHgate
Once you have figured out your priorities, buying wholesale on DHgate is a simple process. Here are some tips on how to buy wholesale.Conduct market research. The current global wholesale market is growing at 1.2% per annum, translating to predictable e-commerce growth. With a large number of brands competing against each other, a thorough market search is critical to establishing the best wholesaler.
Set up a professional brand image in advance. Despite the competition among wholesalers, most have strict requirements that limit inexperienced wholesale buyers they deal with. But with a professional image from the word go, wholesalers will be more interested in working with you. A professional image involves having an account with the best bank in online transactions and getting your e-commerce business license in place.
Decide on a niche. If you are not sure about the wholesale product to buy, you should decide on a category. Todays’ customers are very selective in their shopping and won’t buy cheap products for the sake of cost-saving. Therefore, your selection of the niche and goods should consider quality and budget to ensure that they meet your customer’s needs.
Browse a wholesale directory. Check out any website that provides information on wholesale sellers, their products, and how to reach them. This is an effective way of getting your foot in the front door and starting to establish a business partnership. Please note that if a wholesaler is hard to contact, they are more in demand, or their customer service is not good enough for your needs. Therefore, conduct your search with such considerations in mind and only buy goods from wholesalers at a reasonable price.
Get your reseller’s permit. It is necessary to have this document to buy goods wholesale as it shows suppliers that you are a legal enterprise. The permit is critical as it helps suppliers determine the type, amount, and the market to offer a given product.
Attend trade shows and related events. Attending trade shows is one of the best ways to get your wholesale buying started. During these events, wholesalers and handmade product manufacturers display their products and develop sales relationships. Use these shows to identify suppliers who provide a low minimum order quantity and are more willing to work with new wholesale buyers.
Now that you are knowledgeable about buying DHgate products wholesale, it is essential to expand your know-how according to your niche. In this regard, let's consider some best practices for getting some specific goods wholesale.
How to Buy Bulk Wholesale Products from DHgate
Most wholesalers require that customers who buy their goods wholesale do so in large quantities. Most suppliers' minimum order quantity (MOQ) demands that are goods are ordered in bulk, mostly 100 units or above. This approach is also accompanied by bulk shipping.
Begin by looking for wholesalers who supply goods in bulk. This is not a challenging task as most suppliers are aware that resellers want to buy products in bulk. The strategy will also lower your shipping costs, maximizing your resale profits.
When you get an appealing supply, inquire about their minimum and average order quantities. This will help you understand the number of orders you can get from them and at what frequency. Further, be aware of your lead time and inquire about the supplier’s lead time to ensure seamless delivery of purchased products to you.
How to Purchase Wholesale Grocery Products?
There are multiple ways of buying grocery items wholesale. However, your approach will depend on what you are buying for resell. For instance, if you are dealing with dried, dehydrated, or packaged products, you can source them from thousands of wholesalers on DHgate. Make use of wholesale directories to quickly browse through the food categories to find a reliable supplier. Additionally, ensure that your warehousing capability is well-equipped to handle food-related products.
How to Get Name-Brand Goods on Wholesale?
One of the best strategies to stand out as a wholesale buyer on DHgate is to consider name-brand items. Doing comprehensive research on the goods, you want to deal with, and their suppliers is critical at this moment. Fortunately, DHGate is one of the best websites that offer established goods through a wholesale marketplace. Nevertheless, take your time to research your suppliers and understand their requirements to get an excellent start in your wholesale business.
Note that if the product is more specific and branded, its supplier is more likely to have strict licensing agreements. Name-brand wholesalers may demand that you verify your selling history or show proof of monthly volumes to start working with you. Nonetheless, selling name-brand items remains the most lucrative path you can take to ensure the prosperity of your business.
How to Buy Wholesale Products from DHgate for Resale?
Understanding how to buy items wholesale for resale is similar to the general process of buying wholesale. It also involves filling out some paperwork, establishing business relationships, acquiring the products, and managing the inventory.
The significant difference between buying wholesale products for personal use and resale is the reselling license involved. Note that when you purchase wholesale from renowned suppliers, you will always be required to have an updated reselling permit as these suppliers have stricter requirements than upcoming wholesalers.
Occasionally, reselling permits include details such as the markets you can sell directly to clients, the types of products you are offering, and the number of goods you are permitted to sell. Ensure that all potential suppliers meet your needs before signing as a reseller. This is crucial because the supplier you partner with is critical for your business.
These steps can guide you as you get ready to start reselling:Ensure that relevant government bodies have approved all your business paperwork.
Review the goods you want to resell and confirm your suppliers’ contact details.
Make your final budget and check to ensure that your sales forecasts are realistic.
Check to confirm that your website and store are ready for sales.
Get your marketing strategy in place and start reaching out to customers.
Ensure that you aim for order fulfilment by shipping products to customers on time, as this will caution you against resorting to back-ordering or making new orders.
Why Making Wholesale Purchase is a Great Deal?
The moment you are done with your paperwork and your buying process is determined, making wholesale purchases becomes an exciting endeavour. You will have total control over the goods you will be reselling and your marketing plan. Make use of this guide to start or enhance your enterprise and make contact with new customers. Additionally, the steps can be used to test a new dropshipping adventure.
FAQ
You need to have a firm understanding of the goods you want to busy on wholesale for reselling to build a successful business. Gain more insight on buying wholesale from DHgate through the following commonly asked questions.
Is Buying Wholesale for Resell Legal
Yes, it is legal to make wholesale purchases for reselling. However, to do so, it's mandatory to have a wholesale buying permit and a business license in line with your business category. For instance, if you resell online, you will be required to have an e-commerce business permit. Additionally, ensure that you comply with all tax requirements as governments use them to track the incomes and legality of businesses.
What’s the qualification to buy wholesale?
To start buying wholesale on DHgate, you need to register for a buyers’ license. This is essential because of the following reasons:
First, it shows your government, wholesalers, and your buyers that you are a legal dealer of wholesale products. You are a known enterprise that is conducting business in an ethical way.
Lastly, it minimizes or eliminates sales taxes. Most states regard a wholesale permit as a substitute for sales tax, hence, removing per-unit taxes, which often pile up quickly.
Is DHgate a Wholesaler?
No, DHgate does not sell or ship any merchandise wholesale. It is just a platform that connects suppliers and buyers. Further, the company does not engage with consumers directly unless they file a complaint against their suppliers.
Learning how to buy wholesale is the best way to gain insight into saving while conducting your online shopping on DHgate. Therefore, it is critical to understand how to become a wholesale buyer. Understanding the legal requirements to register as a wholesale buyer on DHgate is the first and most crucial point to get started. Once you are registered on the platform, it is easier to start your wholesale buying process through strategies like conducting market research, deciding on a niche, and attending relevant trade shows to establish business partnerships with reputable suppliers. With everything in place, you will enjoy your buying wholesale business as you have total control over resells, allowing you to make huge profits to guarantee the sustainability of your business.