Welcome to The Wholesale Forums!
: :


When a Wholesaler is also an established online retailer


Reply
 
LinkBack Thread Tools Display Modes



Posts: 86
Offline

Join Date: Oct 2009
Location: Scotland
Feedback: (0)
Thanked: 5 Times in 5 Posts
Hi All,

I've been actively looking to increase my range of products and have been searching for a supplier of niche giftware items.

However, I have found that serveral potential suppliers already sell their products online - themselves via Ebay and Amazon. Either through a variation of their name or their actual trading name.

Doesn't this defeat the purpose of being a wholesaler? I mean you would be competing with them directly online. If you are selling via a physical retail store I suppose this would be ok. But for many would-be traders, Ebay and Amazon is usually the way to go especially if you dont have a store.

Any thoughts?
#1  
Reply With Quote Old 29-10-2009, 10:18 AM



Posts: 5,372
Offline

Join Date: May 2009
Location: UK
Feedback: (18)
Thanked: 361 Times in 341 Posts
It only becomes a problem when the wholesaler is retailing products for around the wholesale price.

If they are selling at a fair retail price then its no different to any other competition in my opinion.
__________________
This week only deals! :: Offer 1 :: Offer 2
PREPARING FOR LAUNCH :: www.bellwetherwines.co.uk :: PREPARING FOR LAUNCH
#2  
Reply With Quote Old 29-10-2009, 10:21 AM

TSP



Posts: 362
Offline

Join Date: Jun 2009
Location: UK
Feedback: (4)
Thanked: 26 Times in 26 Posts
I am currently retailing but i am looking into wholesaling as it simply gives me more buying power.

I won't be killing retail price and only making a small markup on the wholesale.
#3  
Reply With Quote Old 29-10-2009, 10:24 AM



Posts: 86
Offline

Join Date: Oct 2009
Location: Scotland
Feedback: (0)
Thanked: 5 Times in 5 Posts
I have seen that wholesalers that also retail do make a decent markup. However, in most cases they are already an established online retailer with excellent ratings/feedback.

Quote:
I won't be killing retail price and only making a small markup on the wholesale.
TSP, if you were making a small markup on wholesale price, would that not put potential resellers off? For example, If they wanted to sell your products online and you are already established. Or how about a reseller undercuts your online retail prices with stock he purchased from you. You would be in a better position to counter-undercut. So where is the benefit for the reseller?

Unless the wholesaler has items they dont retail themselves and reserve for resellers. That would make sense.

Im just looking at this from a perspective of selling online. A retail store in say a shopping centre would not have this issue. Just those who want to use online market places like Ebay or Amazon.
#4  
Reply With Quote Old 29-10-2009, 10:34 AM

TSP



Posts: 362
Offline

Join Date: Jun 2009
Location: UK
Feedback: (4)
Thanked: 26 Times in 26 Posts
Because, as has been said on here many times price is not everything.

If you word your products better, offer a better service you may get the sale even if you are slightly higher in price.

Or you may just get the sale anyway.

The point is the reseller will be getting them for a better price anyway.
#5  
Reply With Quote Old 29-10-2009, 10:48 AM



Posts: 86
Offline

Join Date: Oct 2009
Location: Scotland
Feedback: (0)
Thanked: 5 Times in 5 Posts
Yes, I understand price is not everything. Other things like customer service and professionalism are important.

Its just competing directly with the supplier as a retailer which can put a reseller off. But I guess that's all part of trading
#6  
Reply With Quote Old 29-10-2009, 10:55 AM



Posts: 6,052
Offline

Join Date: May 2005
Location: US PayPal Verified Since 2001
Feedback: (13)
Thanked: 463 Times in 383 Posts
In the end it is up to you to buy or not buy. No matter how you look at it, you ARE helping your competition. You are helping them achieve a better buying price, so they will either make more on their own sales, or lower their selling price to be more competitive.

That does not mean you cannot also make a profit. If they are offering a true wholesale price that is competitive with other sources and then offer a bit more, in terms of quicker order turnaround time, quicker delivery, etc. you should consider them. But you must always keep in mind they are also your competition.
#7  
Reply With Quote Old 29-10-2009, 01:46 PM

Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dascs.com - Brand New 2009 Dascs Cart Ecommerce Online Store Design dascs E-Commerce Development, Hosting Services and Website Design 69 26-11-2009 03:59 PM
help : how retailer pay their product to their wholesaler ? - lingerie Abdelhadi Products Discussion 4 23-07-2009 02:57 AM
Established Offline Business to Online Business baba4u Advertising and e-Commerce Discussion 3 23-06-2009 08:20 PM
Can anyone recommend a online wholesaler for clothes (ladies)? supreetsm Supplier Discussion 6 14-04-2009 08:49 PM


All times are GMT. The time now is 06:35 PM. Fixed Width