1. Speak to our customer support team live today
    Dismiss Notice
Dismiss Notice
Thanks for visiting The Wholesale Forums! Register for FREE today and gain access to more information. Sign up with Facebook, Twitter, or Google.

Basic Guide to Wholesale Trading 2017

Discussion in 'General Wholesale' started by bondandco, Apr 1, 2009.

  1. bondandco

    bondandco

    Joined:
    Aug 27, 2008
    Messages:
    1,669
    Hi everyone.

    It's about time these pinned threads were updated with fresh and current content that'd benefit our users even more. With this, we have edited this guide into a Basic Guide to Wholesale Trading 2017.

    We'd recommend anyone starting out in the industry to understand the basics of marketplace trading, and the terminology involved in this area of wholesale. If you're looking to purchase wholesale products from our own wholesale marketplace, or others, then knowing what the basics are, is crucial.

    What is MOQ? - This is the abbreviation given to Minimum Order Quantity. When a supplier or advertiser states their MOQ, it means the minimum amount of units (or items) you must purchase from your supplier to qualify for purchasing of these goods.

    What is MAP? - MAP, or Minimum Advertise Price is the price set by the manufacturer, which means the retail price cannot go any lower than this set price. If you were to not include a MAP, then others may assume your product is not up to mark, therefore protecting your brand and reputation.

    Physical Stock - If a supplier states their stock is physical, it means they actually have the stock with them and its ready to be sent out once purchased.

    Dropshipping - If you choose to use a dropshipper, this means you can advertise products on your site, and when paid for, you pay the dropshipper and they send direct to your customer. The benefits are you do not hold any stock at all, so there in terms of starting out with a lot of capital is not needed. However if you do go the dropshipping route, you need to make sure you trust your supplier to deliver on all accounts; after all, this will have a negative effect on your company.

    Blind Dropshipping - Blind dropshipping means the customer will receive the product /s with no reference to the dropshipper or their details, giving the feeling the product is straight from your company alone.

    Distributor - A distributor is an independent company that purchases products from manufacturers, warehouses them, then sell and deliver to wholesale buyers.

    MSRP - Manufacturer's Suggested Retail Price is the recommended price the manufacturer set for the retailers. Whether the retailer stick to the suggested price is entirely up to them.

    VAT - Its pretty obvious but a liability you need to check. When ordering from overseas it is possible VAT (Value Added Tax) may be added to your order. The current rate for the UK is 20%. Many buyers complain typically on other marketplaces such as eBay when they receive their order and find out they need to pay an extra lump on top. This is why we stress to look out for Buyer Liabilities and other costing factors on all product listings.

    T/T - Telegraphic transfer - This is a payment method that can be used when paying a supplier. It usually means the transfer of money from your bank into the suppliers. This isn't the safest way to pay a supplier as there are tons of scammers out there, and once a T/T is sent it cannot be reversed.

    L/C - Letter of Credit - This is a document from a bank that guarantees payment to the seller once all requirements are met from the buyer. If a seller for example fails to deliver a product, then the buyer may be able to be paid back their original amount spent with you and could then spend that money elsewhere.

    EXW - Ex Works - This is a term used mainly when goods are being imported. It means the seller will make the goods available at his/her place of work and the buyer will have to pay for the goods to be shipped to their address.

    FCA - Free Carrier - If you see a seller selling goods using this term it means that they will ensure the goods are exported. Once imported you will need to continue their mode of transportation to your desired place.

    COD - Cash on Delivery is what it says.

    There we have it, just some of the basics to start out with.

    Regards

    John

    <Staff Edit: Updated document as of 2017>
    Last edited by a moderator: Nov 10, 2017
    KW452190, steveshaw, mishy03 and 55 others like this.
  2. HaRdy SiNgH

    HaRdy SiNgH

    Joined:
    Sep 7, 2007
    Messages:
    940
    Excellent guide, must be a sticky. Well done John.
  3. bondandco

    bondandco

    Joined:
    Aug 27, 2008
    Messages:
    1,669

    Thanks had a bit of time to kill.

    Thats rare!
    saahaodotcom likes this.
  4. darren1979

    darren1979

    Joined:
    Feb 25, 2008
    Messages:
    1,630
    Good job should help some people out.
    I second the sticky.
    saahaodotcom likes this.
  5. Anthony

    Anthony

    Joined:
    Oct 17, 2004
    Messages:
    17,274
    Must have missed this great contribution, John. Thank you for posting it.

    I've pinned the thread. Excellent resource.
    saahaodotcom, Eric-Yong and henry P like this.
  6. Alex Katez

    Alex Katez

    Joined:
    Apr 3, 2009
    Messages:
    10
    is there anyone who have ever do DROPSHIPPING method? I know this word but I don't quite follow what it really is.
  7. bondandco

    bondandco

    Joined:
    Aug 27, 2008
    Messages:
    1,669
    Many traders are now using this method. My post at the top pretty much somes it up.
  8. decca234uk

    decca234uk

    Joined:
    Feb 19, 2009
    Messages:
    27
    Hi,
    Thanks, just what I needed.
    saahaodotcom likes this.
  9. tvcmall

    tvcmall Banned Member

    Joined:
    Dec 4, 2008
    Messages:
    578
    Easy to read and useful , Suggest to add Paypal & Western Union .
    saahaodotcom likes this.
  10. bondandco

    bondandco

    Joined:
    Aug 27, 2008
    Messages:
    1,669

    I will add both in next couple of days.

    Thanks
  11. patterson

    patterson

    Joined:
    May 18, 2009
    Messages:
    24
    Very useful guide.

    Thank you very much!
    saahaodotcom likes this.
  12. Hooley

    Hooley

    Joined:
    May 28, 2009
    Messages:
    17
    Some good stuff for newbies like myself. Thanks very much. :niceone:
    saahaodotcom likes this.
  13. edcruise

    edcruise

    Joined:
    Jun 2, 2009
    Messages:
    55
    i have one question, when someone sells and they mention that they have Full Paperwork.
    what does this mean?
    saahaodotcom likes this.
  14. BSKProductionz

    BSKProductionz

    Joined:
    Jun 13, 2009
    Messages:
    14
    great thread much appreciated and makes me know wat these terms are all about , thanks again
    saahaodotcom likes this.
  15. yar

    yar

    Joined:
    Jun 20, 2009
    Messages:
    12
    I am new to international importing and exporting so thank you.
    saahaodotcom likes this.
  16. fashionhunters

    fashionhunters

    Joined:
    Jun 25, 2009
    Messages:
    3
    get detailed information! :)
    saahaodotcom likes this.
  17. matto

    matto

    Joined:
    Jul 8, 2009
    Messages:
    9
    Thanks, nice guide :D
    saahaodotcom likes this.
  18. sherazash

    sherazash

    Joined:
    Jul 11, 2009
    Messages:
    9
    Thanks, some good General Information
    saahaodotcom likes this.
  19. Vbp6us

    Vbp6us

    Joined:
    Jul 16, 2009
    Messages:
    12
    Great guide.
    saahaodotcom likes this.
  20. jhemsley30

    jhemsley30

    Joined:
    Jul 17, 2009
    Messages:
    23
    This helps a lot. I'm sure a lot of people will benefit from posts like these, keep them coming.

    Thanks
    saahaodotcom likes this.
Back to top

Share This Page