Buying in bulk: what are the tricks to making a nice profit? You will find in this advice all the useful information to be efficient.
Buy in bulk to resell
Already, buying wholesale for resale, what is it? The practice is to obtain a large stock of items at low prices in order to resell them at a higher price. It may seem simple on paper, but it is important to be well prepared in order to face this wholesale purchasing business model, which can end up being risky. Several variants exist: which product category to buy? To whom to resell? Under what conditions? What margin, quantity, storage location? Many questions are to be asked before taking action to be sure to make an interesting profit and to repeat the experience in full knowledge of the facts.
Also, you need to determine the category and quality of the products you want to resell. New products? Unsold? Customer returns. Non-functional products to repair? In any case, you need to understand the state in which your items will be in order to start with the right purchase price. You will be able to specify your selling price and therefore the margin that you will put in place.
Buying wholesale7 cheap clothes to resell does not happen overnight as an individual. You need professional status if you want to avoid distorting your tax return. One wonders where is the limit between occasional reseller and professional reseller? beyond €3,000 in turnover and/or at least 20 transactions over a year, the platform on which you post your ads is under a legislative obligation to transmit transaction-related data to the tax authorities.
For example, the micro-enterprise is created very easily but it has a prorated threshold of annual turnover. Social charges are lower but they are calculated on the turnover and not on the profit. It is advisable to be well informed according to your objective, and above all to define it upstream so as not to find yourself blocked by its status or to drown in unnecessary charges and declarations.
Wholesale womens fashion remains a very exclusive sector and it is difficult to project yourself into an activity when the sector in question is not as transparent as retail. Wholesale wholesalers are tight-lipped about their pricing, which can be a drag on a viable economic projection.
Some online platforms offer pallets of products of different qualities and categories, allowing you to get an idea of the prices applied as well as the condition of the resalable goods. At Stickler, you have access at a glance to the essential information of the lots offered, thus helping you to make an informed choice of the different variables to take into account. Find our current destocking auctions on our B2B marketplace and create your account to find out all the details useful for bulk purchase transactions for resale.
Bulk buying is a lucrative business model to consider in today’s circular economy. However, it is essential to be well prepared before taking the first steps.
Determining the key figures you want to achieve will allow you to better anticipate and consciously choose the business model you want to implement. It is possible to obtain supplies from destocking wholesalers, online platforms, directly from brands… However, you must pay attention to the category and quality of the goods you wish to resell, to be sure of getting a interesting margin. Anyone can buy in bulk to resell. You just have to be careful when reselling not to exceed the authorized tax thresholds if you are a private individual. Some suppliers may also reserve their merchandise only for professionals.