Where to buy wholesale goods, domestically or overseas? Is there any reason for buying overseas goods from domestic dealer? Where to find overseas manufacturer? What about wholesale pricing inside and outside of the country? A lot of these questions face up business everyday. Let’s try to analyze advantages and disadvantages of domestic and overseas buying.
When thinking of starting retail business, what usually comes to your mind are two basic wishes. The first one is to find domestic or overseas manufacturer (wholesale supplier) who will “give” you the goods you’d like to sell in a store. And the second one is a low wholesale price. It’s reasonable because the difference between wholesale and retail price is your profit.
Where can I find a supplier?
The best place to start a search is online. There is a wide set of “business” searching engines for domestic and overseas suppliers, from simple googling to a professional B2B trade platforms. Buy calling (if domestic) or emailing (if overseas as like as domestic) them you will get the information you need: prices, shipping questions, minimum order and etc.
Buying from overseas
How to buy wholesale from overseas? It isn’t a surprise that the main goal of wholesale buyers is to find a supplier overseas. Not everything (and sometimes particularly nothing) is made in one country anymore. There is also a demand on “foreign” products inside the country. That’s why buying wholesale overseas is so popular topic among trade companies. In most cases every country has “own specialization”: agriculture, electrical equipment, clothes, general industrial equipment and so on. On b2B electronic market places, such as TradeDeals.Biz, you can choose not only the goods you’d like to buy but also the country you’d like to co-operate with. China, India, Russia, Germany, France or any other, everything you need is just to search appropriate criteria at the top of the main page. So, advantage number one is a wide choice of goods, in hundreds times more than buying domestically.
Advantage number two is obtaining the lowest prices, buying directly from the overseas manufacturer or wholesale suppliers.
There is nothing difficult in buying overseas. No need to going foreign countries and meet with potential suppliers face to face. Doing business across borders is easy. If you use the Internet to keep in touch with friends you won’t have a problem to contact with a business partner. Once you have established a good relationship with one wholesale supplier (of electric equipment or FMCG manufacturer), it becomes easier to keep working with him and find the new ones. Many legitimate (means reliable) manufacturers and other wholesale suppliers located overseas provide goods and services to the consumers from the whole world without any difficulties, such as shipping, documents, language barriers or money transfer. The most of direct manufacturers are trying to target consumers in other countries by placing on B2B electronic market places, translating corporate web site in different languages and using other ways of online and rarer offline marketing.
Buying wholesale domestically: pros and cons
Buying products made inside the country is the one side of buying domestically. Buying overseas products from domestic dealers is the second one. The main advantages are:
Domestic dealers require fewer minimums than overseas manufacturers. In the case of dealing with overseas you have to purchase larger quantities of units, even more than you are going or can buy.
There is no language, cultural or communication misunderstandings with business partners. Overseas partners may speak poor English, German, French or do not speak at all.
Fewer problems with documents and trading law. One country means the same standards.
There is no or shorter shipping procedures. Transatlantic flights, sea “pirates”, epidemic threat are absent.
Time between the first email to final receiving is much less then dealing with overseas manufacturers because of cargo delivery mostly.
There are more possibilities for personal contacts and negotiate on the purchase price with domestic suppliers. It is cheaper, quicker and no need to do a visa.
No problems with money transfer. The same banks operate in one country. No need to open dollar/euro account and pay fees for every transaction.
Saving money by avoiding currency fluctuations.
Reduce your risks by learning more information on the location market: clients name, business reputation, CEO’s story and many others.
After reading all these advantages outlined above everything seem more appropriate, convenient and easier than buying wholesale overseas. However, there is the main disadvantage domestic dealers offer extremely high prices in compare with overseas manufacturer’s ones. So, profit margin you’d like to get from retailing will be lower. For every point above you have to pay. On the other hand all these difficulties connecting with overseas manufacturers can be solved easily.
So, what to choose? An answer depends on initial amount of money you have and business goals you’d like to achieve. If you get used to work with high volumes, wide nomenclature and assortment, it makes sense to buy overseas in order to save (and earn) a significant amount of money and diversify business. If you are just starting out, have no wholesale buying experience or money you have is not enough for minimum order it is a good idea to buy local and try to do the first steps in retailing. Your city or country is probably big enough and all popular goods are available at good prices, less shipping costs. To get more information visit international diversified B2B electronic market place and try to check out some searching criteria.
We are living in the world of e-business: e-commerce and e-marketing. You can easily find a set of manufacturers you would like to co-operate with, logistic company who can deliver the goods you order wherever your supplier is situated. Searching online is not always as easy as it seems. Simple googling may show hundreds of pages which won’t be useful for you, on the other side you can find reliable business partners buy checking out b2b portals. If you work with domestic suppliers only, you won’t get the best pricing and wide assortment of wholesale good you’d like to resell. But how you prefer to obtain your goods, domestically or overseas, is up to you, just remember that the more work you put into business, the more profits you will get back.