Friday, December 01, 2006

Light Bulk Wholesalers

Recently, a new concept called ‘Light Bulk Wholesale’ has emerged with the increasing popularity of online retail stores. This concept was formed by WorldWideBrands, Inc, and refers to working with ‘real wholesalers who agree to sell small bulk quantities of products to home-based internet business owners.’

Before exploring the concept of ‘Light Bulk Wholesale’, it’s better if you have an understanding of the ecommerce industry and how this concept of ‘Light Bulk Wholesale’ came about.

Several years back, it is the goal of many people to start online retail stores, since the entire process is automatic and ‘hands-free.’ The startup costs are also much lower than a real ‘brick-and-mortar’ store, thus online stores are very economical alternatives for the small business owner.

With such a huge number of entrepreneurs aspiring to start online stores, the demand for wholesalers of all products has increased as well. The recent and emergent concept of ‘drop shipping’ removes the need for home-based internet business owners to ship products to customers on their own, satisfying the needs of many online business owners.

However, even though drop shippers offer competitive wholesale prices, the prices that drop shippers offer are still slightly higher than that of other wholesalers or manufacturers. This is due to the fact that drop shippers have to charge an additional handling fee to account for the labor of delivering the products.

Most large and established wholesalers, on the other hand, are not willing to work with small, home-based internet businesses. This is due to the fact that small business owners do not place huge transactions with them each time, like thousands of dollars of products. Large wholesalers do not consider it worth their time to process such small transactions, since their profitability is proportional to the volume of sales – the higher the sales, the greater their profitability. Small business owners thus have a difficult time establishing business relationships with these large wholesalers.

The concept of ‘Light Bulk Wholesale’ from WorldWideBrands, Inc solves this problem elegantly. Since ‘Light Bulk Wholesalers’ can sell products in smaller quantities each time to the online retailer, there is no need for huge upfront capital investments. Most ‘Light Bulk Wholesalers’ can accept $500 or lower minimum orders while still charging the retailer competitive wholesale prices.

If you’re planning to start an online retail business, apart from drop shippers, you may also want to consider using ‘Light Bulk Wholesalers.’ You do not need to make huge upfront capital investments for stocks of goods, similar to drop shipping. This helps to decrease your risk in the business because the investment you can potentially lose is much lower.

Let’s understand the concept of ‘Light Bulk Wholesale’ in greater detail here.

The process of establishing a business relationship with the wholesaler is pretty much similar to other wholesalers. You can either give them a phone call and meet face-to-face to discuss issues like pricing points and billing, or you can communicate with the wholesaler through email if it is based in a different country from where you live.

After negotiating the issues like pricing and billing, and starting an account with the ‘Light Bulk Wholesaler’, you can start purchasing small quantities of products from the wholesaler, usually less than $500 in value.

The wholesaler will ship to you several cases of products that you can store in your own home. After soliciting product images and descriptions from the wholesaler, you can then proceed to design your ecommerce website, complete with shopping cart, product catalogue, and also credit-card-processing functions.

The rest of the process is the same as in any ecommerce store – customers place orders at your website, and you package and deliver the products to the customer yourself. The profitability of your business depends on your internet marketing skills – how well you can drive targeted traffic to your website, and how well you can convert them into paying customers.

To conclude, ‘Light Bulk Wholesale’ is a very viable concept for the small business owner aspiring to start an online store. Although drop shipping also has its advantages, like no need for shipping and delivery, ‘Light Bulk Wholesalers’ can offer slightly more competitive prices. Thus, you need to determine whether working with drop shippers or ‘Light Bulk Wholesalers’ is more profitable for your business.

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