10 Steps on How to Start a Wholesale Business

Breaking into the wholesale sector is a great way to expand your business in terms of both its reach and its profits.

Starting off your new venture in wholesale distribution will require some planning, but it will create some incredibly rewarding growth opportunities for your business.

Wholesale is a great option for entrepreneurs because it allows you to tap into more areas of the marketplace than simply running your own e-commerce or online retail business.

Selling goods to other retailers puts you in a great position to tap into not only your own customer base, but the customers of your wholesale clients as well.

How wholesale business grew YoY and its predicted market size

The U.S. wholesale industry racked up a whopping $10 trillion by the end of the second quarter of fiscal year 2021.

That’s an 18% increase in market size from the previous year. Wholesale in the U.S. is the fastest growing sector in the wholesale industry worldwide, with a significant opportunity for U.S. exporters to sell their wholesale items overseas.

Between 2016 and 2021, the U.S. wholesale market has grown an average of about 4% per year, with no end to that growth in site.

Since the U.S. GDP is projected to experience significant growth in the coming year, more and more opportunities for wholesalers and exporters in the U.S. continue to arise. 

What does it mean for someone who wants to start a wholesale business?

As a wholesale distributor, you will be responsible for providing retailers and e-commerce businesses with the products they need to supply what their customers are demanding.

This means you will need a bird’s eye view of the market, as well as a substantial amount of prowess in financial planning, keeping inventory, and staying hip to market trends.

It also means you will have a diverse network of B2C and B2B sales from which you can draw your profits. You will need to have the purchasing power to acquire goods in bulk, and then distribute them in smaller bundles to the appropriate businesses for resale.

The retailers you sell to will in turn repackage and mark up the goods you distribute to sell to the individual consumer.

So, it’s important that you factor in the cost of doing business into your wholesale prices. It’s important to think in the long term here.

How long will it take for your retailers to move all of the product and order more? What needs will your wholesale clients have that you will need to meet? Make sure you’ve considered all the angles.

Steps on how to start a wholesale business

1. Choose your market. Deciding what market you want to break into can be a big step to take, but it is fundamental to every aspect of your business plan.
   
   There are so many sectors to choose from, it can be tough to narrow it down. Take a little time to research a few different industries and pick the one that you feel best suited for.
   
   This will also help you to get to know your customer base, and identify opportunities for growth.

2. Develop your product(s). Once you’ve settled on a market, it’s time for a little R&D. Identified trends, growth, and unmet needs is a great way to connect with your customer base and show them you have what they want.
   
   Developing a product line means knowing what your customers are looking for, and how to get it to them.
   
   Make sure you offer something that will really set you apart from the competition when your product launches!

3. Get to know your customer. So, you know your industry and you’ve developed your product. Now it is time to think about who you plan to market your wholesale products to.
   
   For example, if your industry is pet care, and your product is dog shampoo, who is going to be the most interested in purchasing that wholesale?
   
   Will you be selling mainly to dog groomers? Or perhaps you want to cater mainly to retail stores. Are your customers domestic, or overseas?
   
   Although wholesale distributors mostly sell to other businesses, perhaps you want to consider offering wholesale products to the public via e-commerce.

4. Create a business plan. All the work you’ve done so far has been to prepare you to map out your strategy to success.
   Designing a business model takes careful planning. Get ready to write out your mission, your goals, and the steps you plan to take to achieve them. The more specific you can be, the better.
   
   A highly detailed market analysis can help you to identify the path you want your business to take, and where you want it to end up.

5. Figure out the supply chain. Business plans are a great foundation for the company you’re building. The next step is to flesh out the logistical aspects of bringing your plan to life.
   
   How will you acquire the goods you are going to wholesale? Who will be your supplier? Warehousing, distribution, marketing, and sales also come into play.
   
   Make sure you have all your bases covered. Research any other businesses that you might want to work with, their prices, and how they relate back to your business model.

6. Find a manufacturer. With logistics out of the way, it is time to decide on a manufacturer. Choosing who will manufacture your goods is an important step, as much of the way your business operates will hinge on it.
   
   Some manufacturers will have larger quantity minimums than others, and not all will be user friendly for a budding entrepreneur.
   
   Make sure you shop around and find someone who meets your needs without breaking your budget.

7. Learn your supplier’s policies. So, you’ve figured out your business’s needs and found a supplier that meets them.
   
   Make sure you know their purchasing and return policies in and out, this includes purchasing minimums, storage capacity, and limitations on distribution as well as other logistical items.
   
   Knowing these details is crucial because it will impact everything from your pricing to your overall reach when serving your clients.
   
   It will also help you plan for the future, budget your overhead, and stay on top of your goals.

8. Build a website. You are well on your way to starting the wholesale business of your dreams. Your products have been developed, your suppliers chosen, and now it is finally time to get yourself out there.
   
   Putting up a website is an absolute must in this day and age to let people know that you are open and ready for business.
   
   Make sure your website caters to exactly who your customer is. Remember that business plan? Well, now is the time to put it into action.

9. Start marketing. Once your website has been built, you’re ready to start marketing. Reach out to your clients with an email blast, post card, or even social media to let them know about the awesome wholesale deals you are offering.
   
   Running a special to kick off your product launch is a great way to whet their appetites.

10. Start selling. You’ve done it! With your website up and running, and some successful marketing, you can now begin selling and distributing your wholesale products.
    
    Make sure you keep a close eye on your sales so that you can replenish your stocks before things start going out on backorder. E-commerce makes selling wholesale all over the world easier than ever.

Top products to choose from when starting a wholesale business

Pet Care. Pet grooming and care products make the perfect wholesale business opportunity, because so many different kinds of businesses use them.

Groomers, retailers, grocery stores, adoption centers – you name it! It’s also a great avenue for private labeling.

Beauty & Skincare. If you’re chemistry-savvy and have a knack for formulas then you might find the beauty and skincare route to be favorable.

Beauty aficionados are always on the lookout for the next up and coming brand. Could yours be next?

Phone Accessories. Technology has become a staple in our lives, and people are always in need of phone cases, chargers, and other accessories. If you are able to enter with a competitive edge, selling these items wholesale could be lucrative.

Jewelry. Perhaps accessories of a different kind are more your thing. Getting into the wholesale jewelry business can take a bit of effort, but with the right connections there is money to be made.

Fashion. Clothing is another popular industry for wholesale distributors. In the fashion industry, everything from t-shirts to textiles is available for wholesale B2B opportunities.

Why choose Hygea Natural as your wholesale business supplier?

Hygea Natural’s got it all. We offer an expansive range of products to choose from, making it easy to launch a new product line or expand a pre-existing one.

Your clients are sure to love our premium, naturally-derived formulas – made only of the highest quality ingredients – and we all know customer satisfaction is good for repeat business.

Our team will work diligently to help get you set up every step of the way. There is nothing that the Hygea Natural wholesale distribution experts won’t do for our valued clients.

From top-notch product R&D to highly attentive customer care, we will make sure you have nothing but the best while working with us.

Our goal is to make it as easy as possible for you to start selling, hassle-free. We will even store and distribute all products ordered through us for you, dropshipping to anywhere around the world – so you don’t have to worry about a thing! Our team makes it easy to start your wholesale business right away.

Products to choose from Hygea Natural Wholesale Marketplace

Hygea Natural offers the finest variety of high quality products for the home. Our expansive line of pet grooming products is soaring in popularity, with new products being developed at a rapid pace.

Our soothing pet shampoos are a staple for any wholesale pet care line, and the innovative grooming wipes we’ve developed are sure to be a hit among your clients.

Complete your product launch with our non-toxic stain and odor remover, or work with us to develop a proprietary formula of your own! For those looking for more exclusivity, all Hygea Natural wholesale offerings are available for private labeling.

We also offer non-toxic pest treatment solutions, household cleaning products, and more!

Conclusion

Whether you’re new to wholesale, or looking to expand your product offerings, Hygea Natural makes it easy to get started and to remain on the path to success.

With product R&D assistance, global drop shipping, and private label capabilities, starting a wholesale business has never been simpler.

Our experts are standing by to assist you develop the perfect line of products to launch your brand and kickstart your endeavors in e-commerce and B2B sales. Contact us today for a wholesale business consultation, and start selling 1-2-3!