Why It Is Good To Have Back-Up Supplier
As you get more familiar selling more things online in places like eBay and Amazon you will find that you are buying more and more product. Quite often when you look back on your records you will find that around 90% of your general stock will come from the sources. But before we go any further I just want to out line the main places where you can source and buy stock.
1) The first place most people go to is a wholesaler or cash and carry. Here you can buy stock in smaller amounts and still make a profit. The profits will not always be as high as the method, but this way is safe and you are not paying out a lot of money.
2) Another area where you can go and buy stock is from liquidators. Liquidators are people who buy up bankrupt stock and offer it at a cheaper rate.
3) The third main area is from importers. This area will often mean investing large amounts of money to pay for stock, but you will get it at a cheaper rate.
4) The fourth and last area is direct from the manufacturer. Again this could mean a large investment in stock and storage.
Now all the above work very well and each level will suit each ones needs. Some people may just stick with one level while others will start off small and then move up till they are buying direct from the importers or from the manufacture. But I want to through something else into the pot.
You have found a good selling line and are buying weekly from your supplier, then one day your supplier lets you down. This can be for many reasons - their supplier let them down, a fire, they just let you down or the supplier has stop trading. Which ever one it is, is sad for the supplier but more important you have been let down big time. You have orders you cannot fill and an empty shop.
So a good way round this can be to use a few suppliers for the same item, or know where the suppliers are so that if you are let down, you can make a few phone calls and within hours or days you will be back in business. Also by using several suppliers to source your product if you get a sudden rush of orders and your normal supplier does not have enough stock, you can again use supplier number two.
Remember you are in business, and keeping tabs on suppliers and knowing where to get stock at very short notice is up to you. And it is always good to have a back-up supplier for you will get their mailings and catalogues, and one day you might see a new item that your main supplier does not carry.
1) The first place most people go to is a wholesaler or cash and carry. Here you can buy stock in smaller amounts and still make a profit. The profits will not always be as high as the method, but this way is safe and you are not paying out a lot of money.
2) Another area where you can go and buy stock is from liquidators. Liquidators are people who buy up bankrupt stock and offer it at a cheaper rate.
3) The third main area is from importers. This area will often mean investing large amounts of money to pay for stock, but you will get it at a cheaper rate.
4) The fourth and last area is direct from the manufacturer. Again this could mean a large investment in stock and storage.
Now all the above work very well and each level will suit each ones needs. Some people may just stick with one level while others will start off small and then move up till they are buying direct from the importers or from the manufacture. But I want to through something else into the pot.
You have found a good selling line and are buying weekly from your supplier, then one day your supplier lets you down. This can be for many reasons - their supplier let them down, a fire, they just let you down or the supplier has stop trading. Which ever one it is, is sad for the supplier but more important you have been let down big time. You have orders you cannot fill and an empty shop.
So a good way round this can be to use a few suppliers for the same item, or know where the suppliers are so that if you are let down, you can make a few phone calls and within hours or days you will be back in business. Also by using several suppliers to source your product if you get a sudden rush of orders and your normal supplier does not have enough stock, you can again use supplier number two.
Remember you are in business, and keeping tabs on suppliers and knowing where to get stock at very short notice is up to you. And it is always good to have a back-up supplier for you will get their mailings and catalogues, and one day you might see a new item that your main supplier does not carry.
posted by Arthur Wang at Tuesday, February 16, 2010
