Wholesalers are responsible for purchasing products directly from manufacturers in large volumes and selling them to distributors, retailers, and others in smaller volumes. Buying in bulk is the most cost-effective method of filling store shelves with your favorite merchandise. Here are several pros and cons of buying products in bulk:
advantages
Low Cost – The ability to buy from local or foreign wholesalers means that merchants may pay much less than they would expect if they were buying individual items. To get the best prices you need to buy wholesale. Wholesalers are rarely willing to sell small quantity or individual items to merchant members or consumers.
Easy to use: Retailers prefer the simplicity of buying in bulk because it is possible to buy a wide range of products from one destination. Wholesalers have the ability to stock products from multiple manufacturers, making it easy to choose the right products to meet specific needs. Also, buying from one place saves a lot of time by not having to travel to different stores.
Negotiate the price: Wholesalers are likely to agree to negotiate the most attractive price for those merchants who visit frequently. This has the advantage of helping both the wholesaler and the trader by attracting a repeat customer while offering the most attractive prices for repeat buyers.
Shipping: Most large wholesale centers provide a shipping service for larger orders. Although this may incur a small charge, it is still a convenient option for businesses that do not have regular access to adequate transportation.
cons
Storage space – If a merchant plans to buy in large volume, it is essential to have enough storage space to hold the products until they are sold. For those who do not have sufficient on-site storage space, it may be necessary to use rented space, which will increase overall business costs.
Online Sellers: Not all wholesale centers are willing to work with smaller online merchants. This means that the most attractive deals are only available to the big joints or established retailers.
High investment: Before being in a position to buy wholesale, it is necessary for the buyer to have a substantial saved capital. Most wholesalers have a set minimum order limit to ensure products are purchased in volume, which could present a problem for the new small business just entering the retail business.
