The role of wholesalers in the sales and distribution of goods cannot be turned away, hence, the need for wholesale business ideas.
Wholesale business ideas involve buying products directly from manufacturers and selling in bits to retailers. Although it’s a business model that may require a lot of money to pull off, it is highly profitable and ever-green since you buy in high quantities.
What’s good about the business is that you don’t need so much experience. With basic business knowledge and a strategic location for your products, you are good to go.
This article highlights ten profitable wholesale business ideas you can venture into with at least an average capital size.
1. Clothing and Textile Business
It’s no surprise at all to see the textile business appearing on this list. Aside from being one of the most lucrative wholesale business ideas one can go into, it is also a traditional and global business venture.
Clothes that are necessities for humans are made from textile materials. Therefore, you can be sure of high demand.
For starters, you may decide to focus on sales of synthetic fibers, which are mostly cheap and more in demand. Perhaps, if you are eco-loving, then you could choose to sell natural fibers.
More importantly, research the market demand to understand what people want and source for manufacturers with good quality products.
Trade fairs and social media networks are an excellent way to sell more of your products and connect with retailers.
2. Sales of Food and Agricultural Produce
Just like textiles, food is another necessity for humanity, and its broad nature also means you don’t fall short of customers if you’re ready to supply.
There is an array of options to choose from in this line of business. Some of which include:
- Raw food
- Processed food
- Fertilizers (organic or inorganic)
- Pesticides and insecticides
- Sales of wood, etc.
If you are interested in sales of raw food, identify the food you’d like to specialize in, approach commercial farmers, get a bunch of retailers to sell to, and supply to them once you get the product.
3. Jewellery Business
The jewelry industry is undoubtedly one of the most lucrative wholesale business ideas to consider as an entrepreneur. It has proven over time to be a smooth money-making venture.
However, the only downside is that there is no room for small start-ups. It would help if you had a relatively large capital to get started, not to mention that having a solid knowledge about jewelry and how the market operates gives an added advantage.
Secondly, you need to locate a reliable supplier in terms of delivery and authentic products.
Generally, so long as you get a good location, you’re sure to get patronage. However, to increase sales, build a solid online presence as the possibilities of social media are endless.
4. Sales of Stationery
Unlike the jewelry industry, wholesalers of stationery do not require much capital. You may look into sales of stationery equipment like;
- Office equipment (stapler, and paper clip)
- Envelope and organizers, and so on
Furthermore, you may decide to take advantage of the volume of customers you can get when you deal in all. Regardless of your choice, the demand for stationery items will always be there because most of these items are exhaustible so they are usually replaced.
Lastly, you may liaise with book owners or authors to market products and earn a commission for each sale. That way, you may not need any capital to start your wholesale business.
5. Automobile Business
Another relevant wholesale business idea to consider is the sales of automobile and automobile parts. Although it is capital intensive, the opportunities within this business venture make it worthwhile.
Also, depending on your pocket, you may choose to explore the sales of luxury cars, used cars, trucks, lorries, etc.
Furthermore, a good knowledge of cars and automobiles is needed as you need it to convince prospects. Also, you may choose to identify with a particular car model and be known for it, or you may choose to deal in different models.
In addition, the turnover rate in this line of business may be pretty low, so selling automobile parts like stereos, speakers, and parking cameras would give you leverage for more patronage and profit.
Most importantly, offer top-notch customer service and delivery as your business would heavily rely on that to stay afloat.
6. Sales of Building and Construction Materials
This is one ever-green wholesale business venture because civilization would never stop. New buildings are constantly being erected and old ones renovated, which translates to consistent turnover for you as a wholesaler.
Although knowledge in construction-related activities is necessary, it does not deter you from venturing into this type of business. Moreover, you could understand the building and construction business by reading blogs or watching YouTube videos.
What is more important is establishing your business in a constantly developing location, with access to good roads and one that has a lot of traffic.
7. Sales of Drinks and Beverages
There’s not a lot of wholesale businesses that can boast of huge turnovers like the beverage and drinks business. Coca-Cola alone does more than 1.9 billion servings per day in over 200 countries, worldwide.
Therefore, the market for drinks and beverages is large and the opportunities for money-making are enormous. Such opportunities include:
- Selling of soft drinks
- Sales of beer
- Wine business
- Tea and coffee among others
No matter what you go for, sales is sure. In addition, choose a busy location with heavy traffic and easy transit. You may further acquire a truck to deliver goods to retailers to cut costs and increase income.
8. Electrical and Electronic Appliances
The high demand and wide array of electrical items make this wholesale business idea highly profitable.
Interestingly, you do not need much expertise in electronics to start this business. However, basic knowledge about them will not only help you know the best products to stock, but it will also help you understand how to properly set up your wares so they don’t get damaged before they are sold.
You can get started by selling any type of appliance such as;
- Small household equipments (electric kettle, cooker, blender, coffee maker, etc)
- Consumer goods (TV sets, home electronics, radio, alarm clock, computers, etc)
- Or major appliances ( refrigerator, washing machine, water heater and so on).
9. Cosmetic Business
Starting a wholesale business along the cosmetic line is one of the best entrepreneurial decisions you can make.
It is one of the easiest and most reliable wholesale business ideas to venture into. Both women and men are inclusive in your market and with proper marketing and a good location making money from wholesale deals in beauty products is sure.
You may choose to go into any of these;
- Skin care products
- Hair products
- Or perfumes
Also, you may increase patronage by offering discounts for more sales or you could sell on credit and offer discounts for prompt payment.
Additionally, social media networks like Instagram and Facebook are good platforms to push your business. Lastly, ensure to source quality materials only.
10. Sales of Mobile Phones and Accessories
The telecommunications industry remains one of the most lucrative industries globally, and it can never go out of fashion.
Furthermore, Most humans are tied to their mobile phones. And that is why there is a market to serve regardless of the number of mobile brands.
Hence, looking into the sales of mobile phones and accessories is a great idea. As a beginner, it would be best if you start with a mobile phone brand then increase your capacity from there but you may work with as many brands as possible if you have the means.
However, before starting, look out for locations with traffic and enough mobile phone retail stores that can patronize you.
How To Start A Wholesale Business
There are typically three ways to go about starting up a wholesale business, or any business for that matter, which are;
Buying Existing Business
This can be risky and quite expensive depending on the size of the business portfolio. However, the good part is that you buy the name and can tap into its customer base.
Starting From Scratch
Starting from scratch is often seen as more original because you are building a reputation from scratch. Also, it means that you will be able to put in the required effort for your business to grow. Although you take on all of the business losses, all the profit is also yours. Furthermore, you can dictate how your business will run and the strategies you wish to employ in pushing your business.
Buying Into A Business Opportunity
Buying into a business opportunity is one that involves the entrepreneur identifying a quick or seasonal opportunity and taking advantage of it. As an entrepreneur, some opportunities for money-making may present themselves in form of a problem, seasonal event, or happenings; it is wise that you identify them and explore wholesale business ideas as a tool for making money from these opportunities.
Generally, before starting your wholesale business, there are quite a number of steps to follow to ensure its success. These steps are as follows:
- Pick a business to start
- Study the market need
- Research your competitors
- Write a business plan
- Get a good location with traffic
- Source for retailers
- Source for fund
- Establish your business
- Invest in marketing
- Optimizing your business strategies to improve performance
Is wholesale a good business?
Definitely. Wholesale businesses are important to manufacturers to help them reach more consumers. Also, they sell in bits to retailers who may not have the funds to buy in large quantities from the manufacturer.
How much does it cost to start a wholesale business?
To start up most wholesale businesses require $1000 — $10000 capital depending on the type and nature of business you wish to venture into. This amount is the initial capital to start up, as time goes, you might need more or less to run the business.
What is the best wholesale business to start?
The best wholesale businesses to start include: Sales of food and agriculture produce, textile and clothing business, and sales of drinks and beverages
The wholesale business ideas cannot be erased anytime soon simply because of how much good they do for manufacturers and retailers alike.
However, getting started is not an easy feat. Therefore, I advise that you go into sales of stationery if you do not have so much capital for your wholesale business.
Secondly, you can look into the agriculture or cosmetic business as it is highly profitable if you have the financial backing for it.
Perhaps you do not have the funds required for a wholesale business venture, you could check out small business ideas to start a business with little capital.
I hope you got value.
Thanks for reading.