What Does Wholesale Mean? – Wholesale Guide

Source: DHgate, Tag: E-Commerce Tips

What does wholesale mean? Find out the ins and outs of wholesaling, and learn how to source the best wholesale products on DHgate.com.

• DHgate.com is an e-commerce platform based in China, where you will find wholesale products at the most affordable prices. This massive online marketplace has been in existence since 2004, connecting over 2.3 million wholesalers with more than 36 million shoppers from over 223 countries and regions around the world.
  The company has since emerged as the best B2B cross-border e-commerce platform in China and globally. While the company was designed to sell wholesale products to retailers around the globe, individual buyers can also find single items at discounted prices, making it a perfect marketplace for both your wholesale and single item purchase.

• What Does Wholesale Mean?
  Wholesale is about buying or selling goods in bulk but at lower prices. Most often, sellers are manufacturers selling their products directly from the factory, thereby still making profits. On the other hand, buyers are retailers who intend to resale the products at relatively higher prices for profits. DHGate plays an integral role in connecting the buyer with the seller. At this juncture, it’s essential to note that the company does not sell or ship any product, but rather individual suppliers do.
  Most products at DHGate don't have a minimum order, making it a perfect platform to shop for yourself or drop ship your ordered goods directly to your customer. The other advantage of this platform is that it does not have a minimum order, meaning you can buy a single unit as sellers are flexible enough to sell in bulk or a single unit to either businesses or individuals.
  There are no charges for joining and using DHGate. You are guaranteed to enjoy significant unit cost savings by ordering your merchandise in bulk. You will experience unlimited suppliers who offer high-quality products at pocket-friendly prices on this platform. Further, DHgate provides its customers with many coupons, especially when they make huge orders. This marketplace provides the lowest possible prices you can ever get when buying in bulk. The prices at DHgate are so low that renowned online shops like eBay and Amazon source some of their items from it for resale at higher profit margins. This business precisely indicates how much you can save when you buy your goods from DHgate at wholesale prices.
  What to Look for at Wholesale Prices on DHgate?
  To get the actual value of the above wholesale meaning, visit DHGate to experience a wide range of items, varying from high-end electronics to the latest fashion for everyone at shockingly low wholesale prices. The following are the major categories of things you can conveniently buy from DHgate on wholesale.

  • Cell phone and Accessories: here, you will get access to an unlimited supply of multiple brands of new and original refurbished phones and accessories. Be sure to look out for mobile phone accessories such as Type-C cables, phone chargers, and more. Further, consider our wearable technologies that include smartwatches to enhance your sense of fashion.

  • Electronics and Cameras: this catalogue offers you a wide variety of electronic products, including portable and home video & audial devices, E-cigarettes, binoculars & telescopes, and the most advanced digital cameras at wholesale prices.

  • Sports and Outdoor: our sports catalogue is suitable for every athlete. You will find quality sports products like boots, shoes, jerseys, water sports equipment, outdoor gear such as camping tools, cycling accessories, and other sports-related tools at wholesale prices.

  • Health and beauty: this category seeks to meet all your skincare needs. It offers you high-quality products for skin treatment, salon, and manicure. You will also get body piercing products sex tools, among other products that will enhance your elegance at a low cost as all these products are offered on a wholesale basis.

  • Shoes & Accessories: this catalogue offers you all types of shoes for men and women, young and old, at wholesale price. Some of our shoes include special-purpose wear like height-increasing shoes, men's official and casual shoes, women's official and show shoes, teenagers' fashionable shoes, and all shoe parts and related accessories.

  • Home & Garden/Lighting: this category will get you access to unique home and garden accessories such as home décor, party, and festive supplies, farm equipment, quality lights, and lighting equipment at affordable wholesale costs.

  • Toys &Gifts / Baby & Kids: this catalogue treats you to various accessories, including baby & kids clothing, a range of toys that include novelty, stuffed animals & gag toys. You will also get fashionable baby shoes like the baby fast walkers and more at wholesale offers.

  • Jewellery & Watches: In this category, you will find jewellery to wear on any part of your body and for varied occasions. For instance, we have a wedding and fine jewellery, necklaces & pendants, loose beads, and brooches. Additionally, you will have unlimited access to watches and dress watches such as bracelets and gold watches.

  • Wedding & Formal events: this catalogue offers you elegant clothing for special occasions. They include wedding dresses and accessories, groom wear, and party supplies that have decorations, flowers, and more at wholesale prices.

  • Hair & Styling: visit this catalogue for beauty enhancement products like hair extensions, wigs, hair care products & styling tools. Further, there is a wide variety of saloon accessories such as trimmers and related products available at affordable wholesale prices.

  • Computer and gaming: if you are a computer and gaming enthusiast, this catalogue is a must-visit to get access to high-quality new and refurbished computers for your home and office functions. Many computer accessories like modems, Wi-Fi founders, networking, and communication tools are also available. As if that's not enough, gaming lovers are treated to the latest games and accessories that include nostalgic game players at wholesale offers.

  • Bags & Fashion: this category offers fashion lovers high-quality sunglasses, caps, belts, and wallets. There is also a wide range of bags, including school and waist bags, among other fashion accessories.

  • Automobile & motorcycle: visit this category for high-class auto electronics such as vehicle & motorcycle parts, auto parts, and car cleaning accessories.

  • The general category catalogue: this category will grant you access to an assortment of high-quality school and office supplies, household equipment, video surveillance appliances, among other unlimited equipment and accessories for your general purposes at wholesale prices.

• How Does Wholesaling Work on DHgate?
  In summary, selling wholesale on DHgate involves the basic steps of:

  • Registering for a wholesaler account.

  • Finding high-demand items for sell

  • Sourcing the goods from manufactures

  • Establish and optimize a listing that runs best against your competitors

  • Launch and promote your goods.

  • Manage your inventory and sales to grow your business.

• DHgate requires all sellers on its platform to follow some business setup practices. For instance, wholesalers are required to have a wholesale license or business license, depending on your state. In this regard, ensure that you are aware of your state's requirements to get a wholesale license.
  How is Wholesaling Different from Other Models?
  At a glance, wholesale appears similar to other models on DHgate; however, there are several differences as listed below.
  Wholesalers versus Retailers
  Retailers buy goods from retail sites at reduced prices to resell on DHgate. They are similar to wholesalers in that they buy branded products. However, wholesale involves buying in bulk rather than making individual purchases like retailers.
  Further, wholesale involves a direct negotiation of rates with suppliers and manufacturers, while retailers buy discounted for reselling.
  Wholesale Versus Private Label
  Wholesalers buy existing branded goods while private label sellers generate branded items to sell on DHgate. With this difference, wholesalers do not have to create new item listings. Instead, they include their offer in the current product listing. On the contrary, private label sellers have to generate their item listings.
  Wholesale Versus Dropshipping
  Dropshippers list products for sale on DHGate. But the purchase is made by placing the order through the supplier, who fulfils the order on their behalf. On the other hand, wholesalers have their inventory and are responsible for fulfilling their orders.
  Why Sell Wholesale?
  For a deeper understanding of wholesale meaning, it's critical to consider some of its pros and cons.
  Pros:

  • Product demand: with wholesale, you can sell existing products that customers are already looking for. This spares your business the cost of marketing.

  • Quick to get started: wholesale is one of the most straightforward business models to set up and get running. Research shows that over 60% of wholesales needed about six weeks to operationalize their enterprises.

  • Profitable: the research indicated that 57% of wholesalers started making profits in less than two months, compared to 65% of retailers who waited six months to start making profits.

  • Scalable: wholesale does not involve building a brand or creating a list; therefore, you can focus on growing your business by building a team that manages your daily operations.

• Cons:

  • Competition: almost every listing you will think of placing your offers contains multiple wholesalers. And since the only equalizer you have is to lower the prices, the price wars can be a race to the bottom.

  • Up-front cost: wholesale requires that you buy goods in bulk, making it more expensive to start than retailing or dropshipping.

  • Research: wholesale business requires that you conduct a lot of research which is costly and time-consuming. You will need to do multiple explorations of product opportunities to get a supplier that will guarantee a steady supply of the items.

• How to Earn by Selling Wholesale Items on DHgate

  • Find the best item to sell wholesale

• Decide on a product that is not flooded with private label sellers. These sellers usually block wholesalers from offering similar items on their current listings.
  Look for renowned brands because you do not have to incur marketing expenses for a company that does not belong to you. Note that the benefit of wholesaling is raiding on successful brands.
  Use free sales estimator to determine the product's demand based on daily or monthly sales. This will help you to settle on items that have the possibility of selling hundreds of units daily.

  • Find reliable suppliers

• Getting suppliers for wholesale products varies from sourcing private label items. Typically, private label sellers use supplier databases to locate reputable suppliers in China. However, you will have to contact the brand owner directly for wholesale. Once the brand owner has accepted your request, you can start placing orders and commence your wholesale business as soon as possible.

  • Negotiate with suppliers for a better deal

• Once you decide to contact the supplier, be sure to showcase how you will add value to their brand. Be reminded that the suppliers are big companies that deal with new product development, international marketing initiatives, and more. Therefore, you are offering to expand their brand and enhance their sales. Please make use of these as a fantastic opportunity to negotiate them.
  Further, you will assist them in selling through DHGate, since they hardly find the time or the knowledge to do it by themselves.
  Here are some strategies you can use to add value:

  • Identify any challenges that you can help them overcome. For instance, if their brand has a poor image, offer how to help them improve it.

  • Demonstrate how you can make their brand more attractive to consumers.

  • Identify brands that have little interest in selling their items through DHgate and convince them how they will enhance their DHGate experience.

Get started with Wholesale Business Now.
If you are interested in selling on DHGate but are unwilling to engage in private label or dropshipping, then wholesale is the best alternative. In addition to what is mentioned above, selling wholesale involves making profits in half the time it would require a private label seller to be profitable. Therefore, don't hesitate to use jungle scout to explore these opportunities and start your wholesale business as soon as possible.
While wholesale involves selling or buying goods in large quantities, it gives both the seller and the buyer an excellent opportunity to make money. Despite requiring a high initial investment, selling or buying wholesale has proved more profitable than engaging in other business models like dropshipping or private label. Thus, you are encouraged to use this guide to develop a deeper understanding of wholesale as you may want to venture into this lucrative and fast-growing business in the near future.