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Unit 11: Wholesale Purchasing and Negotiation with Vendors

(a) Availability: The convenience of purchasing whenever you want. Online Wholesale stores Notes
don’t close. If you want to review the catalogues and evaluate a new product for the next
PO, i.e. at 4 a.m. you can. So, purchasing from an Online Wholesale store can fit nicely into
your schedule.
(b) Costs and Time Saving: No travelling required. You don’t have to arrange travel details,
flight, to drive or take public transportation, park, deal with mall traffic, bad weather, etc.
The relevant cost saving is clearly understandable. Furthermore the saved time becomes
precious, since it can be used for more profitable activities.
Conventional commercial procedure, improved by the Internet technology
You can still deal, as usual in the conventional international comer relation, with one on
one contact. All correspondence can be made through e-mails and when you get e-mails,
you have proof of what you were told in writing, and you have the name of the person
who sent it. Regarding the need of a phone call, the use of VOIP (Voice Over IP) technology
(e.g. skype), allow you remarkable advantages:

 money saving with regard the applied rate per minute
 easy transfer of files
 recording of the call and chat text
(c) Convenience: Online Wholesale Stores are really competitive, since the cost for the
conventional marketing of products (shows, paper works, etc.) is consistently reduced,
and the relevant advantage is reflected on the product prices.

(d) Wide Selection choice: The online wholesale store has more products/a bigger selection to
offer.
(e) Safe Transaction: Even using the Internet for the pre-order and negotiation phase. You
still will be able to safely conclude the contract and payment using the wholesale
conventional tools: PO, Letter of Credit, Pay Pal, etc., according to your need and the
agreement between the Parties.

11.1.1 Buying Wholesale Merchandise

Before you buy wholesale merchandise for your store, try to visit a competitor or a store selling
a product line similar to what you plan to sell. Browse the store’s product selection, making a
mental note of the brands they carry. What products seem to be selling well? Which items are in
the clearance bin? If you visit a similar store too far away to be a competitor, that retailer may
be willing to share with you the source of his wholesale merchandise.
Retailers can often find products to sell in their stores by searching online, joining buying
groups, using library resources and attending trade shows or buyers’ markets. A trade show is
one of the best places to buy wholesale merchandise for your store. Retailers can find many
suppliers, serving the same markets, and their product offerings. Conduct an online search for
tradeshows in your industry to find the nearest event.

Notes Trade shows aren’t open to the general public so be prepared to show proof that
you’re an established business such as a resale certificate, tax id, business cards or some
other form of license or permit.

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