Essential Tips To Buying Wholesale For Your Ecommerce Retail Inventory
E commerce success depends greatly on smart wholesale buying. However, buying clothing online in bulk is not as easy as it seems. You need to decide what a fair price is and know which products to buy if you want to grow your business. The following are some basic rules to buying wholesale for ecommerce retail:
Understand your customer
Your customer determines the kind of products that you stock up. If you load up your inventory with items that your customers are not interested in, your business will fail. When buying wholesale, you need to be your customer. You need to understand the things they need. This is often determined by age, gender, size, occupation, region and current fashion trends. If you do not have a good understanding of these factors, you may end up with a lot of products that do not sell.
Always stay on top of your inventory
It is always important to be on top of your inventory whenever you want to make new purchases. You need to be aware of what you already have and what is missing from your current stock. You also need to understand your selling rates for key products or categories every week or month. This sales velocity will guide you on how much you need to re-stock. You should also stay keen on seasonal peaks and capitalize on this for instance with winter clothing or summer clothing. Look out for product gaps and fill in items that should be in your inventory and are missing.
Constantly measure and analyze your business
Whether you run a huge retail shop or a small start up, you need to constantly analyze and measure the performance of your business. Keep track of your figures including inventory changes, cash flow and selling rates. You can even enlist the services of a business analyst every once in a while for advice on the progress of your business. Strategy advice from a business professional can go a long way in growing your eCommerce business.
Keep an eye on the competition
Before you buy new inventory, pay attention to what your competition is selling and how much they are selling it for. It may not be worth the trouble selling items that your competitors are selling at slightly more expensive cost. You can stay relevant to the same target customer base without having to sale the same old cliche items.
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