How to do wholesale business in China

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(Free-Press-Release.com) September 25, 2009 -- How to do wholesale business in CHINA
------Difference between retail and small-amount wholesale

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How to do wholesale business in China

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1.Amount. To make a wholesale,a relatively large amuont of goods should be bought,but small and big wholesalers requires different minimum amount,which ususally should at least iucludes all articles of a style .Now,some self-clamed internet wholesalers even provide “single-item purchase”like www.modesupplier.com(they are actually profiteers).Currently, most small-amount wholesale,especailly those made on intetnet, approve of“mixed wholesale”,which allows you to choose the size and colour yourself as long as the total value or items meet their demand.And I don’t have to tell much about retail which is to sell one item at a time.
2.Price. Wholesale mainly depends on the large number sold to make profits. The price is the lowest in large-amount wholesales and a little bit higher in small-amount ones.There is ,gererally speaking,a considerable gap between purchase price and comsumer price often with the former being a quarter,40% or 50% of the latter.The ratio varies with different companies.

3.Styles.In retail,commodity should be of a small mumber but of various types so that the customers can easily find ones to their taste and overstock can be avoided.This is why more and more retailors go for small-amount wholesale and internet wholesale. But for wholesalers, because they have to stock certain amount for each style,if there are too many styles,then a great deal of money is demanded.In reality, hundreds of thousand yuan can often be made by only selling one style if it sells overwhelmingly well.
4.Profit.The profit for single unit in retail could be ten times or even hundred times of that in wholesale.Retail loses out to wholesale in number,however,the proceeds from selling a few items can be enough for maintaining a small retail store and many stores can still make some money.

5.Risks.Risk is known to coexist with gain.Wholesale business needs much more money and attention than retail,and the risk is also far greater.If it goes well,you can roll in bundles of cash,but if it doesn’t,you may lose most of your investment.

The five aspects above,although not elaborate,tells pretty much everything. Only when you become a wholesaler yourself can you know other details and feel the difficulty.Ordinarily speaking,the off-season is June,August and September.But this year is different,with more unexpected things having happended,some commodities are in short supply, the fact that some people are still producing goods also shows it’s not dead season for this business.In fact,you may make money more easily for entering market now.The key is that what kind of goods you can provide.

More information can be found online at http://www.modesupplier.com