If You Already Have These Signs, You Could Develop Your Online Store from Retailer to Supplier
Almost all online store owners starts business as a retailer. They take products from suppliers for resale in his/her online store. Although doing business this way is profitable, it does not mean online sellers should be satisfied with this reselling system. As the owner of an online shop, prepare long-term target for your online store as a supplier for other online shop is a good idea.
Venturing into online business as a retailer is a reasonable thing to do. However, developing an online store so that you can be a supplier to another online store is a business decision that needs to be taken. There are some "signs" that you can make a benchmark to assess your readiness to be a supplier to other online stores. If the online store has shown the following characteristics, then you would expand your business network as a supplier.
• a significant profit. The purpose why people want to buy in bulk is because he/she could get a rebate from the supplier. In fact, there are wholesale buyers who want a discount of 50 % of the selling price. If you want to be a supplier, you must be prepared to face this kind of reseller. Being a supplier means you have to sell the product slightly cheaper than the market price or the price that you would tag normally. You may get small profit from sales per unit, but you get consumers in large numbers in a single transaction with the retailer.
When the percentage of profit that you can get is great, It is the sign that your online store has reached a stable financial condition. In other words, selling at wholesale prices will not be a big problem for you.
• Difficulty in managing consumer demand. Another "Signs" which online store ready to become a supplier is when you face adversity of set order. Numbers in high demand indicates that the products are liked by consumers in large numbers. Being a supplier means that you do business with resellers. Doing this way can be described as "open branch". If the stock item in your online store is empty, you can refer a reseller that takes the product from you. By doing so, customers will not be disappointed and still get the products they want.
• Trying to do business with one reseller, then "success". Being a supplier does not mean you should do business with a lot of resellers at the same time. When the idea to develop an online store appears as a supplier, you'll want to experiment to do business with one reseller first. If this business relationship is succesfull, meaning that your online store is ready to become a supplier. Success doing business with reseller can be measured by the number of request/demand. If in a short time the reseller is able to sell a number of products taken from your online store, it means you are doing business with a reseller that has a good market share. The higher the consumer demand for the reseller, the more often it will ask products from your online store .
When you has been successful with one reseller, the you can develop by adding the number of resellers. It is not impossible that one day you might be a major supplier for many resellers, without the need to sell at a retail price to the customers anymore.
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