Are you searching for new opportunities to open your business?
Buying items on wholesale prices and selling retail is a perfect way to start your own business.
In theory, to buy wholesale and sell with the profit is one of the easiest ways how a person is able to earn money.
Nevertheless, there are many details in the process – more than just to get cheap and sell expensive.
So, let’s figure out how to sell retail.
Differences between selling wholesale and retail
Firstly, let’s figure out what kind of trade is considered to be retail.
It seems that everything is completely easy: when you sell many things you sell wholesale, and when you sell each item separately or only few of them, you sell retail.
However, the difference between wholesale and retail is actually not about it.
According to the law, you are considered to sell retail, if a customer uses purchases in his personal purposes instead of business purposes.
Though, being a seller you are not obliged to control what your customers do with those things.
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Besides, you cannot sell retail, for instance, trading equipment or sales registers, i.e. things, which cannot be used for personal purposes.
Algorithm of how to sell retail
Theoretically, it might seem easy to gain profit on wholesale and retail sales.
Nevertheless, there exist a few more peculiarities than to purchase cheaper and sell more expensive.
There is a list of things you must be aware of before you learn how to sell the first products.
Decide what you are willing to sell retail
First of all, you must study the kinds of goods before starting your retail business.
The success of your business is sure to depend on the choice of products for sale.
You must also be sure you are able to get these products for a low price and they are in high demand.
Only in such situation you are going to have a possibility to profit from retail sales.
You should be interested in things you sell retail
For instance, if you like cats and dogs, consider the possibility to sell food or accessories for these animals.
In case you are fond of sport, you might try yourself at selling sports clothes or equipment.
Mind that if you are really interested in certain products, you are sure to have enough enthusiasm and desire to learn how to sell them effectively and fast.
Define the delivery method
Another widespread way to sell anything is trading things without having them at your own store, i.e. dropshipping.
In such situation you should advertise and sell things but not store them.
This way, a seller sends a notice to the shipper about the order on a definite product and then it’s delivered straight to the client.
However, if such option does not fit you, you’d better search for the store and think how to open your new shop.
Find a wholesale provider
So, after you decided which items you wish to sell retail, and how you are going to do deliver them to the clients, it’s high time you found a reliable supplier.
Nowadays, the distributors offer wide range of commodities, among which you might find things appealing to you.
Besides, you must also pay attention to the following questions:
- Do you have enough money to buy at least the initial set of products to fix a certain price?
- Can you find a common language with the provider easily?
- Are there any complaints on this wholesale store?
The answers to these questions are likely to show you how to pick the proper wholesale enterprise.
You should discover the alternative wholesale warehouses
You must never restrict yourself with the “official” online wholesale dealers.
During the investigation you might find additional sources where you can buy the required things and pay less money.
For instance, you might have a possibility to get something cheaper than it was predicted because you were located close to the manufacturing establishment.
If it true, perhaps, you could talk to the enterprise about selling their products at retail.
6 ways how to sell retail
In retail trading the following ways of selling are implemented:
Selling things using self-service method
This way to sell things is one of the most comfortable for customers.
Self-service allows speeding up the operations of selling goods, increasing the through-flow rate and widening the volume of the sold items.
This way presupposes free access of the clients to the offered products and the possibility to look at them on their own, sorting them without shop-assistant’s help, which allows dividing the employees’ functions more rationally.
The selected items are paid for at the checkout points, where the cashiers control the sales.
This way is often used to sell most of the food commodity and nonfoods.
Products, which require been cut, wrapped and so on are sold in such shops through the service cabinets.
A shops-assistant has the following functions:
- consulting customers;
- goods outlay;
- controlling the goods’ preservation;
- doing the payment transactions.
The process of sales in such case consists of the following main operations:
- a client is met and told all necessary information about the products and services this store offers;
- he is given an inventory basket or trolley to pick the desired items;
- then, he chooses goods and his own and takes them to the checkout point;
- prices of the picked goods are added and the client receives a check;
- he pays for the products;
- all purchases are wrapped and packed in the bag;
- a trolley is returned to its initial place.
The list of these transactions may be broadened by selling technically difficult items, when the shop-assistant’s help is required (his consultation, checking the condition of the item and so on).
Selling things through the service cabinets
This method presupposes the following operations:
meeting the customer and discovering his needs.
Shop-assistants must be very friendly towards their clients.
Besides, positive impressions are left by the sellers’ appropriate appearance, tidiness and order in the store.
The inconspicuous defining of clients’ attitude towards models, style, etc reveals their needs.
offering and showing goods.
Showing the goods a shop-assistant mentions all peculiarities of each item.
helping to choose products and consulting.
Consultations include the information about goods’ purposes and the ways how to use them, what the consumption rate is and so on.
- offering additional items and new arrivals
holding technological operations, which are connected with cutting, weighting and measuring.
The qualification of sales staff influences greatly on the quality of operations and, consequently, on the level of service.
Other factors that influence are the organization and service of the employees’ working places.
- calculating operations
- packing and giving the purchases.
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Selling things by the samples
It presupposes the display of samples in the salesroom when the clients try them on their own or with the help of a salesman.
After the items are chosen and the client paid for his purchases the salesman gives him the goods, which correspond to the existing samples.
In such situation the goods are stored separately from the samples.
It is quite comfortable, because on the relatively small territory of the salesroom you can put on display wide range of samples.
You should learn how to use such method if you are eager to sell big equipment (household appliances, musical instruments, motorcycles), cloths and huge items (like furniture).
The displayed samples usually have labels, which have the information about the item’s name, article, sort, the manufacturer’s name and the price.
In case of necessity shop-assistants consult the customers and help them choose the required things.
Retail sales with open display
Customers have a possibility to study and pick the displayed items.
Things are displayed on the counters, stands, in piles or on the hangers and so on.
Shop-assistant’s functions are consulting the customers, showing them how to pick the goods, weight and pack them and sell the chosen items.
Payment may be in the cash desks, which are either in the salesroom or at the shop-assistant’s working place.
Selling items with open display is more comfortable because many customers have the possibility to study all the samples at once without distracting the salesmen from doing their job, which is showing how useful and great the goods are and providing the customers with information about them.
This method allows speeding up the operations of selling and increase the through-flow rate of the shop.
Moreover, it increases the efficiency of the workers.
The method is implemented at selling clothes, fancy goods, dishware and writing tools.
Selling things, which were ordered in advance
This method is convenient for the customers, because it allows saving time on shopping.
Mostly the things of everyday use are sold by the previously made orders, but sometimes other things may be sold this way too.
The orders may be taken in the shop, auto shop or at the place of work or even from the customer’s home.
They may be made orally or in the written form.
The main advantage of such method is that you save time shopping this way (you can order goods from far away and you do not need to drive there in order to get them).
Selling on the Internet
This method has the following peculiarity: a customer with the help of his PC chooses from the catalogues the required model of the item and at the same time he is able to pay for it using special credit cards.
Buying wholesale and selling retail will become a nice way how earn money.
Nevertheless, you must make right decisions and plan your trade.
Be ready to introduce your products to the market in order to allure many clients.
Your success will be restricted only by the list of goods you are going to sell and your enthusiasm in the new business.
That’s why, before starting new business, learn all details of how to sell retail.