What are the benefits of bulk ordering?

Small businesses that find reliable wholesalers can benefit from better deals and buying efficiencies.

The primary benefit of bulk ordering is the ability to save money. Wholesalers offer better details on multiple product lines. “Wholesale prices are always lower than buying individual items. Buying in bulk also means fewer orders per year and therefore lower shipping costs overall,”  Fewer orders mean bulk ordering is also more environmentally friendly.

Wholesalers also help retailers manage inventory more easily. They do bulk ordering on behalf of retailers, allowing merchants to buy smaller quantities at a fair price. This advantage helps with inventory management, storage costs, and demand forecasting.

There are wholesalers (usually manufacturers themselves) who are happy to sell their items in smaller quantities, especially when they’re dealing with a retailer for the first time.Ying Lin, Shopify

Finally, bulk ordering through a wholesaler can also improve the reliability of your supply chain. “Wholesalers interact with multiple suppliers and drop the ones that are terrible,”  “By dealing with a wholesaler, you’re cutting out the interactions with shady or bad suppliers.”

What are the risks of bulk purchasing?

Bulk purchasing isn’t without its challenges. Bulk ordering requires retailers to order a certain minimum; if demand doesn’t match that minimum amount, inventory can expire or become obsolete.

Likewise, it’s worth noting that wholesalers often add a small markup to the manufacturer's price. While bulk ordering is more cost-efficient than ordering single products, it’s not as affordable as ordering directly from the manufacturer. Likewise, bulk purchases require more upfront investment, reducing available cash flow for other business needs.

Finally, make sure you work with a reliable wholesaler or supplier that can deliver high-quality goods on time. There are many different types of wholesalers; it can take time to find a partner with the right business model, connections, and standards to meet your needs.

How to choose a wholesaler

Selecting a wholesaler takes time and research. Consider factors such as location, pricing, and years of expertise. “Once you’ve compiled a list of wholesalers you’re interested in, Google them and read online reviews from other retailers who have worked with them. That will give you a good sense of whether or not they’re worth reaching out to,”