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Advantages And Disadvantages Of Buying Wholesale

Even if you are starting a business or currently running one, you always consider of buying wholesale products for your business. However it is important to remember that buying wholesale products produce both benefits and disadvantages.

1. If you buy wholesale products, you have complete control over inventory. You can are aware of the products quantity on stock so you can offer what is available.

2. You have better profit margin since you will be purchasing the items at a lower price giving you competitive stand in the market.

3. You have control over the shipping process. You can ensure that the products ordered are delivered in a timely manner and that products are packed properly and safely, which lessen customer complains.

4. You can sell your products to retailers as wholesale as well. Since you can buy items in bulk, you have advantage of selling them in bulk as well.


1. You need to consider storage space. If you buy products in bulk, you need to have a bigger space to store your products. If you need to rent a storage space, this will add to your overhead cost.

2. It requires a large amount of money buying wholesale products. Since manufacturers’ require minimum order quantity in order for you to take advantage of the wholesale price, you need to shell out a large amount of capital.

3. Most suppliers don’t deal with online sellers. You need to be an established shop or retailer to be able to take advantage of wholesale products.

4. It requires a lot of your time doing a wholesale business since you will be responsible with shipping, inventory and marketing the products unlike with drop shipping.