Successful Online Selling
 

10 Tips for Negotiating with Wholesalers

negotiating with wholesalersWhen you are growing your product line for your eBay store one of the most important parts of the process is how you negotiate.

How you negotiate will determine your selling price, profit point, and be important in helping you get the sales over your competitor.

Here are some tips that have been proven to help you on how to negotiate properly with wholesalers around the world.

1. Have realistic expectations. You want a good deal and that is understandable, but remember that the wholesaler also has to make a profit.

You don't want to start out unrealistically low because it will either stop negotiations dead in the tracks or you could end up going in circles without ever reaching an acceptable deal.

2. Make sure that you have found a way to communicate clearly if there is a language barrier.

The last thing you want to have to address is why the deal you believed you negotiated is not what you are getting. Simple, direct communication is the best policy to keep negotiations about the price and product.

3. Investigate what the shipping costs are for the products you wish to purchase. Make sure the great deal that you are receiving upfront is not being lost by exuberant shipping costs. This is a crucial shipping tip for eBay sellers to maximize profits.

Cost of shipping for goods received is part of your overall analysis that you need to do when determining a selling price.

4. Before you start negotiations make sure you have an idea of what the wholesalers competitors are offering on similar merchandise.

The more information you have on the product and the wholesalers who distribute it the more leverage you have in negotiating a deal that is fair to both sides.

5. Do not play games. No, you don't need to lay all your cards out on the table at one time but nothing breaks down a negotiation quicker than tricky game playing.

Depending on which wholesaler you are negotiating with it could be offensive or just unacceptable. Always keep in the forefront of your mind that this is a business transaction.

6. Know your acceptable price point. If you are not going to get it, gracefully bow out of the negotiations and tell the supplier that the numbers just do not fit your price point. This will do one of two things for you.

It will either end the deal so you can move on; or the wholesaler will accept your price point. It's a way for both parties to feel like they have won.

7. Do not pay a wholesaler in full for merchandise that has not yet been inspected. Make sure you negotiate partial payment upon order and final payment upon inspection.

A great way to make both you and the wholesaler feel secure is to have the funds held in an Escrow (https://www.escrow.com/index.asp) account for the products.

8. Negotiate returns with the wholesaler. You want this option in your agreement. You do not want to be stuck with products that are easily broken or of poor quality.

You would have to refund your customers the money for those products or risk bad ratings. Don't forget, the wholesaler will most likely have a go to source for bad products to get their investments back.

Manufactures know that warranties are an important part of their business if they want to sell their product.

9. If your transaction requires a currency conversion make sure you know what that conversion is. If you calculated something at $1.00 but it actually ends up being $1.50 that is a large difference and can turn a very profitable item into one that will only break even.

10. Research ratings and feedback regarding the wholesaler you are working with. If you are new to your eBay business get some tips from those who have been in it awhile by visiting forums and discussion boards.

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