One of the biggest secrets of wholesale sourcing is that some wholesale sources aren’t wholesale at all. They’re not secret, they’re not inaccessible, and they’re not available only to those who know the secret handshake.
We’re talking about your local buying clubs, factory outlet stores, and even the ever-present Wal-Mart. Yes, it’s hard to believe that an online retailer could just buy products at Wal-Mart, and then re-sell them on an online shop, but it’s done every day. It’s because companies like Wal-Mart have completely changed the wholesale equation. Wholesalers price their products based on volume. Larger retailers will pay the wholesaler a lower price than will the smaller retailers, and nobody pays the wholesalers a lower price than Wal-Mart. Because of their immensity, Wal-Mart is able to beat other retailers on price–and in some cases, their retail price is actually lower than what a smaller retailer is paying wholesale.
This strategy is decidedly low-key, and suitable only for smaller online retailers. Nonetheless, there have been plenty of entrepreneurs who have made an attractive second income out of simply buying items at the local Wal-Mart, Sam’s Club, or Big Lots, or at a clearance sale at any local department store, and reselling them on eBay. It sounds too easy to work, but it does. Once your business grows, this strategy doesn’t scale, and you’ll need to scope out other sources–but it’s a valid place to start if you don’t have a lot of time or a big budget.
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