Wholesaling is the sale of goods, usually in large quantities to anyone other than your typical consumer. This may include stores or markets, shops or boutiques, or even medical facilities.
The idea of buying something at wholesale is usually to get greater quantities at a lower price for the purpose of reselling. This can be anything from food to medical equipment to even clothing and shoes.
One place that is often overlooked, but can be a very lucrative is wholesale shoes. With a product that has a significant markup, as well as a significant retail price, this is one place that wholesalers and procurement brokers can stand to earn quite a bit of profit.
Considering that most wholesale items are intended to be resold, most states will not charge sales tax on wholesale items, only the final sale. Some taxes may be required at the wholesale level, but at a much lower rate.
There are many companies that have made their brand with wholesaling fashion shoes. They buy in bulk from the manufacturer or another wholesaler, have stores that are much more like a warehouse than a retail store, and sell at a discounted price to the average consumer. This however is not where the majority of profit is made in wholesaling.
This method, which is used in more than just wholesaling fashion shoes, is very profitable on both the wholesaler and the procurement agent. The wholesaler has the benefit of being able to sell large quantities, although at a lower price, it is guaranteed income in a large quantity. The procurement agent has the benefit of buying in bulk and then setting their final price to the customer.
Wholesale fashion shoes are lucrative in the sense that the shoes are made for just pennies on the dollar. The wholesaler purchases from the manufacturer at just slightly above cost. This gives copious amounts of wiggle room when it comes to setting the price to the procurement agent. Generally, the greater quantity the procurement agent purchases, the greater discount they will receive. Imagine if a $200 pair of high end fashion shoes is actually made for just $2. If the wholesaler purchases thousands of pairs of these shoes for $10 per pair. This gives room for the manufacturer to make a profit and $190 of wiggle room to sell to the procurement agent to make sure the wholesaler and the retailer are also making a profit.
Although it is not rocket science, it is still numbers. There is great profit to be made in wholesaling on all ends. Well, except the final consumer.
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