Successful wholesalers know their margins before bidding on a lot. A margin matrix takes into account the landed cost of goods—including purchase price, inbound freight, duties and any refurbishment—versus the expected resale price. Build your own spreadsheet to model different scenarios and set a floor for your minimum profit. Don’t forget to include overhead like warehouse labour or platform fees so your “deal” doesn’t become a dud.
Always inspect manifests and photos carefully. Damaged packaging, short expiry dates on consumables and restricted brands can wipe out an otherwise attractive purchase. Brands often limit where their products can be resold, so check their authorised channels before listing. If you’re buying salvage merchandise, be sure you can remove defective units or repackage to meet marketplace standards.
Where you source inventory can be as important as what you buy. Proven channels include:
Once you’ve dialled in your sourcing strategy, consider stepping up your order sizes. Bulk purchasing unlocks economies of scale and lowers your per‑unit cost. Analyses of bulk buying benefits explain that larger orders allow businesses to negotiate better pricing with suppliers, lower shipping costs and maintain more stable supply chains, translating to significant cost savings, improved profitability and a competitive advantage for retailers. When you combine bigger buys with a disciplined margin matrix, the result is a healthier bottom line.
With these tools in hand, you’ll be able to spot high‑margin deals, avoid costly mistakes and build a sustainable wholesale business.
