How to Procure Merchandise at a Low Cost for Maximum Profit

How to Procure Merchandise at a Low Cost for Maximum Profit

12 min read

Every successful business owner knows that the secret to strong profit margins lies in one fundamental principle: buy low, sell high. But how exactly do you secure high-quality products at prices that leave room for substantial profit? The answer lies in mastering the art of cost-effective procurement.

Smart procurement isn鈥檛 just about finding the cheapest 蝉耻辫辫濒颈别谤蝉鈥攊迟鈥檚 about building relationships, understanding market dynamics, and making strategic decisions that benefit your business long-term.

Let鈥檚 explore the proven methods for finding and purchasing products from primary sources that you can sell to retailers or directly to consumers.

Understanding Wholesale Product Sourcing

Wholesale product sourcing is the process of purchasing goods directly from manufacturers, distributors, or authorized suppliers at significantly reduced prices.

When you buy products from primary sources, you鈥檙e cutting out middlemen and accessing the same inventory that major retailers use to stock their shelves.

The key difference between wholesale and retail purchasing lies in volume and pricing structure.

Retail customers buy individual items at marked-up prices, while wholesale buyers purchase in bulk at substantially lower per-unit costs. This price 诲颈蹿蹿别谤别苍肠别鈥攐蹿迟别苍 50% to 70% below 谤别迟补颈濒鈥攃谤别补迟别蝉 the profit margin that makes reselling viable.

However, wholesale sourcing involves more than just buying in large quantities.

Successful product sourcing requires research, relationship building, and strategic planning. You need to identify reliable suppliers, understand market demand, and negotiate favorable terms that support your business goals.

Why does this matter for your business? When you master wholesale procurement, you gain several competitive advantages:

Higher profit margins on every sale
Greater pricing flexibility to attract customers
Access to exclusive products not available through retail channels
Scalability to grow your inventory as demand increases.

How to Procure Merchandise at a Low Cost

Finding the right suppliers is crucial for cost-effective procurement. Let鈥檚 examine the most effective methods for locating wholesale items to resell.

Online Wholesale Marketplaces

This option is particularly advantageous for business owners wondering how to buy wholesale.

Digital platforms have transformed the way wholesale products are purchased, offering a host of benefits through online marketplaces:

Vast product selection across all categories
Easy price comparison between suppliers
Built-in communication tools and payment protection
Access to supplier ratings and reviews.

Alibaba remains the largest global marketplace, connecting businesses with manufacturers primarily in Asia. The platform offers millions of products across every category imaginable, often at extremely competitive prices.

Alibaba features hundreds of reliable suppliers

DHgate and Global Sources provide similar services with different specializations. DHgate focuses on smaller order quantities, making it ideal for testing new products. Global Sources emphasizes verified suppliers and quality assurance.

For domestic sourcing, Faire and Wholesale Central connect you with suppliers across the United States. These platforms often offer faster shipping times and easier communication due to shared time zones and language.

To simplify product imports, look for online wholesale marketplaces that integrate with your ecommerce store.

For example, if you鈥檙e using 51视频 by Lightspeed for your online store, you can easily to your 51视频 store and sell them as your own.

51视频 also integrates with Wholesale2B, a platform that connects you with suppliers and manages order fulfillment on your behalf.

Trade Shows and Expos

Industry trade shows remain one of the most effective ways to discover wholesale items for resale. These events bring together manufacturers, distributors, and retailers under one roof, creating opportunities for face-to-face relationship building.

The benefits of trade show sourcing include:

Direct communication with decision-makers
Opportunity to inspect product quality firsthand
Exclusive show discounts and promotional pricing
Networking opportunities with other business owners.

Major trade shows like the Consumer Electronics Show (CES), MAGIC Marketplace for fashion, or the National Hardware Show for home improvement products showcase the latest trends and innovations.

Regional trade shows often focus on specific product categories or geographic areas.

Directly from Manufacturers

Establishing direct relationships with manufacturers represents the ultimate goal for many businesses seeking to buy products from primary sources and sell to retailers or consumers. This approach eliminates distributor markups and provides the lowest possible wholesale prices.

Finding manufacturers requires more effort than using marketplaces, but the payoff can be substantial. Start by researching companies that produce products in your target categories. Many manufacturers have separate wholesale divisions specifically designed to work with resellers.

Communication and negotiation with manufacturers typically involve longer lead times and higher minimum orders, but the cost savings can justify these requirements. Manufacturers also offer greater customization options and exclusive distribution agreements.

Discover more about connecting with manufacturers in this article:

Liquidators and Closeout Suppliers

This is another viable choice for business owners wondering where to buy things in bulk to resell.

Liquidation companies purchase excess inventory, returned merchandise, and closeout products from major retailers and manufacturers. This inventory is then sold at deeply discounted prices to businesses looking for wholesale items to resell.

The advantages of liquidation sourcing include:

Extremely low prices, often 10-20% of retail value
Access to name-brand merchandise
Opportunity to purchase mixed lots for variety
Quick inventory turnover for fast-moving businesses.

However, liquidation sourcing also presents challenges such as variable product conditions, limited ability to inspect merchandise before purchase, and unpredictable inventory availability.

Companies like B-Stock, Direct Liquidation, and 888 Lots specialize in different types of liquidated merchandise. Some focus on customer returns, while others handle overstock situations or seasonal closeouts.

Now that you know how to procure merchandise at a low cost, you can choose the option that best suits your business needs and proceed. And if you鈥檙e looking for product ideas, check out this curated list of wholesale items to resell:

Factors to Consider for Product Sourcing

Successful product sourcing requires careful evaluation of multiple factors beyond just price. Here are the critical elements to consider when deciding where to buy things in bulk to resell.

Quality vs. Cost

The cheapest option isn鈥檛 always the most profitable. Product quality directly impacts customer satisfaction, return rates, and your business reputation.

Low-quality products may cost less upfront but can result in higher customer service expenses and damaged brand credibility.

Establish quality standards before you begin sourcing. Request samples from potential suppliers and test products thoroughly. Consider factors like materials, construction, packaging, and consistency across units.

Calculate the total cost of ownership, including potential returns, warranty claims, and reputation damage. Sometimes, paying slightly more for better quality results in higher overall profitability.

Minimum Order Quantities (MOQs)

Wondering how to procure merchandise at a low cost? Purchasing in bulk is often the key to unlocking those discounted prices.

Most wholesale suppliers require minimum order quantities (MOQs) to qualify for wholesale pricing. Depending on the product and supplier, MOQs can range from a few dozen units to several thousand.

Evaluate your cash flow and storage capacity before committing to large minimum orders. Starting with smaller quantities may cost more per unit, but it reduces risk while you test market demand.

Negotiate MOQs when possible, especially after establishing a relationship with suppliers. Many vendors will lower minimums for repeat customers or businesses demonstrating growth potential.

Shipping and Logistics

When researching how to procure merchandise at a low cost, business owners sometimes forget to account for shipping costs.

Shipping costs can significantly impact your total procurement expenses, especially for heavy or bulky items. International shipping often involves additional fees like customs duties, import taxes, and handling charges.

Factor shipping time into your inventory planning. Domestic suppliers typically deliver within days or weeks, while international orders may take months to arrive.

Consider warehousing requirements for large wholesale purchases. Do you have adequate storage space, or will you need to rent warehouse facilities?

Payment Terms

Payment options vary significantly between suppliers. Some require full payment upfront, while others offer credit terms for established businesses. Understanding payment requirements helps with cash flow planning.

Net payment terms (like Net 30 or Net 60) allow you to pay for merchandise after receiving it, improving cash flow for growing businesses. However, these terms typically require credit applications and business references.

Payment security should always be a priority, especially when working with new suppliers. Use secure payment methods and verify supplier legitimacy before sending large payments.

Build Your Product Sourcing Strategy

Mastering how to procure merchandise at a low cost requires combining multiple sourcing methods, building strong supplier relationships, and continuously optimizing your approach.

The most successful business owners don鈥檛 rely on a single sourcing 肠丑补苍苍别濒鈥攖丑别测 diversify their supplier base to ensure consistent inventory availability and competitive pricing.

Start small and scale systematically. Test products and suppliers with smaller orders before making major commitments. Track your results carefully, measuring not just wholesale costs but total profitability, including shipping, storage, and selling expenses.

More Tools to Support Your Business

Selecting the right ecommerce platform is just as crucial as perfecting your product sourcing strategy. Luckily, platforms like 51视频 by Lightspeed make it easy to do both.

With 51视频, you can create an online store and integrate it with suppliers like Alibaba, Wholesale2B, and more. This allows you to import products directly into your store and start selling to your customers with ease.

Prefer to add products to your store on your own? No problem. 51视频鈥檚 robust product import tool makes it easy to upload thousands of products in just 尘颈苍耻迟别蝉鈥拢辞 advanced technical skills required.

51视频 equips you with all the tools you need to succeed in online sales. From building your website to integrating with marketplaces and social media platforms, 51视频 streamlines the process. It also offers powerful marketing tools and sales analytics to help you grow your business and make informed decisions.

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Business Finance

Jul 31, 2025

About the author

Anastasia Prokofieva is a content writer at 51视频. She writes about online marketing and promotion to make entrepreneurs鈥� daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.