Minimum order requirements

[stupidbicyclist]

So I want to start my own small internet store. I emailed this company as to carrying their products, and I only want to carry some. Although in their dealer application it says there is a minimum orderof $2500. I obviously cannot afford this. What I'm wondering though is, I have seen stores that carry this product, and I know they have about $200 dollars worth of this companies product, not $2500, so I'm wondering if every company I try to get products from will have this large minimum order. I thought ordering the products would be the easiest part, haha. Let me know, thanks.

[YOUTHERE1.com]

No, not all companies require such a large minimum purchase.

You have to be aware of the agreement terms and what they entail. If you purchase $2,500 worth of products, where are you going to securely store them? How are you going to accommodate sales and ensure you get your money safely? How are you going to arrange efficient shipping to a customer clear across the country? How are you going to deal with returns? etc etc.

Some companies in fact will take care of all these aspects of the business for you - all you do is market their products, refer sales their way and cash your commission cheques. This type of system bodes well if you cannot afford a large start-up investment.

So you will need to decide which business route you want to take and be sure you do all your research upfront.

Good luck.

[Bytestopia]

Hi there,

check out this dropshipper who dropship electronics with no minimum orders and free entry fee.

www.mobilephones-wholesaler.com
www.cigarettes-wholesaler.com

[brian.mark]

Some of the manufacturers we deal with require $100,000 initial purchase, so $2500 didn't seem too bad to me.

What I've seen some smaller players do for those big initial buy-ins is either find someone else to handle part of it and split the product when it arrives, or find someone else that's set up and talk to them about buying at a discount from normal price. In many cases, you can buy at cost or very little over because there are rebates involved that can make them their margins (although that's pretty rare any more to find someone willing to do that.)

We have other local retailers call up asking if we want to split a buy-in on some brand we don't carry every now and then. It's not totally unheard of.

Brian.