Distribution Business advice needed!

[Pcook12]

Hi guys,

I have decided that I want to set up a distribution business. I have chosen Alibaba to be my main source of wholesalers due to the ease of use and i'm only a beginner.

My question is, where do I find people that need products? For example, how do I find someone that wants X amount of XXX item, is there a website that makes it easier? Or do I just have to contact loads of random stores?

Rather than buying a product then selling on ebay/amazon/website, I would like to deliver straight to retailers that are in need of the product.

Thanks!

[AndyMc]

Hi Pcook,

Seems like there are variables in your business plans you have not hammered out yet.
I think you need to determine what kind of product fits your business model the best. This requires research on the target market, then your supplier, then any issues you may have with logistics, what your budget is, do these products require inventory, etc.
Then you have to figure out how to market it. Each market has its own unique marketing niche.

Example. We sell Crystal Awards.
Before our company was even launched, we did tons of market research. Found out if this market was a viable one. Was it profitable.
We then did research to find the proper manufacture of the Crystal award. With the right partner in hand and the right target audience. We then proceeded to figure out how to market our awards to the clients, how to position our brand in the market, how to get the product from point A to our clients hand at the absolute cheapest cost without compromising quality. We then went the extra mile to build a better product. This was done by refining the materials, the logistics process and our many other internal issues. Till this day we are learning different ways to make our company and product better.
Hope this piece of info helps. Good Luck!

[Pcook12]

Hi,

I understand what you're saying and thank you for your input. However, i'm not specializing in one particular product. I would like to find a directory/website of people that require products, I can then go out and source these products for them at a wholesale price.

Just need to know where to find these people that require products!

Thanks

[arbsn]

Pcook,

What I think Andy meant was that you need to choose an industry.

For example: I have a friend who used to train salesmen to sell and install Solar Panels to retail customers for him. He would purchase Polycrystalline Solar Panels from overseas suppliers such as Alibaba's and push the panels through his sales staff. The business flared out because the government lowered rebates given to home owners for installing solar panels.

Moral of the story:

You can't just go on Alibaba, buy a bunch of crap, and attempt to dump it on a market. You won't find customers other than MAYBE the odd rack seller (dollar store). The price ain't right, the margins ain't right, and the business won't work.

You have to find a product that has a supply/demand niche where you can impact a market so that it is forced to buy from you.
Find out if people are selling what you want to sell in your market. If they aren't, find out where people are buying that product from in your market, if they are buying it from overseas, there is an opportunity to warehouse it locally and that may make you some money.

[college_entrepreneur]

As others have said, pick an industry. You need to find a niche and target that particular niche. Also, why would you limit yourself by not setting up a website, ebay, and amazon? Those can provide a good addition to help turn sales...