There are a number of business models for physical commerce and e-commerce, one of which is buying in bulk for resale.
Buying wholesale is not something you can improvise, and we’re going to look at the advantages and disadvantages of this method of supply, as well as techniques for finding reliable wholesalers.
Buying wholesale: Advantages
Buying in bulk offers many advantages, from lower prices to control over inventory and logistics.
1- Reduced rates
Buying wholesale means buying large volumes, and inevitably, prices are not the same as if you were buying retail.
Buying in bulk therefore represents an economy of scale, since the unit price is lower.
Example If you buy retail, i.e. one piece at a time for jeans at €30, 200 pieces will cost €6,000.
If you buy in bulk, your wholesaler is bound to quote you a price. Let’s assume €5,000 for 200 pieces, which would mean a unit price of €25.
You save €5 for each piece.
By buying at wholesale rates, i.e. at reduced prices, you not only save money on the purchase, but also make more margin on the sale.
2- Controlling inventory and logistics
With wholesale buying, you’ll need to stock a large quantity of products, and you’ll have a lot of items to sell.
This means you’ll have to make fewer purchases.
If you buy in small quantities, you’ll have to make frequent purchases, but with bulk buying, you reduce your frequency of purchases.
So, logistically, you’ll have fewer worries.
You’re also in control of your inventory, since you’ve purchased it yourself and know the quantity of your products – those purchased and those sold.
Based on your sales, too, you can forecast the quantity of your next purchases.
3- Product customization
Buying in bulk gives you control over your product inventory.
You can visualize products before shipping them to customers.
As a result, you can also personalize the packaging and ensure the quality of each product or any defects. 
The disadvantages of buying in bulk for resale
Bulk buying doesn’t only have advantages, and depending on the merchant’s organizational capacity, disadvantages can arise.
1- Storage space
A large storage area is often needed to store the large quantity of products.
Depending on the nature of your products, this can take up a lot of space.
So you need a place to store, and that comes at a cost.
If you have to rent a warehouse, it could be expensive.
You need to take this into account when calculating your costs. 
2- Transportation costs
You also need to take into account the cost of finding a carrier and transporting the goods.
If you’re sourcing from a faraway country like China, the transport stage can be lengthy.
If you’re buying from abroad, there are also customs fees to consider. 
How can I find reliable wholesalers?
Buying from a wholesaler and reselling means first paying a lot of money and then earning some.
To minimize your risk, here’s how to find reliable wholesalers.
1- Research
To begin with, you should know that few wholesalers are easy to find on the Internet.
Although it’s possible, you’re likely to come across several scams before you find your ideal wholesaler.
2- Directories
Consult the Yellow Pages, where you can find wholesalers by filtering according to criteria such as region.
Kompass is another reliable site where you can find wholesalers.
3- The meeting
To determine whether a wholesaler is reliable or not, you need to ask the wholesaler’s customers, if you have the opportunity to get to know them.
You can also contact the wholesaler directly and ask questions that will help you judge his reliability.
If the wholesaler is in your area, or if you can travel, do so.
You’ll be able to see for yourself the quality of the products and the way the wholesaler operates. 
4- Price comparison
If the references you’re looking for are available from several wholesalers, make a comparison to get the best price from the most reliable wholesaler.
5- Ordering samples
Finally, to judge the quality of products when you can’t be there, place an initial order.
However, as this is a wholesaler, you will be obliged to commit to a minimum purchase quantity.
To overcome this, persuade the wholesaler to send you a sample only.
To conclude on buying in bulk for resale
Bulk buying is not a technique to use when starting up an e-commerce business.
But once your online store is generating a lot of sales, it’s a business model worth considering.
Carefully study the various advantages and disadvantages specific to your business and get started!
Once you’ve found a reliable wholesaler, you’ll be able to enjoy the benefits of bulk buying.
For more specific needs, don’t hesitate to contact me.
As an expert in Prestashop site development and modules since 2008, I’d be delighted to help you.
