Wholesale Business is one of the most profitable business option in India. Wholesalers purchase products from manufacturers at a lower rate and sell it to distributors and retailers at a higher price. They keep a higher profit margin and make a lot of money. Due to the higher volume and fat profit margin, most of the people consider wholesale business.
It is a good idea to start a wholesale business. However, before starting a wholesale business you need to consider several important aspects. Given below is a comprehensive list of points you should consider before starting a wholesale business.
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Points to consider while starting wholesale business In India
Product
The first thing to decide before starting a business is – what to sell? There are multiple products available in the market. Some of them are basic product and some of them are premium. You should select a product based on usability, supply-demand and profit margin. It is a good idea to deal with monopoly products.
Market Size
You should also look at the market size of the product. Carry out market research. Get in touch with retailers and customers to know the price of product and market size. Knowing the market size is very important while doing research.
Profit Margin
Profit margin is the next important point to consider before starting any business. The profit margin of the wholesale business product should be reasonable or high. You will get an idea about the profit margin from the manufacturer or distributor.
Inventory Management
A major challenge that comes in order to start a wholesale business is logistic arrangement storage and inventory management. You should consider a good inventory management IT system expenses while making a business plan.
10 Best wholesale business in India
#1 Textile Business
Textile product business is first in the list of wholesale businesses. It is lucrative business segment. There are wide range of products under this segment such as thread, fabric yarns, home furnishing, readymade garments, footwear, accessories etc. You require specific knowledge of the textile industry before starting the textile business.
#2 Wholesale Food Business
A food business is next in the list of wholesale business. A food wholesaler sells food products to distributors and retailers. Popular products for the wholesale food business are bakery items, dairy products, jam, jelly, pickle, snakes, beverages etc.
#3 Office Products
Office Products and stationery items can fetch a very good profit margin. You have to find out clients and distributors that purchase office products in bulk. You can produce and sell customized office products or standard items such as papers, diary, clips, files, notebook, staplers, pen, pencil etc.
#4 Building Construction
Real estate and building construction is an evergreen business option. The demand for building construction items is growing. If you have experience in construction-related activities you can start a business of building material such as brick, stone, steel, concrete etc.
#5 Agriculture Products
India is an agricultural business economy. Thus starting an agriculture product business is very good business option. If you have knowledge of agriculture you can start this business. There are multiple agriculture products under this business such as seed, organic food, fertilizer, machinery etc.
#6 Chemical Business
India is one of the largest chemical producers all over. There are various sectors in the chemical industry such as agriculture chemical, industrial chemical, biochemical, colors, dyes etc. You need to select a product that suits you. You need to have prior experience before starting a chemical business.
#7 Healthcare and Beauty Products
Health care and beauty products cater to a wide range of products such as personal care products, drugs, medicine, surgical instruments, cosmetic items, health care items etc. It is promising business with lot of opportunities. You can take the distributorship of famous brands and start this business.
#8 Manufacturing Machinery
Manufacturing machinery is required for starting almost every big business. Thus starting manufacturing machinery business make sense. It is a capital intensive business. Some of the famous industry where machinery are required are food processing plant, chemical processing, welding works, leather work etc.
#9 Plastic Products
Items made up of plastic are famous all over. Plastic products which are used as household items are plastic bucket, plastic tiffin, bottles, water jug, flasks, lunch box, chairs etc. If you have experience in dealing with plastic products you can start plastic product business.
#10 Automobile Products
A usage of cars and bike are growing. Every vehicle requires maintenance and repairs over the period of time. This gives birth to the business of automobile products. It is an evergreen business with good profit margin. You can sell auto accessories and part in bulk and earn lot of profit.
Final Thoughts
It is a very good idea to start your own wholesale business. However, you need to invest a lot of money and time in order to get success in the wholesale business.
If you have already got success in wholesale business or if you have any other business in your mind please feel free to share it in the comment section given below.
