It is undeniable that wholesale shoes is a lucrative business to get into in online selling. Although you may notice that the online market is already flooded with wholesale shoes, there are still ways to get your products noticed and make it big in this industry. If you will be targeting the mass market, then you must give them compelling reasons to buy your products. To sell wholesale shoes that is cheap and yet has a good quality and style will be your most important selling points in your business. Nowadays, with the economy in recession, consumers look for great bargains in wholesale shoes so you must be able to find the cheapest sources of wholesale shoes in order to draw customers to your business.
To understand the different levels of the supply chain in the distribution of wholesale shoes will help you see why similar products may be priced differently. You will find that some wholesale shoes are priced so cheaply and yet others may be too expensive for one to even profit from selling these.
The supply chain actually starts with the manufacturer who makes or produces the shoes that are passed down the supply chain. The longer the supply chain the pricier the shoes become because there will be more entities involved in the chain who will extract profits from the items as they pass down the chain.
The manufacturers have designated distributors so the former can concentrate their efforts in production. The job of the distributors is to deal with the wholesalers. By the time the products reach the level of the wholesalers, the cost of the shoes is somewhat higher than what it was at the distributor level, however this is understandable because passing the products from one hand to another has its inherent costs. From the wholesalers, the products are turned over to middle men down to the retailers and finally to the end user or consumer. By this illustration, a retailer who is looking for cheap wholesale shoes must find his way to the distributor level and bypass the middle men in order to slash down the cost of the wholesale shoes.
Actually, there are distributors and manufacturers who have set-up subsidiary companies who deal directly with retailers. In this manner the retailers are able to purchase items at wholesale prices and this prevents middle men from coming into the picture. The prices of the wholesale shoes would depend on the volume that the retailer would be purchasing. Even if the retailer is dealing directly with the manufacturer, the principle of economies of scale still applies thus the higher the volume of wholesale shoes the retailer decides to buy the cheaper the cost would be.