This Post is part of the “FREE Wholesale Training Course”. You can view the entire course listing and introduction to the course here.
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Module 1: Wholesale Mindset
- Introduction to wholesale mindset
- Differences between sourcing methods
- Skill sets needed to succeed in wholesale sourcing
- Prepare your mind for thinking wholesale all the time
- Wholesale lingo and terminology
You can click on each of the links above to go directly to the area of the module the best interests you. That being said, lets get right into the content!
Want to skip reading the massive wall of text? After the entire course is released, I will make videos for each of the sections for easier consumption. Make sure you are on our mailing list to be notified when it’s released!
Skill Sets Needed To Succeed in Wholesale Sourcing
There are certain skill sets you need to have, or need to hire for in order to succeed in wholesale sourcing. After looking at the skill sets below, I would recommend testing yourself to see if you have the skill sets needed to succeed. If you don’t have them, it would be wise to work on improving those skills, or hiring someone that has the specific skills. Let’s get into it!
We can break down skills for sourcing wholesale product into two different sections: Research, and Relationships.
When doing wholesale, there is a LOT of research that needs to be done. This includes initial research to find wholesale leads, and researching which products to purchase once you have set up a relationship with a company. These are the key skills needed to be a good researcher:
- Independence – being able to work without close supervision, managing your own time and projects.
- Critical thinking – being able to evaluate your work and that of others, making judgments about the value of information and drawing conclusions from data.
- Problem solving – working without “a right answer” and devising strategies to work towards a solution.
- Initiative – having the confidence to make decisions and act on them
If you lack certain skill sets to be a good researcher, this is a very easy skill set to outsource to others. There are plenty of people in countries outside the United States that can do research for a very low cost. If you are unfamiliar with outsourcing, we will touch on it briefly in module 7.
The absolute key to building a solid foundation for your wholesale sourcing business is relationships. You’ll be talking to people on the phone and via email. You’ll be negotiating and talking about how you can solve problems. In reality, you are a sales person in this role. You are selling your company to the brand owner on why they should work with you. I like to call this role the “Account Manager”. Here are the key skills needed to be a good Account Manager:
- Communication / People Skills – being able to talk to other people, listening to their needs, and being able to speak clearly and confidently about your company and abilities. Negotiation skills would fall under this.
- Organizational Skills – you’ll be able to do things proactively, instead of re-actively.
- Relationship / Trust Building – truly caring for the success of the other person you are talking to, building a mutual trust between others
- Self Motivation – Ability to do what needs to be done, without influence from other people or situations.
- Passion – Ability to transfer your passion for your product / service to other people.
As a business owner, you likely already have a lot of passion for your “product / service”. In this example, the “product / service” you are providing is determined by the value propositions you give to brand owners, which is discussed further in module 3. If you are looking to hire someone for this position, you will likely want someone that is passionate about sales, or have done sales jobs in the past. Those will typically be the best people to present your company to others – if you aren’t doing it yourself. Just keep in mind that starting out, you likely will want to be this person.
Other Skills Needed
One thing you will need to get accustomed to is rejection / failure. When reaching out to potential companies to do business with, you will encounter failure. Some companies do not want any more Amazon sellers, or even online sellers for their product. That’s perfectly OK! Don’t take the rejection personally, just take the rejection to make your presentation better. Better yet, use that rejection to make your relationship with that person even stronger. If you continue the relationship even after they’ve rejected you – sometimes those end up being the best long term relationships. You never know when they may decide to change their stance. Or, they may refer you to someone they know that could use your services because you’ve kept that relationship alive.
You will also need to have delayed gratification. If you are used to doing retail or online arbitrage, a lot of times you get that instant gratification when you find a good deal. Same thing with private label – when you find that right keyword that has minimal competition and high volume – it’s an immediate high. With wholesale, you may talk to someone, and it may take months before you get the exact end result you are looking for. You may also talk to people with no intention of ever making a deal with them. This is all part of building out relationships and a network that can drive deals to you in the future.
Finally, you will need determination. There will be times where it will literally feel like you are dealing with Amazon Seller Support. Call company A, and they will say “oh, this is the wrong number, call John as this number.” You give John a call and they say “I don’t know why they gave you this number, call this guy..” Then, you call that number and get a voicemail. Two days later, you still haven’t received a call back. You get the drift. You will need determination to keep pushing through to make things happen.