How To Start A Profitable Wholesale Business In Ghana
How To Start A Profitable Wholesale Business In Ghana
Whether you’re currently a white-collar professional, a manager worried about being downsized or bored with your current job, an aspiring entrepreneur, and are looking to start a wholesale business in Ghana, then this post is right for you.
Starting a wholesale business in Ghana is a good option if you don’t want to deal with any retail customers.
In this post, we provide you with all your ideas that will help you launch a profitable wholesale business model in Ghana from scratch.
What Is A Wholesale Business?
To better understand how to start a wholesale business in Ghana, let us know the wholesale meaning in general. The term wholesale can be grouped into two reasonable criteria.
👉 First Model: A business may buy goods or products in large quantities directly from manufacturers, put them in a warehouse, and resell them.
👉 Second Model: We can also define wholesale as a business that may produce or manufacture their products to sell directly to retailers, who in return sell these products to their customers.
Types Of Wholesale Business In Ghana
Wholesale businesses can be grouped into three distinct categories. And these are:
🎁 Merchant Wholesalers
Merchant wholesalers are individuals or businesses that do most of the distribution themselves. They have direct contacts with suppliers where they buy products in large quantities for a discounted prices.
They import these products, store the inventory themselves, set their prices according to the market demand, and sell them directly to retailers. We can take Jumia Ghana, Franko Trading Enterprise, Kab-Fam Ghana Limited, and Freddies Corner as an example.
😎 Agents, Brokers, And Commission Merchants
This group of retailers serves as a middle person between the suppliers or manufacturers and the retailers.
It is like affiliate marketing, where you get paid based on the lead your referral makes on the vendor’s sales page.
Their role is to connect retailers to manufacturers or suppliers, and they will be paid a percentage based on the sales generated.
Manufacturers are the suppliers who provide products to wholesalers. Yet, they can still be wholesalers if they realize their goods are becoming hot cake in the market. Most manufacturers have a sales team that sells products directly to customers online.
Who Is A Wholesaler?
A wholesaler is a middleman distributor that is responsible for distributing goods or products from manufacturers to retailers.
So, this is how the wholesale business works: the wholesaler buys products or goods in large quantities that attract discounts and lower prices.
Wholesalers allow the retailers to take advantage of a lowers price of products rather than buying single items that will cost a lot.
Importance Of Starting A Wholesale Business
Is it good to start a wholesale business in Ghana? If only you have the capital, then starting a wholesale business is the right way to go. Below are some of the reasons you should start a wholesale business in Ghana.
✔ It Helps You To Save Money
Starting a wholesale business in Ghana is one of the profitable ways to make money.
When buying products in bulk as a wholesaler, you save money through discounts that wholesale get with large orders. And this means you can get products for a low price and sell them for more.
✔ Trust and Following
Starting a wholesale business in Ghana where people come to your online store or mortar and bricks store gives you exposure to the market.
Your customer service, knowledge in researching good products and selling them helps you become more expert in this field, and people will begin to trust you.
When Jumia Ghana started in May 2014, people were not seen buying from them as we see today. But now, Jumia remains the number 1 online retailer so far in Ghana.
Therefore starting a wholesale business in Ghana will also let you gain more trust and following also.
How To Start A Wholesale Business In Ghana
Before you become successful in the wholesale business in Ghana, you need to understand the market. Below are some of the things you need to know before you enter the wholesale business industry in Ghana.
👉 Understand The Market Of Your Wholesale Business
Market research is vital when starting a new business entity. You will need to do proper research to find out the right customers or consumers for your products.
Without proper market research, your business will be like wrinkling in the dark. Doing this research will help you find dealers, retailers, brick and mortar retailers, online retailers, and other customers who will get the products from you.
Again, you have to do a competition analysis to gather all the information of products selling best for your market competitors. This will help you step into the marketplace with your chest up.
👉 Check The Location Of Your Warehouse
Deciding where to locate your warehouse is also very important at this stage. Location plays a vital role in attracting prospects and also retaining the best employees for your business.
Our problem has always been the scarcity of space and expensive land, especially in the city of Accra. With that, I have seen most businesses have their office and warehouse in separate locations.
👉 Get To Know Your Suppliers
Suppliers play an essential role in the wholesale business model. Starting a wholesale business in Ghana, you may work with one wholesale distributor or many.
But how to choose the right supplier can be a headache. There are more criteria to look up when choosing a wholesale distributor. The supplier has to be trustworthy, reliable, and easy to work with.
👉 Set Up A Website For Your Business
Finally, to start a profitable wholesale business in Ghana, you need to set up a website. Having a website for your business has so many advantages.
More customers can contact you on your website without you chasing after them. And since the online retailing business is increasing rapidly, it will also help you attract new customers willing to buy goods online.
Creating a website has become so easy nowadays. Thanks to WordPress and big-commerce or woo-commerce, you can create a professional e-Commerce site for your business in no time.
However, suppose you don’t know how to create it yourself. In that case, my friend Danny can assist you in creating a professional website for your wholesale business at a very affordable price. Contact him using this number: 0595350354
Now that you know how the wholesale business works find out the most profitable wholesale business trending this year to help you leverage the marketplace.