How To Start A Wholesale Business In India?

. 6 min read
How To Start A Wholesale Business In India?

Table of Contents:

1. How To Start A Wholesale Business?

2. Wholesale Distributor Business Ideas

3. How To Become A Wholesaler In India?

4. Wholesale Business Without Investment Ideas

5. Wholesale Business Without Investment Plan

6. Best Wholesale Business Ideas

7. Things to Note Before- How To Start A Wholesale Business?

1. How To Start A Wholesale Business?

A wholesale business refers to an individual or an organisation that purchases goods from manufacturers and thereafter distributes them to retailers. A wholesale distributor business thus acts as an intermediary between manufacturers and retailers. A wholesale business is considered to be a profitable one due to the variety of business ideas in the country. The following are the notable attributes of a wholesale business:

  • Wholesalers buy products at a considerably low price from manufacturers.
  • They are also known for bulk buying from manufacturers.
  • The business cycle between the manufacturer and a wholesaler may differ based on the type and nature of the business.

2. Wholesale Distributor Business Ideas

There are several ideas to start a wholesale distributor business. Some of the more popular distributor business ideas are:

  • Beauty products
  • Electrical appliances
  • Utensils
  • Agribusiness products
  • Home utility products
  • Organic food business
  • Food packaging products
  • FMCG products

3. How To Become A Wholesaler In India?

In order to start a wholesale distribution business in India, there are certain steps one should bear in mind. Due to a large number of manufacturing units in the country that are manufacturing various products like chemicals, pharmaceuticals, textiles and FMCG products, there is no dearth of opportunities for wholesale units. It is a business that ensures profitability and credibility to its front runners. There are certain steps to start a wholesale distributor business:

  • Selection of products: Selecting the product to be sold is the foremost task of a distributor. One should try choosing a product which is in high demand in the particular area. Detailed and extensive market research can be carried out to ascertain the popularity and profitability of the products.
  • Setting up the warehouse: Setting up the warehouse wherein the wholesale products are kept is the next step in establishing a distributor business system.
  • Establishing and maintaining good contact with suppliers: It is necessary to finalise the suppliers of the products that one has chosen to distribute. It is also essential to reach out to old and trusted dealers in one’s area who have the required panache and experience in the trade.
  • Expanding the network: Establishing new contacts, dealers and suppliers is also pertinent to the distribution process. If there is a substantial number of known contacts with dealers, the wholesaler will definitely fetch good margins in the long run.
  • Devising a credit policy: Setting up a credit policy will give better results in the long run. There would be many dealers who might face financial challenges in purchasing the products at that particular time. Therefore, it is advisable to maintain a credit policy for your wholesale distribution business.
  • Preparing license documents: In order to run a distributor business, it is important to apply for a distributorship license. It is also essential to register your company and obtain legal permission to start the distributorship business.
  • Supervising the business: After successfully setting up the wholesale business, it is important for the owners to monitor the business transactions constantly. It is also good to build a personal rapport with dealers and other agencies that would be supplying the products for sale.

4. Wholesale Business Without Investment Ideas

There are many small business ideas that can be implemented without much hassle and a low sum of capital. Some small business ideas are:

  • Home decor items: Handmade artefacts and gift articles are a popular small business that can be started with little investment.
  • Handmade candles and incense sticks: Selling handmade candlesticks and incense sticks is also a good way to earn revenue, and it also promotes local labourers.
  • Ice cream cones: The business of ice cream is also a profitable option because people love these desserts.
  • Paper bags: A paper bag is a good substitute for plastic bags. It also is an eco-friendly product. The production and sale of paper bags is a good small business idea.
  • Homemade pickles/chutneys: Homemade pickles and chutneys are also a flourishing small-scale business idea with low investment.

These small business ideas can easily get distributors and can be successful wholesale businesses in the long run.

5. Wholesale Business Without Investment Plan

It is important for wholesale business owners to devise a distribution business plan and stick to it. It will ensure the profitability and long-term stability of the business. Some points to note in this context:

  • The foremost step in conceptualising a distributor plan is to define the mission and vision statement of the distribution business.
  • Pose questions like what is the purpose and goal of the business is pertinent.
  • The owner must have clarity about the values and ideas to be followed to ensure the company’s growth and profitability.
  • Set up a structure and smooth flow for the business.
  • Seek profit margins at every stage.
  • Ensure hiring of trusted employees in the business.
  • Ensure the short-term and long-term goals of the business are met.
  • Devise an apt business strategy for the smooth functioning of the venture.
  • Also, focus on correct and suitable marketing strategies.
  • Know the competitors.
  • Seek reviews or honest feedback from the owners

6. Best Wholesale Business Ideas

A wholesale distribution business is considered to be a profitable business. Some of the common business ideas to set up a wholesale business are:

  1. Textile Industry: A textile business is considered the most traditional and profitable business in the Indian context. India is a hub of numerous textile manufacturing units spanning across states. The textile business is very large, and it has various segments like yarns, fabrics, readymade apparel and home decor. The textile industry is a sector in which one can get distributorship easily.
  2. Agricultural Products: It is a known fact that India is predominantly dependent on its agricultural produce that contributes a substantial percentage of the country’s GDP. Therefore, a wholesale business consisting of agricultural products will always be profitable. Products like agro-based chemicals, fertilisers, agricultural equipment and irrigation pipes can be considered for a profitable wholesale business.
  3. Processed Food Category: Processed foods and snack items can also be considered for a wholesale business. In India, the food industry is large and seamless. Therefore, the sale of snacks and edible items is always a profitable business.
  4. Stationery Business: The sale of stationery products like pens, paper and other accessories can also be started as a prospective wholesale business. Stationery products will always get distributorship due to the surge in offices and educational institutes that require large amounts of stationery.
Wholesale Business Without Investment

7. Things to Note Before- How To Start A Wholesale Business?

A wholesale distribution business is a profitable business with functions like sales, operations and logistics for arranging the transportation of products from one place to another. The wholesaler’s tasks include taking large-scale orders, processing the received orders and establishing cordial relations with existing customers. There is an array of distributorship opportunities in this field. This is a long-term, profitable business that ensures stability and a considerable amount of profitability too.

However, there are a number of risks involved in this business too. Sometimes, due to natural calamities and other events, wholesalers can face immense risks in their business.  Sometimes, owners can also face high operating costs, which can result in losses for the company.

 We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
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Also Read:

8 Business Tips for Wholesale Business Owners

Retail and Wholesale Industry Overview

Top 20 Wholesale Markets in India [Start Exploring Now]

Digitalisation in the Wholesale Industry

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FAQs

Q. What are some of the profitable wholesale business domains?

Ans. A wholesale business is always considered profitable due to the variety of product opportunities that can be turned into a wholesale business. Textiles, beauty products and food products are some of the domains that guarantee profitability in this business type.

Q. Is there a large amount of money involved in starting a wholesale business?

Ans. Not necessarily. Starting a wholesale business would require some amount of money. But the investment would not be a burden as long as the business operates to generate significant profits.

Q. Does the government provide some funds to start a wholesale business?

Ans. Yes, there are certain plans and schemes initiated by the Government of India which help small business owners start a wholesale business.