Regional Wholesale Appeal
Regional wholesale markets provide easy access to merchandise. They are especially useful for new retailers. These wholesale markets sell a variety of products and provide retailers with a taste of future trends. The appeal of wholesale markets lies in the ability to see products first-hand.
Most permanent wholesale markets are in large retail centers such as Atlanta, Dallas, Los Angeles, and New York. The Los Angeles Market is located in the downtown fashion district. The entire Los Angeles fashion district is condensed into just a few blocks. AmericasMart in Atlanta, on the other hand, is one of the largest permanent wholesale markets. The market is a whopping seven million square feet. However, some wholesale trade shows travel to other large cities to attract new customers.
Buyers must submit proper retail verification. For example, the Dallas market requires buyers to submit a copy of a State Sales and Use Tax Permit with the appropriate SIC or NAICS codes. Buyers must also show a voided business check or a copy of the corporate credit card. An active copy of the deed or active lease is also required for traditional retailers. Many markets require an application fee for buyers.
Buyers’ business cards are not required, but are recommended. Business cards make it easy to establish relationships with suppliers and other retailers.
Disadvantages of Regional
The sheer number of people, shops, products, and vendors can be dizzying. Certain times of the year and shows can exacerbate shopping stress. Having a solid budget and shopping list can ease the shopping process.
For retailers whose stores are far from the markets, going to the market means leaving their stores behind. This can be a complication for small retailers. Traveling to a market could mean closing the store for a couple of days and losing valuable store traffic and business. The trip would also mean incurring travel expenses. Depending on the distance and accommodation, these travel expenses can be expensive.
When it comes to purchasing items, most sellers require a minimum order quantity for purchase. Some companies may also pass the shipping costs on to the buyer. Shipping is an important aspect to consider when deciding whether to purchase an item or not.
Before going to the market, buyers should conduct a thorough inventory inspection. Inspecting your inventory and analyzing your customer’s preferences will give retailers a better idea of what to buy from the market. If buyers know what they need to buy, they can focus on one area of the market that offers the products they need. Therefore, it is important that buyers are familiar with the market layout. Being laser focused, having a limited budget, and being familiar with the environment can make the market experience more productive.
For those who cannot attend regional wholesale markets, there are alternatives. Online marketplaces are a good alternative to regional markets. Some e-commerce applications function as a regional marketplace. They offer many of the same benefits of a regional market and offer a market experience without having to fight crowds and leave home.