In the Philippines, consumers love to buy in small quantities. When they go to cheap places like Divisoria, however, they will only get the most affordable price if they buy in bulk. It’s a sales strategy that works only for those who are willing to stash such large quantities of products, those who have extra money, and those who plan to sell the products in smaller quantities. Buy-and-sell business owners purchase products in bulk and then repackage them and sell them in smaller batches. They earn a good profit from doing this.
Consumers know that they can buy things cheaper in bulk but who needs five gallons of vegetable oil in one go? So, what they do is buy from the market a repacked bottle of vegetable oil in one-liter quantity. Isn’t that more practical and economical? After all, where should you store five gallons of vegetable oil in your house? Not everyone in the Philippines has a large pantry. Most make do with a small cabinet to store bottled and canned goods.
The best part about buying and selling in the country is you don’t need a college degree. Anyone can buy and sell products as long as they know where to buy the items cheaply. They also have to understand if there is a market for these products. A buy-and-sell business can start for as little as P10,000 or sometimes, even less.
Growing a Buy-and-sell Business
But do you know that your buy-and-sell business is not limited to the Philippines? You can ship these internationally, too. Since there are many overseas Filipino workers (OFWs) in Hong Kong, they usually buy products that Filipinos miss having a taste of. They sell these products to the Filipino community there.
It can be anything from a local maker of cuticle remover to shrimp paste to a favorite brand of soy sauce. Not to mention, everyone knows Filipinos love their local seasonings. You can receive their payment via remittance as it is easy to send money from Hong Kong to the Philippines.
This will grow your business in an instant. Expanding your market internationally will lead to more sales. More sales mean more profit and revenues. While it is a lot of work to ship products legally to other countries and territories like Hong Kong, this is a great way to expand the scope of your market.
Adding More Products
Choose the products you are going to sell carefully. Some products sell very well. Kids’ clothes, for example, have a huge market, as well as loungewear for women and linens for the home. But when you choose the products, make sure you have a budget for them in case they have to stay in the stock room for a long time. You should also look into expanding your product range. Don’t stick with whatever you have in the inventory right now.
Remember that you are buying and selling items that others could sell, too. You are not the exclusive manufacturer of such items. This means that the competition is tougher. You may want to make your business a one-stop shop for all the possible products your target market wants to buy. They shouldn’t feel the need to switch to another online store because everything they want is available in your store.
Build a Brand
When you are merely reselling items, it’s easy not to want to build your brand anymore. After all, you don’t make these items. If you notice in the Philippines, most of the sellers you see on e-commerce platforms are resellers. What separates the successful ones from the ones that last only for a month or two is their branding. Successful resellers make an effort to build their brands. Whether it is focused on children’s lifestyle or home products, the important thing is for the market to understand what they can find when they visit your store.
A good brand attracts consumers. So, build on your brand to make you irreplaceable in their eyes. Branding—regardless of what form of business you are in—will bring you to success. One of the best ways to build your brand is to identify what your market demands and to have the answer for them.
A buy-and-sell business is a great entrepreneurial idea for Filipinos who don’t have the big financial capacity to start a business. It fits the current business style of e-commerce, too, right now. As more and more consumers turn to online stores even for their most basic needs, it becomes tantamount for entrepreneurs to find a way to meet these needs.