You can save a lot of money by purchasing from a wholesaler. This is one way in which bulk purchases save money. One DVD player costs you $100; but, if you were to purchase one hundred at once, the cost per unit would drop to roughly $50. The common belief is that to save money on bulk purchases, one must travel abroad. This is the most widespread false belief. In all likelihood, your home state is teeming with factories and distributors of manufactured goods. Almost always, it's not worth your time to shop internationally. You could have shipped a big container from China to the United States for what you spend transporting only liquidation pallets ( the containers you can fit 2 cars into). The customs inspection process can add additional months to the delivery timeline. Doing business on a global scale is a surefire way to lose several thousand dollars.

Shipping costs for something as relatively tiny as a pallet of Sony DVD players across the ocean are astronomical. This has already been taken care of for you by the makers and manufacturer wholesale dealers. Thousands of enormous containers are being shipped to the producers' wholesale distributors alongside your pathetically small pallet.

What if you get scammed? When shopping in China, you're not subject to the same regulations as you would be in the United States. They might take your cash but never deliver the promised merchandise.

To give you some context, a buddy of mine has been doing business with a Chinese firm for the past two years. Every time he placed an order, they fulfilled it in full. Despite the higher shipping costs, he was still making $20.00 or more on each unit he sold by sourcing it from abroad. He beamed with satisfaction as he detailed his rising bank balance to me. In that time frame of two years, he made two major purchases: a new car and a new home. Don't put all your eggs in one basket, I kept telling him. He ignored the problem and carried on as normal. He placed an order for a large quantity of PlayStation 2s ( I think he ordered about 172 of them). Two months later, he still hasn't received his order. After two years of regular phone contact with the company, he contacted and wanted to speak with the manager. The game was played with him.

He called them daily for six months, trying to negotiate a settlement. They never agreed to anything and always claimed that once they sent anything, it was out of their hands. He suffered a devastating financial loss that nearly forced him out of business. For two years, he worked closely with a major Chinese firm. No one could have predicted this. Ultimately, you will lose money if you shop overseas. In the long run, the savings won't amount to much. I'm not implying that all Chinese businesses are dishonest. What I'm trying to express is that there is no way to stop them. You're just a little business owner in the United States. They give zero damn about you.

The need for extra space to store big purchases is another drawback. You'll need some space to keep your freshly purchased pallet of DVD players. How about a storage facility or a driveway you're not using? Permits for preventing fires or storing big quantities of items may be required.

What happens if you sell 75 out of 100 DVD players and your rivals decide to lower their pricing to compete? Either you don't sell them at all, or you sell them at a loss. Money could be lost.

The bright side is that you showed impressive planning skills by purchasing everything in pallet quantities. You have a good idea of what will sell like hotcakes. A large purchase of PlayStation 3s or Xbox 360s is guaranteed to turn a profit. Investing in large volumes will quickly multiply your profits. Investing in substantial quantities of a product at once can pay off handsomely. If you have a large enough space to keep something. If that's the case, you might benefit from drop shipping. Success hinges on being aware of current trends. Finding out what people are buying at the moment is crucial. The identical products may not sell as well tomorrow.