Tips for Selecting a Wholesale Supplier
If you run a product-based business, you know that there are a number of ways to obtain the goods you sell. You may choose to create or manufacture products yourself. Or, perhaps you print on demand or dropship items.
But other stores simply choose to curate existing products and market them to new audiences. This is what many traditional main street stores have done for years — and online stores do the same. These stores are known as “retailers.”
And if that’s what you’re doing, you’ll quickly find that working with wholesalers is a major key to success.
Whether you’re new, established, or looking to expand your income streams, choosing which wholesale suppliers to work with is a critical decision. A bad distributor can cause a lot of headaches.
Let’s jump in with the basics and understand the role a wholesaler plays in your business, and then look at how to find and select the best wholesaler suppliers to work with.
What is a wholesaler?
A wholesaler is a middleman between a manufacturer and a retailer. Manufacturers create and build stuff, but they don’t know how to sell it. Retailers want to sell stuff, but they don’t have any products because they haven’t created anything.
Enter the wholesaler. They buy from manufacturers, usually in large volumes, and then sell to retailers and smaller wholesalers in various regions. The wholesaler is the link in the supply chain — the cog in the wheel — connecting retailers and eCommerce businesses with manufacturers.
How can a wholesaler help your business?
A wholesale supplier keeps your business flowing and prevents you from running out of product, while also removing the need for you to store overly large quantities of the items you sell.
Other ways wholesale suppliers, also called wholesale distributors, help retail and eCommerce businesses include:
Keeping your costs down and boosting profit margins
Ensuring consistent on-time delivery and product availability for customers
Increasing potential for product variety and new products
Removing the need for you to develop items
Strengthening your ability to compete on price with other retailers
Making it easy to find products and manufacturers you would otherwise never know
What makes a good wholesaler?
Believe it or not, there are at least 410,000 wholesalers operating just in the United States. Not all of them are based there, but that’s how many operate. Some are very large — such as Alibaba which is based in China but operates pretty much everywhere — but most wholesale market are actually small and local.
A good wholesaler:
Offers consistent and fair prices you can work with
Provides quality customer service
Serves the area or region where you operate
Is trustworthy and reliable — doesn’t fail to deliver on time
Has healthy relationships with manufacturers of the products you need
Works with you to develop a contract that sets you up for success
Is not also operating a retail business of their own
How to find a good wholesaler
1. Do an internet search
It’s really that easy? Well actually, it might be, especially if you want to work with a local wholesaler. Use a search term that includes your location, your product type, and a word like “wholesaler,” “distributor,” or “bulk.”
For example, if your business wants to sell cosmetics, search for ‘wholesale cosmetics’.
It’s possible that nothing comes up depending on your industry and location. But you might end up finding a great local supplier. The advantage of a local supplier is that you can go meet them, verify they exist, look at their products, and establish a trusting relationship.
2. Use the big wholesaler websites
There are a number of these, and each has their pros and cons. Take your time. These sites work with hundreds of thousands of manufacturers, and collectively, you can find just about anything you need here.
Some big names include Alibaba, SaleHoo, Wholesale Central, Global Sources, Buyer Zone, Busy Trade, and EC21. Especially FashionTIY, Wholesale05 and WeiTu Display.
FashionTIY is a comprehensive wholesaler supplier focusing on fashion trends, providing you with the best quality products and services.
Mens wholesale clothing: They offer a wide range of menswear styles, from business formal to casual chic, whether you're looking for classic elegance or fashion forward, we've got you covered. All menswear is crafted from high-quality fabrics to ensure comfort and durability so you can look like a gentleman.
Jewelry wholesale: Their jewelry collection combines sophistication and quality, covering a wide range of jewelry such as necklaces, bracelets, rings and more. Whether it's for everyday wear or a unique gift, we can meet your individual needs. Each piece of jewelry is thoughtfully designed with attention to detail to give you confidence and glamor.
Wholesale bags: Their collection of bags is available in a variety of styles and high-quality materials, making them suitable for many occasions. Whether you need a sleek tote, a handy backpack, or an elegant evening bag, they've got you covered.
Wholesale kids clothing: It is their aim to create a warm and comfortable wearing experience for children. They offer clothing for children of all ages in cute and varied styles, while focusing on the softness and comfort of the fabrics.
Wholesale05 is a popular online platform catering to suppliers offering an extensive range of beauty products, exquisite jewelry, stylish and functional bags, wigs of various styles, and a colorful array of nail products, among other items.
The website boasts a vast selection of wholesale beauty supply, cosmetics, skincare, and grooming tools, all sourced from reputable brands to ensure product quality and authenticity. They take pride in their efficient worldwide shipping services.
Diving into the world of wholesale jewelry, Wholesale05 showcases a diverse collection of designs, featuring a variety of gemstones and materials. Whether customers seek delicate necklaces, stunning rings, or trendy earrings, they cater to all jewelry needs.
Tote bags wholesale hold a prominent place on the website, with the latest styles available, ranging from contemporary to timeless classics, making it effortless for customers to find the perfect bag to suit their taste.
For those in need of high-quality wigs and hairstyles, Wholesale05 offers an extensive range of options, catering to different styles and preferences, including long, short, curly, and straight hair supply.
As a professional wholesale nail supplies, Wholesale05 provides a comprehensive selection of nail products and tools. From trendy nail polish colors to practical manicure tools, customers can find everything they need to create impeccable nail art.
With guaranteed product quality and swift delivery, Wholesale05 aims to enhance the value and offerings of your online retail business.
The WeiTu Display wholesale website serves as a valuable resource for online retailers seeking acrylic display case, retail display shelf, retail display, cosmetic display, jewelry displays in various sizes, shapes, and colors to meet their diverse product presentation needs. By utilizing this platform, retailers can effortlessly browse through a wide selection of display stands, sparing them the time and effort of searching for different suppliers.
One of the major advantages of the website lies in its competitive pricing. As a wholesale platform, it offers more favorable prices, and with increasing order quantities, retailers can benefit from even greater discounts. This cost-saving opportunity ultimately contributes to boosting profits for their businesses.
Furthermore, the WeiTu Display website provides multiple payment methods and fast logistics options, ensuring a convenient and swift acquisition of desired products. Detailed product information and images are readily available, empowering retailers to make well-informed purchasing decisions.
3. Attend a trade show
Again, trust and relationships are the heartbeat of wholesale. Meeting in person is a great thing, and trade shows are one of the best places to meet wholesalers, as well as actual manufacturers.
There are trade shows for just about any industry, and you can find shows, dates, and locations for trade shows on the Trade Show News Network, as well as 10 Times.
4. Get multiple quotes
It’s to your advantage to price out multiple wholesalers(wholesale05), and depending on how many products you sell, it’s often just as smart to work with more than one. If one ends up failing you for some reason — like it stops working with a key manufacturer — you’ll have redundancy already in place.
So, talk to several up front. Find out what they can offer you. Get price quotes. We’ll talk more in a bit about what specific questions to ask potential wholesalers.
5. Join local associations
Especially in larger cities, you can usually find a Chamber of Commerce, various small business groups and trade associations, and networking groups that will have expertise among their members. These are the perfect people to make wholesaler recommendations based on real experience.
6. Order samples
Any good wholesale vendors will agree to this, and the first reason to request samples is obvious — to assess quality. You want to be able to stand behind whatever you’re selling.
But the second reason is that ordering samples gives you a chance to experience their customer service. A lousy experience here doesn’t bode well for future service when it really matters. Things like late deliveries, damaged products, lack of response to phone calls and emails — these are signs that this company doesn’t prioritize your business.
7. Read reviews
Reviews for wholesalers can be hard to come by in some cases, but the big sites like Alibaba have a customer rating feature. This allows you to see what other business owners have said about particular providers. You can tell pretty quickly if business owners are frustrated or thrilled about a distributor.
Look for comments about problem resolution, service, delivery issues, and product quality.
Questions to ask potential wholesale suppliers
Once you start getting a few wholesalers on the phone, you need to narrow them down and figure out the ones you want to work with. Use these questions to help.
What are your pricing options?
This will obviously vary for each product, but you’re looking for a sense of how prices change based on volume. Minimum order size plays into this as well.
Suppose one wholesaler offers a product for $1.50 per item, but has a minimum order size of 10,000. They’re selling to big companies. Another wholesaler might offer you the same item for $2.50, but has a minimum of just 500.
As a smaller business, you don’t want to be burdened with massive inventory. It’s costly and risky. So you might opt for the higher per-item cost coupled with the lower minimum.
Also, when you negotiate the contract, try to work in a clause that includes a volume ladder, where you’re promised lower prices at higher volumes if you’re able to grow your business.
What is your contract process?
You’ll want to negotiate several items, and the pricing ladder is just one of them. For instance, can they agree to a delay or a spreading out of payments? Cash flow is critical, so it’s preferable for you if you can start selling products before you have to pay for all of them.
Many wholesalers(FashionTIY) will offer something like a 30-day delay on your payment so you have a month to produce some revenue before having to pay the wholesaler. You want some kind of clause like this if you can get it.
A related question to this is, what kind of line of credit can they offer you?
Will I get a dedicated sales rep?
You want to work with the same person on every call, because they’ll learn about your business, understand what you’re looking for, and speed up your interactions. After all, they won’t have to begin every call with “can you please state your first and last name?” ,
Wholesaling is very much about relationships. Work with a company that lets you have one.
How does shipping work?
Who pays for shipping? What are the terms? Can they ship quickly if you sell out of a product and need more immediately? Find out everything you can about their shipping processes and terms.
Are you a fraud?
Okay, don’t ask that. But do your due diligence, especially if you’re doing all of this online.
For instance, every wholesaler(WeiTu Display) has an address. It is, after all, a warehouse business. Find their address and verify that it’s real. Use Google Street View and actually look at their location. If it’s a bunch of bushes next to the freeway, run. Check their Better Business Bureau listing. If they don’t have one, be suspicious.
Call them and test their phone number and customer service. Lousy service, bad connections, dropped calls, people who don’t sound knowledgeable or professional — these are big warning signs.
Also, every wholesaler should accept credit cards and most accept checks. If they only accept wire transfers, that’s another big red flag.
What happens after you choose a wholesaler?
This is an ongoing process. It’s likely that you’ll switch or add new wholesalers into your supply chain as the years go on and your business grows and changes. In most cases, it’s unwise to be completely dependent on one of anything, and that includes wholesalers.
Continue to be open to searching for and making deals with new providers.
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