Setting up a brand business is daunting enough. When you add sourcing wholesale products to the mix, it can be challenging to know if you’re doing the right things.
If you’re setting up your business and are ready to figure out product sourcing, you’ve come to the right place. This article outlines everything you need to do to source the best, most profitable wholesale products for your business.
Let’s get started.
How to Find Wholesale Suppliers?
Whether you want to purchase apparel or buy electronics in bulk to resell, the first step is finding a supplier. But to find the right supplier, you need to understand distribution channels first.
Distribution Channels
Distribution channels are used to distribute goods from manufacturers to consumers. It includes many facets, and two of them are wholesale suppliers and retailers/resellers.
However, not every industry’s distribution channel is this straightforward. And you may need to research the available channels in your niche so you can find suppliers for your inventory.
Where to Find Wholesale Suppliers?
Online Resources
A simple Google search will tell you a lot about the industry you’re operating in. Simply search for wholesale suppliers in your industry. If you want to broaden or narrow down your search, try adding keywords to specify:
● Location
● Niche
● Product name
● Model number
● Brand
● And more.
B2B Marketplaces
B2B marketplaces are considered some of the best wholesale suppliers in any industry. These online platforms are easily accessible, and provide a great selection of products in various categories.
They source top-quality products from trusted brand sources that you can easily offload. And you certainly can’t ignore the low prices at which B2B marketplaces offer their products.
You’re also saved from the trouble of visiting physical marketplaces or trade shows in person.
Trade Publications
Most industries have a trade publication that lists all the latest updates about that field. They are great resources to get started with your list of reliable wholesalers.
Trade Shows
Trade shows are industry-specific exhibitions and another great place to look for suppliers. They can be local or international, depending on the industry and trade.
The best part of trade shows is meeting suppliers and other business owners in person and conversing with them directly. You can get all your doubts or queries about the trade and product sourcing out of the way all at once.
You can find trade show announcements via websites that list events by industry, business, country, state, city, or even region. You can even find events by name if you are familiar with them.
Here are some websites to check for upcoming trade shows in your industry:
● Events Eye Trade Show Directory
Networking
Business cooperatives or your local chamber of commerce is another resource you can take advantage of. These can provide you access to an extensive network of suppliers that offer local services. You can expect honest evaluations of their services.
If you are in a niche market, you can also network online by creating a LinkedIn profile and following leaders in your industry.
How to Choose the Right Wholesale Supplier?
These tips should help you narrow down your list of potential suppliers:
● Find out about the wholesaler’s experience working in the industry
● Check client reviews, track down references and referrals
● Calculate and compare the profits you stand to gain by working with different suppliers
● Learn all the charges they levy
● Understand their pricing strategy
● Ask about the ordering process and methods
● Confirm their delivery lead time
● Make sure the supplier understands the products they’re selling
● Read their contract, return policy, and other fine print
● Ask if contract terms are negotiable
● Look for wholesale suppliers with reliable customer service and support
When doing your due diligence, set your requirements straight and establish your non-negotiables. Do not hesitate to discuss and negotiate contract terms to get a profitable deal.
Be wary of suppliers that offer rock-bottom prices. Their products might not be of good quality, and their service might not be reliable, which will ultimately harm your business.
Ask for Samples
While not all wholesale suppliers will agree to this, you can request free samples before signing a contract. Free or paid samples are a good way to order a few units of a certain product and learn firsthand what it’s like to work with a wholesaler.
Try out samples from your shortlisted suppliers and select the ones that are the best match for your business.
Don’t be afraid to go back and forth before finalizing an agreement that meets your non-negotiable business needs.
What Do You Need to Do Before Buying Wholesale Products?
Form Your Company
Depending on how you want to pay taxes and run your business, you will have to choose a specific business structure for your company (sole proprietorship, partnership, LLC, corporation).
Get Your Business License
The US Small Business Administration’s online resources will help you determine what licenses your business will need in your state.
Get Your EIN and Tax ID
You can obtain your Employer Identification Number (EIN) and tax ID on the IRS website. An EIN is required for filing your business taxes, whereas a tax ID is mandatory if you’re selling products online and shipping them to different states.
Get a Wholesale License
A wholesale license is required to purchase wholesale goods, store them, and resell them. While not all states have this requirement, it helps to check and confirm. You can visit your state’s tax office or revenue website to be sure.
Get Your Resale License
With a reseller’s license, you can get tax exemptions on the purchase of goods for resale. If you don’t have tax obligations, you have more capital available for investing in improving your business operations.
To Sum It Up
How much profit you end up making in the retail/resale business is a direct result of your product sourcing efficiency. And one way to ensure a smooth process is to find the right suppliers to partner with.
We hope this guide will help you find the best suppliers in your niche. We wish you the best of luck!
