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February 15, 2024

10 Tips for Choosing the Right Wholesale Supplier


What does wholesale refer to?
 When we talk about business there are some terms that we hear often. Among these terms heard one is “Wholesale”. But do we actually know what wholesale really means? Wholesale is the practice of buying bulk amounts of the same quantity at a lower price and selling them to customers at a relatively higher price. This higher or increased price is referred to as retail price. The art of wholesale is selling items in bulk at a time due to which it may seem that a small business that has just started would not be able to buy anything but we’re here to tell you that even small businesses can buy from wholesale. 

Types of Wholesalers:
To get a better idea of how to start buying wholesale products for your small business it is important to first understand the types of wholesalers and which one would you choose for your business.

Manufacturers:
Ever wondered who created the products you today use with such ease? Well, it's none other than the manufacturer who assembles and designs products. A cycle is followed; once the manufacturer has completed making the product he sends it to the wholesaler. However, it is possible to contact the manufacturer directly too for some niche products a business owner would like to purchase. 

Exclusive vendors:
Exclusive vendors or exclusive distributors refer to distributors who have permission from the manufacturer to pass around their products. To understand this more clearly consider an example of a smart device manufacturer company like Apple. After the phones are designed in California stocks are sent to these retailers. 

 Distributors in a certain area or wholesalers:
Wholesalers lie under the category of exclusive distributors. They get stocks of a product from exclusive vendors or manufacturers for further distribution typically within a city on a smaller scale as compared to exclusive distributors. 

Factors to look for when selecting a wholesaler:
You should check the market before selecting a wholesaler. The following are the factors that should be considered for a suitable wholesaler for your small business.

  1. Head over to your nearest Trade show:
    The best way to initiate networking or meet the desired wholesaler for your business is to attend trade shows. You'll be able to locate everything you need in one location because they are designed with retailers in mind. This way you’d not only be able to meet potential wholesalers and have a one-on-one conversation with them but additionally would be able to advertise your business and how it is different from others. Apart from this, having a one-on-one conversation with the wholesaler may help
    you in negotiating the price. 

  2. Skimming for valuable information:
    Unable to make it to the trade show? Well, we’ve got you covered. In order to get more clients, wholesalers may place advertisements in the magazines. Make a habit of skimming through the industry magazines. This way you can get information about different wholesalers. Additionally, you can also read reviews about them online. In case you find too many negative reviews it's a sign for you to avoid that wholesaler. 

  3. Charges:
    Check the prices the wholesaler offers you at a number of places. Bargain and ask for discounts on what the wholesaler is willing to offer. What we would personally recommend is to buy bulks of stock at a single time as this would give you a great price. However, if you’ve just started your business and it is still growing this may be a little hard. In this case, it is best for you to maintain a long-term relationship with the wholesaler as it will benefit you in the long run. It doesn’t matter if you are paying more to the wholesaler and earning less profit you may be able to make a deal as your business grows. 

  4. Whereabouts:
    Try to find a wholesaler who is located nearby since this could be very beneficial for you. The wholesaler may be able to reduce the shipping charges for you and additionally, it would require less time for you to receive your products without much hassle. 

  5. Stability:
    When you choose small wholesalers that offer reduced prices over large wholesalers you’re putting your business at risk. This is because there’s a possibility that your wholesaler may run out of stocks at any time putting your business at risk as you would have deliveries scheduled. Make sure you choose a stable wholesaler.

  6. Customer Support: 
    Make sure that the wholesaler you’re working with is easy to get a hold of and does not complicate any process. Delay in delivery of the stock or miscommunication would lead to a negative impact on customers in your online or in-store business. One best ways to find them would be to connect to manufacturers directly in order to purchase stock. They may be directly willing to sell their products, this would be a win-win situation as it would eliminate the additional charges that a wholesaler would demand for. In case, the manufacturer refuses to do so, ask them about the exclusive distributors or wholesalers to whom their product goes to.
     
  7. Locality:
    Make use of the internet and search for wholesalers or distributors near your area. You can additionally modify your search by adding the products you’re interested in buying. This would aid in better and more refined search results.
     
  8. Connections:
    Contact with other business owners. If they’re not your competitors they might be willing to help you. 

  9. Check Product Offerings:
    It should come without stating, but make sure you look over each wholesale supplier's product choices before choosing one. It's wise to confirm if they carry the item you want to purchase. However, long-term planning is also necessary, particularly if you intend to expand in the future. Do they carry goods that you intend to sell in the future? In five years, will this still be a mutually beneficial relationship?