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As a reseller, the wholesale supplier you choose to work with can either make or break your business. As your primary source of inventory, you need a supplier that’s not only trustworthy but also reliable. You also need one with high-quality, affordable prices that you can market to your customers and turn a profit.
However, finding a reliable wholesale supplier for resellers can be quite challenging, especially if you’re new to the business.
Read on to learn everything about wholesale suppliers, from what they are, why they’re so important, and how to find a reliable partner.
What Is a Wholesaler?
A wholesaler is a vendor that deals solely in bulk products. Rather than marketing directly to consumers in a B2C (Business to Consumer) model, wholesalers deal directly with businesses that wish to sell products directly to consumers, meaning they operate in a B2B (Business to Business) model.
Essentially, wholesalers act as middlemen in the supply chain by bridging the gap between manufacturers and resellers. They buy goods in bulk directly from the manufacturer and sell them to resellers at lower prices. Resellers then repackage the wholesale products to sell them at a profit.
This business model was practiced even in the past when people started exchanging goods. When money was introduced, it made wholesaling even easier. Currently, wholesalers have become an important part of every economy. Without them, manufacturers would have to market and deliver their goods directly to consumers, creating many problems.
What Are the Benefits of Working With a Wholesale Supplier?
As a reseller, working with a reliable wholesaler has many benefits, including the following:
Streamlined Business Model
Running a successful resale business is all about sourcing the right products at affordable prices. Manufacturers typically sell their products in bulk quantities that a regular resale business may not be able to purchase or store.
Wholesalers eliminate this problem from your business model by allowing you to purchase product quantities that you can actually handle. They also eliminate the need for finding a manufacturer willing to work with a small retail business.
This enables you to create a more favorable business model that allows you to purchase all the inventory you need without stretching your budget or storage space.
Huge Discounts
One of the greatest benefits of using a wholesaler for reselling is the huge discounts you stand to gain. Many resellers make the mistake of buying single products at high prices, making it hard to turn a profit.
Working with a wholesaler, on the other hand, gives you the benefit of negotiating for a bigger discount. Typically, the more items you buy, the higher the discount you’ll get.
A Steady Supply of Inventory
Wholesalers typically deal with domain-specialty products. This means that they always have a steady supply of whatever you need. Getting a steady supply of inventory at constant prices means you can perform better sales forecasting and upscale whenever you need to. It also gives you more convenience compared to resellers who buy individual pieces of inventory.
How to find a Reliable Wholesale Supplier
There are lots of wholesale suppliers in the market. But you need to put in some effort to find one that’s good enough for your business. Here are some tips that you can use to find a reliable wholesale supplier:
Expand Your Search
When looking for a wholesaler to work with, don’t limit your search to local wholesalers. While you might save money in transportation costs by working with local suppliers, it might also mean that you’re not getting the best deals.
To land the best wholesaler, you should look online for suppliers in your niche business. You should also visit their website and initiate direct communication with them to understand what they’re offering.
Examine Similar Products
Many resellers put the information of their suppliers on their product labels. So, if you’re dealing with specific products, you should consider checking the supplier details of similar businesses. If a business is offering high-quality products at affordable prices, it means that their supplier is giving them a huge discount that helps them stay competitive. This method simplifies your supplier discovery process, allowing you to focus on other important areas of business.
Network
If you’ve been in business for some time, the chances are that you’ve met other business owners in your industry. You should use these connections to get recommendations for reputable wholesalers. You can also attend and participate in trade shows and engage with manufacturers, wholesalers, and other resellers in your industry.
These events offer an excellent opportunity to gain industry insights, construct relationships, and establish contacts with potential partners.
Ask the Manufactures
While this might sound far-fetched, directly reaching out to manufacturers could offer valuable insights into some of the best wholesalers in your industry. Manufacturers may be willing to connect you to a reputable wholesaler directly or offer a list of wholesalers operating within the industry.
Ask Questions
Once you’ve narrowed down a list of potential partners, contact them directly. You should also ensure you have the necessary business licenses and tax documents on hand, as some wholesalers may decline your orders or even refuse to engage with you without the necessary documentation.
When you do get their attention, here are a few questions to ask:
- What are their minimum order quantities?
- What’s the cost per unit?
- What’s their return policy?
- What is the lead time? This is especially relevant to drop-shippers, as they need to know the lead time to manage customer expectations.
Find the Best Wholesaler
Wholesalers are an important part of the resell industry. You simply can’t do without them. They make it easy to procure inventory and eliminate some of the problems associated with buying inventory directly from manufacturers. For your business to succeed, you should find a reliable partner that will offer you competitive prices, considerable order quantities, and timely order fulfillment. So don’t settle until you find the perfect partner.
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This content is brought to you by Susan Melony.
This post was originally published on here
