How to Find a Wholesale Supplier: A Guide for Sourcing Your Stocks
How do I find wholesale suppliers?” Most business owners ask themselves this question when starting out in the e-commerce sector.
To become an Amazon seller, you must understand that your inventory is the lifeblood of your business. You can’t profit without having products in stock, so you must ensure you have enough to keep your company running.
Of course, manufacturing your own merchandise may not always be possible. This is where wholesale suppliers can help.
In this guide, we’ll explain the qualities of a good wholesale supplier and help you select the right one for your e-commerce business.
To become an Amazon seller, you must understand that your inventory is the lifeblood of your business. You can’t profit without having products in stock, so you must ensure you have enough to keep your company running.
Of course, manufacturing your own merchandise may not always be possible. This is where wholesale suppliers can help.
In this guide, we’ll explain the qualities of a good wholesale supplier and help you select the right one for your e-commerce business.
What Is a Wholesale Supplier?
Before finding a partner who can fill your inventory, you must first understand what counts as a wholesale supplier. Also referred to as a wholesaler, this type of supplier is a company that acts as an intermediary between manufacturers and retailers.
Wholesalers have licenses to buy products in bulk at a discounted price and offer them to entrepreneurs for a minimal markup. Generally, they don’t sell directly to the end customers.
Tapping a wholesale supplier can provide plenty of advantages for your business. It can give you the flexibility to diversify your products without needing to handle product development or go through the grueling process of acquiring raw materials.
Wholesalers have licenses to buy products in bulk at a discounted price and offer them to entrepreneurs for a minimal markup. Generally, they don’t sell directly to the end customers.
Tapping a wholesale supplier can provide plenty of advantages for your business. It can give you the flexibility to diversify your products without needing to handle product development or go through the grueling process of acquiring raw materials.
How to Find a Wholesale Supplier
Finding wholesale suppliers can be tricky, especially if you’re new to the e-commerce industry. This section covers three essential steps to make your selection process easier.
1. Start with what you need.
Before you can even consider factors like price, quality, and reputation, you must first know what you need to find the best wholesale supplier.
Start with product ideas: What do you want to sell? Do you want to niche down or carry a wide range of products in your Amazon store?
If you have no clue, you can get inspiration from the product catalogs of various wholesalers to know what’s currently on the market. You can also explore best sellers on Amazon to get an idea of what is popular.
If you already have an Amazon seller account, you can also use the Product Opportunity Explorer to pinpoint trending categories and products on the e-commerce platform.
Note that some products may need approval before you can sell them on Amazon. You can utilize the Compliance Reference portal in Seller Central to know what steps you need to take to complete this.
Once you’ve decided on specific items to sell, the next thing you must consider is the quantity.
With wholesale, your profit comes from buying in bulk for a discount. However, you must ensure that you only end up with items that you can actually sell to avoid tying up your business capital.
That said, you need to determine the minimum order quantity required by wholesalers for the product you choose and find the perfect balance that will allow you to get the best price without sacrificing business flexibility.
Still testing the waters? Requesting samples is a good way to assess whether a product will be profitable for you.
Start with product ideas: What do you want to sell? Do you want to niche down or carry a wide range of products in your Amazon store?
If you have no clue, you can get inspiration from the product catalogs of various wholesalers to know what’s currently on the market. You can also explore best sellers on Amazon to get an idea of what is popular.
If you already have an Amazon seller account, you can also use the Product Opportunity Explorer to pinpoint trending categories and products on the e-commerce platform.
Note that some products may need approval before you can sell them on Amazon. You can utilize the Compliance Reference portal in Seller Central to know what steps you need to take to complete this.
Once you’ve decided on specific items to sell, the next thing you must consider is the quantity.
With wholesale, your profit comes from buying in bulk for a discount. However, you must ensure that you only end up with items that you can actually sell to avoid tying up your business capital.
That said, you need to determine the minimum order quantity required by wholesalers for the product you choose and find the perfect balance that will allow you to get the best price without sacrificing business flexibility.
Still testing the waters? Requesting samples is a good way to assess whether a product will be profitable for you.
2. Find candidates.
The internet has made it so easy to connect with people across the globe. That means you’re no longer limited to wholesalers within your area. All you need is Google (or any of your preferred search engines) to start browsing through several potential wholesale partners locally and internationally.
Create a list of candidates and visit their websites to find any mention of wholesale or B2B (business-to-business). Contact those that do and tell them about your search for a wholesale supplier.
Other methods of finding suppliers include attending trade shows, joining professional networks (like LinkedIn), and asking for referrals.
Create a list of candidates and visit their websites to find any mention of wholesale or B2B (business-to-business). Contact those that do and tell them about your search for a wholesale supplier.
Other methods of finding suppliers include attending trade shows, joining professional networks (like LinkedIn), and asking for referrals.
3. Filter and validate.
Now that you have a list, it’s time to filter and validate the candidates to narrow it down. Below are the three most important factors you should consider:
Product Quality
When researching potential wholesalers, the first thing you need to check is the products they offer. Beware of low-quality and knock-off merchandise, as it can hurt your business in more ways than one. Perform market research first to avoid purchasing these unsellable items.
Price and Cost
When it comes to wholesale, everything is negotiable. If you can get 10 percent off an item’s price, you’re most likely with a good supplier.
Of course, you still need to account for other factors that affect the total cost before shelling out any money, including:
● Cost per unit
● Minimum order quantities (MOQs)
● Shipping, delivery, or handling costs
● Other expenses like membership fees
Usually, the higher the quantity of the order, the bigger the discount. However, you must avoid overspending on a single item, especially if your goal is to diversify your offerings.
Of course, you still need to account for other factors that affect the total cost before shelling out any money, including:
● Cost per unit
● Minimum order quantities (MOQs)
● Shipping, delivery, or handling costs
● Other expenses like membership fees
Usually, the higher the quantity of the order, the bigger the discount. However, you must avoid overspending on a single item, especially if your goal is to diversify your offerings.
Reputation and Credentials
Customer service is as crucial in B2B relationships as it is in B2C (business-to-consumer).
Look for companies that have a good reputation with their clients. They should also have policies to ensure transactions go smoothly and handle possible issues like failed deliveries, returns, etc.
As with buying retail, you must read reviews and ask about the wholesale supplier first. If there are complaints, especially about poor customer service or product quality, it’s best to take your search elsewhere.
Remember: All products you sell on Amazon must be authentic and good quality. This isn’t limited to those registered for Amazon Fulfillment either.
Look for companies that have a good reputation with their clients. They should also have policies to ensure transactions go smoothly and handle possible issues like failed deliveries, returns, etc.
As with buying retail, you must read reviews and ask about the wholesale supplier first. If there are complaints, especially about poor customer service or product quality, it’s best to take your search elsewhere.
Remember: All products you sell on Amazon must be authentic and good quality. This isn’t limited to those registered for Amazon Fulfillment either.
Bonus: More Questions to Ask a Potential Supplier
One of the best ways to filter and validate potential wholesalers is to contact them directly. When you do, here are some more important questions you should ask:
● What is your return policy?
Sometimes, problems may arise that require you to return your order to the supplier. Ask who will cover the cost of the return shipping and how the wholesaler candidates intend to handle such issues when they arise.
● What is the lead time for stock arrival?
To grow your e-commerce business, you need to maintain a healthy inventory. You can’t do that if the arrival of your products is delayed. By knowing the lead time, you can effectively manage customer expectations, reducing the risk of disappointment and dissatisfaction with your store.
● What is your return policy?
Sometimes, problems may arise that require you to return your order to the supplier. Ask who will cover the cost of the return shipping and how the wholesaler candidates intend to handle such issues when they arise.
● What is the lead time for stock arrival?
To grow your e-commerce business, you need to maintain a healthy inventory. You can’t do that if the arrival of your products is delayed. By knowing the lead time, you can effectively manage customer expectations, reducing the risk of disappointment and dissatisfaction with your store.
Streamline Your Supply
Finding a wholesale supplier is a game-changer for your e-commerce business. The right partner can keep your store well-stocked, your customers happy, and your profits flowing.
Take the time to define your needs, do your homework, and vet your suppliers thoroughly. All this will pay off through a streamlined, efficient supply chain that supports your business growth.
If you need assistance, Amazon Seller Support is always here to help.
Take the time to define your needs, do your homework, and vet your suppliers thoroughly. All this will pay off through a streamlined, efficient supply chain that supports your business growth.
If you need assistance, Amazon Seller Support is always here to help.
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