Your shopping cart is empty!
Dealing with wholesale suppliers is not an easy job, especially for first-time buyers. Hence, it is ideal to understand the distribution channels in this industry to help you succeed in the business. Bear in mind that there are many ways that merchandise can be transferred from the manufacturer to the retailer. Not all wholesale suppliers serve a single market. Knowing the distribution channels and knowing where you are in the supply chain could help you find the right supplier for your retail store.
TYPES OF WHOLESALE SUPPLIERS
The first thing you need to do is to learn the different types of wholesale suppliers. Generally, there are five types of suppliers in the clearance wholesale industry: manufacturers, importers, distributors, peddlers, and auctioneers.
There are manufacturing companies that sell their merchandise at wholesale prices directly to retail businesses. More often than not, they sell products in bulk and the minimum order is very high. If you have a certain product that you want to sell, try asking a particular manufacturer if they can sell to you directly. If this is not the case, you can still ask for a list of distributors that they sell their products to. You can contact these distributors to purchase their products from.
Because of modern business technologies and globalization, importing merchandise has become very easy today as compared to the past. Individual retailers can buy from importers or purchase the products directly from foreign companies. But before you connect with this type of wholesale supplier, it is ideal to do your homework first. It is crucial to understand all the important aspects of shipping, product life cycle and expenses involved.
In general, distributors sell various items on wholesale. Take note that they also need to make profits, so the prices could be a bit higher as compared to the prices when are purchased directly from manufacturers. The order quantities that is required is often smaller as well. You can still buy in bulk but often not in the quantities required by bigger wholesalers. Some suppliers even allow orders without minimum quantities. Some also offer free shipping on orders over a specific amount.
There are online peddlers that are offering many product lines. Some are even selling truckloads of goods that were sold as clearance wholesale items. They procure their items from various sources and then sell them to the consumers. Before purchasing from this type of supplier, it is important to be sure that you are getting exactly what you are looking for and that what you are buying did not come from shady deals.
You can find numerous wholesale bargains on auction sites. All you need to do is to browse the wholesale pages and you can find a lot of merchandise on sale. However, this type of distribution channel takes time and there’s no guarantee that you will find the products that you want to offer in your store.
Aim to Deal with the Source
It is important to take note that every product line has its own distribution channel. You can bypass distributors if you have high volume orders or if you are in a smaller industry. In this case, you can buy directly from manufacturers. This is the reason why you can easily find a supplier once you already know the products that you are searching for. If you are a start-up, you may end up purchasing from smaller suppliers at higher prices. As you increase the volume of your orders, you can get lower prices or deal with a larger supplier.
Try to find the source of the merchandise. If you want to sell branded products, go directly to the manufacturer. There’s always the possibility that they will sell to you if you meet their requirements. Getting to the source or as close to the source as possible will give you the best prices. If the manufacturer cannot sell to you, they can at least give you a list of their reliable distributors.
Once you have the list of distributors, you can start looking for one that can supply you with the products that you need at affordable prices and convenient arrangements. Ask about minimum order requirements and their unit prices for wholesale orders. To get the best replies, it is always best to be honest about what you are searching for. Also keep your e-mails short and direct to the point.