Types of wholesalers There are 7 types of wholesalers;
Merchant Wholesalers – These wholesale suppliers own and produce a product or service and resell their products to resellers, retailers, distributors and other wholesalers. If you can buy the products you require direct from the supplier you will usually be able to obtain the best prices and profit margins.
General Wholesalers – Wholesalers that fall into this category will usually buy large quantities of products from one or more suppliers and will be intending to add value to them by reselling in smaller quantities to distributors, retailers and resellers. This type of wholesale supplier will often have multiple suppliers adding diversity to their product range and choice for their customers. This type of wholesaler may resell products from a number of different industries and in several different categories.
Speciality Wholesalers – This type of wholesaler will resell products in a specific industry or product category, but may have products from multiple suppliers. Because specialty wholesalers specialize in a specific industry or product type they tend to have good product knowledge and good pricing.
Specific Product Wholesalers – These are wholesalers who only supply 1 type of product for example footwear or computers. They may supply several brands but only within one product category. Manufacturers often use this type of wholesaler to distribute one or more of their products.
Discount Wholesalers – This type of wholesaler will supply significantly discounted stock. Generally the stock is discounted because the products are discontinued lines, returned goods or refurbished goods.
Drop Ship Wholesalers – This type of wholesaler will complete the sale of a product but will have it dispatched from their supplier directly to their customer without actually handling the goods.
On-line Wholesaler – Wholesalers who sell their products on-line offer discounted prices as they can reduce their overheads such as rent and rates of physical premises. This type of wholesaler is therefore able to add a lower percentage to their purchase price and still make margin.
Find wholesale Suppliers
To find wholesale suppliers quickly and easily follow these tips;
Know which product(s) you’re looking for – Before you begin trying to find a wholesaler it’s advisable to know the types of products they wish to sell to their customers. This doesn’t necessarily need to be the exact make and model; just the product type is a good start. If you’re planning expand your product range or start a business and need inspiration try browsing merchants on www.the-reseller-network.com as a starting point.
Order volumes & budget – Understanding the quantities you require or your budget available will make finding the best wholesale supplier for your business much easier. It’s actually one of the first questions a wholesale supplier will ask you and will ultimately determine whether they will supply your business and at what price.
Understand the supply chain – Finding a wholesaler is much easier if you understand where exactly you fit between the manufacturer and consumer. If you are not familiar with the supply chain and various types of wholesale suppliers you may wish to read our “Types of Suppliers” article at http://www.the-reseller-network.com/content/69/types-of-suppliers/. Consider where your desired product is manufactured; if abroad consider the cost of importing compared to the cost of sourcing from a distributor in your country. The easiest way to find out is to find and contact some manufacturers, distributors and wholesalers. This can be done quickly and easily by browsing and contacting Merchants on The Reseller Network or alternatively you can you use search engines or directories although this may take more time and effort.
Contact & negotiate with wholesale suppliers – Once you have identified your product, understand its distribution channel, know your order volumes or budget, found a wholesale supplier or 2 that supply what you’re looking for it’s time to make contact and negotiate terms and pricing. The nearer to the source of the supply chain i.e. the manufacturer you can purchase from the better the price you’ll get, although this may require larger minimum order values. Unit cost, delivery time scales, quality control, returns policies and guarantees will be important points when negotiating with wholesaler suppliers. Finding and contacting wholesale suppliers on www.the-reseller-network.com is the quickest and easiest way to make direct contact with the relevant person, particularly when dealing with bigger brands. You could also use search engines or business directories to find wholesale suppliers, however that will require you ringing around or email which may take longer.
Can’t find the right wholesale supplier? – We recommend you contact all available wholesale suppliers, sometimes finding the right product or the right price can just time but it is generally worth the effort. If after speaking to the wholesalers you still can’t find the right wholesaler to supply your business, contact The Reseller Network and ask us to help, it’s free! If we think it’s possible to find what you’re looking for we’ll help you! If we feel your requirements are unrealistic we may offer some alternative solutions to help you achieve your goal and make some money.
Additional resources to find wholesale suppliers – Business networks such as LinkedIn can help resellers to find wholesale or suppliers for products in various industries and categories. Join groups and forums relative to your industry can be useful however you receive bad advice under best intentions or be approached by spammers or scammers, which is worth bearing in mind. Trade publications are also worth a read if possible and exhibitions can also be attended to find a wholesaler supplying products in your country or area if the time and travel expense is affordable and justifiable.
What makes a good wholesaler?
There are many considerations that determine what makes a good wholesaler for your business;
A good wholesaler should meet your requirements in terms of price and product quality.
A good wholesaler should be able to supply the volume of goods required to meet your demand and in a reliable and timely fashion.
Good wholesalers who provide good service will normally have a good reputation within their industry.
The terms and conditions, credit facilities (if applicable) and location are key factors when determining what makes a good wholesaler.
When importing products from a wholesaler outside your country, ensure they can provide the necessary regulation information for the products you wish to resell.
It is always advisable to research, review and contact the wholesaler to ensure that they can supply the right products for your business.
Most good wholesalers will say they supply to the trade only, so ensure they can supply excluding certain taxes that are added to consumer purchases. Local taxes will not be included if the wholesaler is delivering to a reseller outside their countries jurisdiction. Import taxes will be applied by the receiving authority of the reseller. If taxes like VAT are included then the supplier is not a good wholesaler but rather a discounted reseller.
Whilst the cheapest price is always appealing it does not necessarily make a good wholesaler. The cheapest price is worthless if the goods are not fit for purpose or the supplier can not maintain a steady supply to meet your demand.
Ultimately a good wholesaler is determined by a combination of all these factors which may vary in priority depending on your specific requirements.
In order to find a good wholesaler use reputable resources like The Reseller Network where who provide reliable information from validated companies reducing your risk of being conned by an fraudulent trader.