Wholesale
Nedina Gjorgjieva
Nedina GjorgjievaFeb 09, 2022
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12 minutes
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It’s no secret that wholesale is classified as one of store owners’ most preferred supplying methods among others, such as dropshipping. The reasons behind this preference are numerous, but we won’t go into detail since the sale numbers can speak for themselves: as reported by Statista, the US wholesaler sales have reached an estimated amount of around 696 billion USD with an increase of around 4 billion USD within only a one month period. You can only imagine the number of sales made on a global level.
Such incredible figures represent irrefutable evidence of the success of wholesale suppliers, proving that customers are truly satisfied with their services.
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Learn moreBut not all wholesalers contribute to these satisfying numbers. Some might offer you an amazing business relationship, while others may only disappoint you. Therefore, it’s important to bear in mind a few things instead of jumping headfirst. If you’re a newcomer in buying wholesale, chances are you neither have an idea where to start looking nor know what criteria to have in mind when the time comes to start eliminating candidates until you track down the ideal supplier.
To ease things up for you and prevent you from making wholesale sourcing mistakes, we’ve put together a couple of points you should always cover when having a conversation with a potential supplier. We’ll gladly teach you what are the must-questions to ask in order to ensure the supplier you’re interested in would be the right fit for your store.
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The best way to verify that the supplier you’ve chosen to collaborate with is reliable and sells genuine wholesale products is to find out as much information as possible regarding their experience and work history. Wholesalers who have secured a network of loyal clients and have been on the market for some time are certain to be more trustworthy and provide you with better wholesale service.
Of course, you can always do a full investigation by yourself by looking into their website, browsing the company’s name on Google, and reading reviews on Trustpilot. However, it’s even better to ask them directly as they may share details that haven’t been published online which could end up being decisive information.
Besides making sure the supplier has sufficient experience, store owners should prioritize finding vendors for your business that offers new clothing arrivals on a regular basis. For every store out there, the main source of success comes from keeping customers content which is best done when providing them constantly with the latest products.
This recurrent update on items will continuously draw their attention, making them keep coming back to your shop and eventually turning them into a regular clientele.
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Register nowIt goes without saying that product diversity plays a crucial role in retaining customers and averting them from checking out competitors’ stores. That’s why in your search for the finest wholesaler you should never forget to ask potential suppliers about the variety of products they have at disposal and estimate if that amount would satisfy your customers’ needs.
Therefore, don’t rush into choosing a supplier before confirming that they offer a wide-ranging portfolio of brands and products that’ll not only bring you happy and loyal customers but also assure you notable revenue growth. If you are getting into the fashion industry, make certain your supplier of choice covers enough categories of winning dropshipping products for both men and women to be able to meet shopping enthusiasts’ expectations.
In case your niche consists of selling high-end fashion products, it’s of the utmost importance to verify their authenticity as there are many suppliers offering knock-off items that you may end up purchasing without realizing they’re counterfeit goods.
So, when browsing for wholesalers of luxury brands remember to look for suppliers that stand behind their products’ authenticity and would stock your store with genuine brands. One example of a wholesale supplier that ensures 100% authenticity to each product in their portfolio is BrandsGateway.
The product catalog is every wholesaler’s most significant part of their website, giving prospective customers a sneak peek into their inventory, enough to make a general evaluation of the items they’re selling.
However, many business owners may stumble upon wholesalers that offer an extremely limited preview of their catalog, making the rest of the products available only after one decides to use their services. So, try to avoid these suppliers and stick with those who give clients access to check out their merchandise by registering for free like BrandsGateway and their catalog of the latest trending clothing items.
The minimum order quantity can vary tremendously from one wholesaler to another but it mostly depends on the type of products being sold. For instance, expensive products usually have a higher MOQ than those sold at cheaper prices because they’re high-quality authentic products that are obtained from authorized entities.
Thus, it’s best when clients are informed upfront about the MOQ in order to be able to calculate in advance their order expenses and see if they can fit them into their budget.
The location where the supplier’s merchandise is produced can say a lot about the quality of the products. Although many suppliers source their goods from authorized vendors and then sell them to retailers, outlet owners, or eCommerce stores, an even bigger number source them from unreliable manufacturers, some of which are known to have significant disadvantages such as the cons of Chinese suppliers.
Because of that, it’s highly recommended to check where your wholesale supplier sources their merchandise from prior to buying a poor-quality bulk of items.
The whereabouts of your potential wholesaler’s warehouses are another thing clients should take into consideration, especially because it can greatly affect the delivery time. Moreover, in addition to the price paid when purchasing the products, the buyer is also required to cover custom duties for exporting and importing merchandise from one country to another.
That being the case, try to opt for a wholesaler who has warehouses in several places around the world, such as BrandsGateway, which will not only reduce your expenses but also provide you with fast and convenient delivery services.
Another vital thing wholesale suppliers should inform you about is the approximate time it would take for them to deliver your orders. You wouldn’t want to find yourself in a situation in which customers can’t make a purchase of a certain item because your store is out of stock.
Therefore, just like previously mentioned, when choosing a supplier, keep in mind both the location of the warehouses and the time it might take for orders to be handed over to you.
In order for you to be able to keep an eye on your packages, ask your wholesaler if they offer the possibility for you to track your delivery. In that way, you can be kept posted on the status of your order at all times and be notified almost instantly in the case of any shipping delays.
Hence, make sure to pick out a supplier that would provide you with a tracking number, as BrandsGateway does with its clients, so you could constantly be kept updated on where your order stands.
Before trying to figure out delivery costs, order tracking, or shipping time, you need to find out if the potential suppliers you’ve been looking into ship globally or just locally. If they don’t ship to your location, you’d only be wasting your time with them.
You shouldn’t be surprised if you ever come across wholesalers who limit their shipping abilities and offer delivery services only within the countries their warehouses are situated in and sometimes including neighboring states. For that reason, always make sure that you work with a supplier that ships worldwide so that you can build an international eCommerce business.
Being aware of return and refund policies is crucial in the event of having to deal with damaged goods. Thus, it’s important to have a clear understanding of how your supplier manages situations when clients wish to return products or cancel orders.
Some might offer monetary reimbursement, some may provide store credit, while others might give out coupons or discounts. In addition, be on the watch for any hidden fees or additional charges that could be imposed by the supplier.
In most cases, suppliers rarely offer freight-collect services concerning the return of products. In other words, the buyers are the ones responsible for covering the shipping costs when sending items back to the wholesaler. However, there are suppliers that do bear those costs in the event of merchandise that is faulty, has been damaged, or wrongly shipped.
In order to benefit from a full refund in cases like these, suppliers are likely to ask you to provide them with photos of the products concerned and after they’ve accepted your request, they’ll be able to reimburse you for your loss. Therefore, have a good look at the terms and conditions of your wholesaler and take careful notice of the returns and refunds sections.
One more key question to include in your list is regarding the payment methods of the wholesalers you have set your mind on working with. Taking into account the pros and cons of various payment methods, depending on your preferences and possibilities, you might find some of them are less while others are more suitable for your business.
Thus, it’d be wise to opt for suppliers who present clients with the opportunity to choose among different types of payment. In this manner, you’d have the freedom to determine which option would work best for you.
Keeping your store profitable can be a challenging thing to do, especially for newbies on the market, and it might take some time to get the hang of it. In order to make sure you’ll be receiving a decent profit, don’t forget to discuss with your supplier the income you should expect for every item sold.
Select a supplier that offers great wholesale margins which will bring you an excellent financial standing and kick-start your store to stardom. But before that, make sure you know what profit margins you aim for and understand the difference between margin and markup.
When purchasing products in bulk, luxury brands particularly, wholesalers try to abstain from giving discounts. It’s an industry standard that has been around for a long time and suppliers attempt to stick with it. Nevertheless, during the holiday shopping season, chances are you’ll come across discounts for particular categories of products and brands.
So, stay in tune with your supplier so you don’t miss out on those opportunities.
As previously stated, before cutting a deal with any wholesaler, carefully go through their delivery rules and regulations. Examine the supplier’s shipping policy and see what actions they’d take in circumstances in which the products have taken a lot longer to arrive or, in worst cases, the incorrect order has been delivered.
You know that a wholesaler is worth doing business with when they not only supply clients with excellent products but also have at disposal exceptional customer service, giving store owners a memorable business experience.
Whether it’s about the above-discussed delivery issues, merchandise troubles, or something else, clients should always be able to lean on customer support for any kind of problem that may arise, and in that way, they can keep steady communication with the supplier around the clock.
To avoid any inconveniences, it’s essential to settle the payment terms with the supplier, meaning, to agree on when payments should be installed. Usually, wholesalers have clearly defined payment times that clients are expected to respect. However, for different types of items, there may be different payment terms to be met.
Hence, it’s important to inform yourself thoroughly about invoice deadlines so there won’t be any confusion or unexpected situations.
Last but not least, customer reviews and references exert an astounding influence on clients’ decisions. In a survey conducted by PowerReviews, 98% of consumers said that reviews are an indispensable step when purchasing merchandise, thus, giving them a decision-making role in the purchase process both in the B2C and B2B marketplaces.
So, it wouldn’t be a bad idea to request from suppliers credible reviews you could easily access and check for previous customers and their experiences. To illustrate, wholesaler BrandsGateway supplies interested retailers with such testimonials, furnishing them with evidence that BrandsGateway is legit.
As your store grows and expands, you’ll likely come across new wholesale suppliers constantly. Some of them might emerge immediately as the perfect match, while others might not be up your alley. To be 100% sure that they’re someone your store would benefit from working with, we recommend putting these questions to use when business talks are in progress. Thus, we advise you to have this list on hand so you can come back to it whenever you need to evaluate new partners and verify the reliability and authenticity of their services and company.
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About the Author
Proud bookworm, passionate content writer and devoted Arctic Monkeys fan. Always in the mood for travel and sightseeing.
The wholesale industry plays a crucial role in the supply chain, acting as a link between manufacturers and retailers.
As a wholesaler, you have the opportunity to purchase goods in bulk from manufacturers at discounted prices and then sell them to retailers or other businesses for a profit.
This article will guide you through the process, explaining what it takes to start a new wholesaling business successfully.
The wholesale industry is a dynamic and diverse sector that encompasses a wide range of products and services. Wholesalers serve as intermediaries, connecting manufacturers with retailers, e-commerce businesses, and other buyers. They play an important role in the distribution process.
One of the key factors of the wholesale industry is selecting the right product or brand to focus on. This is a key decision that can significantly impact your business’s profitability. In the next sections, we’ll explore the process of choosing the right product or brand.
Before diving into the wholesale business, it’s critical to conduct thorough research on market trends and demand. Understanding the current and future market dynamics will help you make informed decisions about the product or brand you choose to wholesale.
It’s important to start by examining customer behavior and preferences. This could include emerging trends, popular products categories, and new customer needs. You can gather data and analyze these trends in order to identify lucrative opportunities.
For instance, American Hat Makers is widely regarded as one of the best companies to work with for wholesale hats. We’re known for our diverse array of men’s hats and women’s hats that are designed to fit a variety of styles and activities.
Finding the right niche that aligns with the market and your interests is also critical. In this way, choosing an American hat company as a wholesaler would be an ideal choice to stand out from the crowd.
For more information on wholesaling hats with American Hat Makers click here.
Selling hats is an exciting and rewarding experience. They’re a popular accessory that’s in demand year-round and are sought after by a variety of customers. Since they’re widely versatile, and come in many different styles, it’s easy to find places to sell them. They have an attractive profit margin, as well.
Companies like American Hat Makers are great to work with and truly value their customers while taking the time to look into the ever-changing and growing market of hat sales.
Once you’ve decided you want to start a wholesale business and know the product or products you want to sell, like hats, there are a few more critical steps you’ll have to address.
While these steps are incredibly important, everyone’s wholesaling journey is going to be different so make sure you address your personal concerns in a way that makes sense for your business.
First and foremost you’re going to want to set up the legal structure for your business, such as an LLC or sole proprietorship. This will involve registering your business name and obtaining the necessary permits.
It may be necessary to consult with legal professionals during this step in order to understand exactly what’s required of you depending on what you’re planning on selling, where you live, and where your customer base is located.
With your product and company you can start working on a business plan. This will include outlining your target market, looking at pricing strategies, marketing plans, and determining your financial projections.
A good business plan will serve as a roadmap for your business and help you make the best decisions possible.
Next, you’re going to want to identify your target market. This will include doing research into retailers or businesses that you want to target as customers. You’ll want to research their needs, preferences, and purchasing patterns in order to understand where your business could align with their needs.
Setting up a distribution network is also incredibly important. It’s in this step that you’ll determine how you want to distribute your products to your customers.
This might involve setting up a warehouse or storage facility to manage inventory as well as establishing shipping and logistics procedures. You may want to consider using technological solutions in order to speed up your order fulfillment process.
There may be other licenses and permits that you need to get in order to operate your business. Make sure you do the appropriate research into your area and industry-specific regulations.
To be truly successful you'll need to start building a brand. Make sure that you invest in branding efforts to differentiate your business from others. This will include creating a professional website, developing a brand identity, and using social media platforms.
As your business grows, you’ll need to implement marketing strategies and sales tactics to promote your wholesale business and attract customers. This will mean utilizing online and offline channels, such as trade shows, industry events, and digital marketing, in order to reach your audience as effectively as possible.
Throughout the process of growing your business, don’t underestimate how important great customer service is. Make sure to focus on building strong relationships with your buyers by responding quickly to inquiries, processing orders quickly, and addressing any issues as soon as you can.
The more positive an experience that the customer has, the more likely they are to come back time and time again.
Starting a wholesale business requires careful planning, research, and strategic execution. By following the steps outlined in this article, you can lay a solid foundation for your wholesaling business and increase your chances of long-term success.
Remember, success in the wholesaling business requires continuous adaptation, staying updated with market trends, and providing exceptional customer service.
With determination, strategic planning, and a focus on quality, you can thrive as a wholesaler in any market you choose.