How to Become a Wholesaler

A wholesaler is the middleman who purchases products from manufacturers and other companies at prices less than retail, then marks the price up a bit and resells the products to his customers for a profit. However, before you set up your wholesale business, you need to decide what type of products you are going to sell. You could sell a variety of products, or choose to focus on only one product. Some of the products you could choose from are domain names, clothes, jewelry, trinkets, seasonal products, electronics, computers, software or books. Now that you have determined the products that you want to sell, keep reading for more information on how to become a wholesaler.

Things You'll Need

• Business license (depending on your state's laws)
• Tax ID number
• Business account
• Internet access
• Business cards
• Extra storage space

Instructions

1. Depending on your state’s laws, you may need to obtain a license before you can operate a wholesale business. Check with your local city hall to find out what license or licenses you will need to become a wholesaler.

2. Obtain a tax ID number. Some companies will require a tax ID number before they’ll work out a deal with you.

3. Visit a local bank of your choice to set up a business account.

4. Decide what products you want to sell, and then search the Internet for information about those products. You will want to learn about the products you plan to sell, because knowledge of the products will help you become a better wholesaler and increase your chances of having companies deal with you.

5. Attend trade shows and get to know vendors. Ask them what kind of deal you could make to help them sell their products at wholesale cost to your customers. Be sure you leave a business card in case they want to contact you later to discuss the deal further.

6. Browse Wholesale Hub (see Resources below) for companies that will dropship products to your customers for you. The directory at Wholesale Hub will tell you which companies offer dropshipping, if they require a minimum order and more. Make a list of the companies that interest you, and then visit their website to find out how you can get started.

7. Submit an application to become a dealer for CWR Electronics (see Resources below). If you're accepted as a dealer for CWR Electronics, you'll receive wholesale pricing, free dropshipping with no minimum order and more.

8. Buy in bulk so you can resell to your customers in smaller quantities. This will cost you money, but it’s the best way to go, and if you play your cards right, you’ll earn your money back plus more. By purchasing in bulk, you get lower prices and can markup the price in order to make a profit (see Resources below).

9. Contact companies and let them know you’d like to become a wholesaler of their products.

Tips & Warnings

• If you decide to buy in bulk, make sure you have a place to store the products until you have sold them. Some places you could store products are a garage, attic, outbuilding, rented storage building or an extra room in your home.

• Watch out for scams. Research the companies thoroughly before making your final decision.

Resources

• Read this Article in Spanish
• Dollar Days--a great place to buy a low quantity of products at great prices!
• Wholesale Hub
• CWR Electronics