How to Buy Wholesale Products
The retail industry is one of the most prominent businesses in the United States, with big names like Wal-Mart and Target operating alongside millions of small proprietor-owned establishments. Regardless of size, though, all retail establishments must get their merchandise from a wholesale source, and business owners can buy wholesale products from a number of sources.
Other People Are Reading
Instructions
-
-
1
Determine the types of products you wish to sell. Because wholesalers often offer myriad product types, many retailers make the critical mistake of trying to sell too broad a range of products. Before you begin to shop for or purchase wholesale products, be certain you understand your business and customers, then restrict your wholesale buying to products suitable to your operation.
-
2
Identify a wholesale source. The selection of wholesale suppliers is virtually limitless, though many businesses deal only with a handful of wholesale companies. Wholesalers like World Distributors offer a wide variety of products in an attempt to offer as many items as possible to as many retailers as possible. In contrast, wholesaler-retailer matchmakers like TradeTang.com match retailers with prospective wholesale distributors.
-
-
3
Set up an agreement with wholesalers. When you have identified one or more wholesale suppliers, it may be necessary to enter an agreement with the suppliers you decide to work with. Different wholesalers have different business requirements, and some may be more difficult to buy from than others. The wholesaler will likely ask you to complete a batch of paperwork and return the wholesale agreement along with a copy of your business license. Complete and return this information in order to establish your wholesale account.
-
4
Buy products, but be prepared to buy in bulk. While some wholesalers allow customers to purchase in lots as small as one item at a time, many wholesale distributors require customers to place orders that meet a minimum dollar amount or item count. Each wholesaler has its own ordering requirement and may stipulate that orders be submitted on a special order form, online, or even by telephone.
-
5
Pay for the purchase. Depending on the wholesaler agreement, payment may be required up front when the wholesale products are ordered, or it may be deferred through the use of a purchase order. Regardless of the method your particular wholesaler requires, be certain to remit payment as described in the wholesale agreement in order to maintain a positive retailer-wholesaler relationship.
-
1
Tips & Warnings
Many retailers maintain agreements with a number of wholesalers in order to broaden their product selections and to secure products from one supplier when another may be sold out. Be sure to note all requirements of the wholesale agreement and follow them closely; some wholesalers will cancel a wholesale agreement for seemingly minor violations of the agreement. If the wholesaler requires payment up front, consider using a business credit card dedicated to wholesale purchases and ask the wholesaler to keep the card on file; having a credit card on file with the wholesaler may make the wholesale buying process easier and more convenient.
Some wholesale suppliers require a minimum number of purchases within a specified time frame; failure to meet this minimum may result in cancellation of the supplier's wholesale agreement.
