Sourcing Brand Name Products
by Carrie Hinkel on August 6th, 2008
If you’ve decided to sell name brand products in your store, you’re in luck. Because of the popularity of certain brands, they are easy to find and buy at wholesale prices. However, there are some very real risks to look out for when trying to source your products.
Important things to know about brand-name product sourcing
1. Fake “factory authorized” distributors : It is a must that you buy your products from distributors that have been authorized by the manufacturer to wholesale their products. Most brand-name manufacturers will not sell directly to you, so you will need to go through a distributor. It is easy to find a factory-authorized distributor for a particular brand-you just call or email the manufacturer and ask for a list of their wholesale distributors. If you search for distributors on the web there are literally thousands of companies who try to fool retailers into thinking they are factory authorized distributors, when in fact they will just take your order (which is significantly marked up in price) and place the order with the real factory authorized distributor.
2. Distributors selling fake brand name products : Companies seem to be popping up all over selling brand name goods that are actually knock-offs with inferior designs and quality. Anything from pocketbooks to clothing to watches are being sold online. You can eliminate being fooled into dealing with these counterfeit merchandisers by asking the real brand-name manufacturer who their factory-authorized distributors are. It’s that simple to avoid, but dozens of companies are still being scammed everyday.
3. Minimum orders : While the fake distributors may let you order in any sized quantity, the real factory-authorized distributors will usually have set minimum orders. However, most will let you mix the order with various products, all counting towards the minimum order quantity or dollar amount.
4. Payment terms : Once you are an established retailer you will probably have no problem getting net 30 terms from the distributor you are working with. However, for your first order you will most likely be required to pay upfront with a credit card or check.
Other ways to source brand-name products
If you are just looking for a recognizable brand, and not the latest, greatest model then buying discounted merchandise on eBay or from a closeout liquidator may be a great option. They may not be a steadily reliable source for the same product every time you buy, but most times you can get a real bargain. For instance, last season’s clothing style from a hip brand, last year’s model of a popular watch, etc. A lot of times when the new styles roll out, the old ones end up with liquidators or on eBay. You will usually be required to buy a certain sized lot, but many times it is much less than a distributor’s minimum order. Be sure to always shop around to make sure you are getting the best deal. Of course, thoroughly researching the company you will be buying from is always a must. With eBay sellers, be sure to read their feedback rating so you know if they are a reliable and trusted company.
Hi,
I am opening up a store in the next few months and I am looking to purchase a variety of designer clothing, bags, accessories etc., plus streetwear items.
I am looking for a supplier with reasonable prices.
Cheers…
Nancy
August 16th, 2008
at 11:08 am
Great post, everyone could learn a few things reading this.
Wholesale Products
September 19th, 2008
at 12:16 pm