First, you will need to decide what types of products you want to carry. It’s best to be flexible with brands, colors and sizes, as that will open up your opportunities when dealing with suppliers.

Wholesale product sources

*Manufacturer: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.

*Distributor: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order. Once you’ve narrowed your product category, you can find distributors by searching online or by getting a distributor list from a manufacturer.

*Factory: You can get a great deal on price if you agree to import a 20′ or 40′ container of product direct from the factory. Lead times are typically 30 days or more and you will need to set up shipping with the factory or the manufacturer. Doing thorough online searches for importing product in your category will lead you to many factory sources who sell direct.

*Liquidator: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good. Many liquidators have online sites where you can browse products and order right online.

*Online Auction: By persistently checking various online bidding sites, you can end up with a bargain-priced wholesale lot. Be sure to ask the seller if the item is a closeout or if you will be able to purchase again in the future. Reading the seller’s feedback will give you information on how they have done business in the past.

*Trade Shows: Attending trade shows is a great way to find the newest products and get wholesale contacts from a variety of sources. Both manufacturers and distributors exhibit at trade shows, so you will have plenty of products to choose from and you will be able to meet your supplier face-to-face.

Choosing the right vendors

After you’ve decided on the sources for your products, it will be important to pick your particular vendors. When dealing with manufacturers, distributors and especially overseas factories you will want to do an online search on the company name, read any online feedback and ask for references. You want to make sure that they are reliable, available and offer high-quality products. Be sure to find out their policy on returning defective and overstocked merchandise.

A variety of choices for acquiring your products means competition on price, service and shipping-all good things for you! It may take some research time in the beginning, but once you have a good set of product sources buying will become automatic and less overwhelming.

In our last article on researching wholesale vendors, we talked about the different types of wholesalers you can source from and how to choose the best option for you. In this article, we’ll be talking about the importance of always thoroughly researching each wholesaler you are considering doing business with. Taking the time to do so before you give them your money will prevent future headaches and empty bank accounts. Here are some simple ways to ensure you are dealing with a reputable wholesaler:

Where to go to research a wholesaler’s background:

- The Better Business Bureau – www.bbbonline.org : See if any complaints have been filed against them.

- The Rip-Off Report – www.ripoffreport.com : See if any past customers have made complaints about the company.

- Dunn & Bradstreet – www.dnb.com : Get in-depth company information such as how long they’ve been in business, how many employees they have, where they are located, etc.

- Alexa – www.alexa.com – By entering in a website and clicking on the “site info” link you can see if others have made comments about them, how long they’ve been online and how much web traffic they really get.

- Who Is – www.whois.com – Find out who owns the domain name and where the company is located.

- Google – Doing a search of the company name and website will let you see if past customers have made any comments regarding them in online forums or blogs.

What questions to ask once you’ve weeded out the potential problem-makers:

1. What companies are you currently working with? Write down every name and then call a few and ask how their dealings have been with that wholesaler.

2. Are you a factory-authorized wholesaler for any manufacturers? If so, which manufacturers? Write down which manufacturers they claim to be an authorized wholesaler for and then call that manufacturer and ask them. Typically a manufacturer will only have a handful of authorized wholesalers, so this will be easy to find out if they are fibbing.

3. Will you email me a copy of your current wholesale price list? Once you have that, do an online search for several of the items and see what prices you can find, both wholesale and retail. You want to make sure that their prices are truly wholesale and not just a third-party markup.

4. What are your payment terms? Do you offer Net 30 terms? As a new buyer, you will most likely be asked to pay upfront. Always pay with a credit card, if possible, because if for some reason you don’t receive the merchandise the credit card company will be able to get your money back for you. Never work with a company that demands a wire transfer, Western Union, Money Gram or other unsecure methods of payment.

5. What is your minimum order? When comparing companies, it will be helpful to know how much you are required to initially purchase.

6. Is shipping included? Some wholesalers include shipping at no cost, while others charge extra.

7. What are your return policies on defective and damaged merchandise? Some wholesalers will give you a credit for faulty merchandise, while others won’t.

There are a variety of choices for finding wholesale products-and that means competition on price, service and shipping, and that’s good for you! It may take some research in the beginning, but once you have a reliable set of wholesale product sources buying will become automatic and much less overwhelming.