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What Are Wholesale Vendors & How to Find Them

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Last updated 1 year ago

Sourcing inventory is an important decision for ecommerce merchants. Working with a wholesaler has advantages, but you need to make sure it's right for your store. How you choose to supply your store is one of the most critical decisions you make as an eCommerce merchant. For many, working with a provides them with an opportunity to diversify and increase their inventory. It is important that you find the best wholesale vendors who offer great prices, deliver on time, and provide reliable customer services. In this article, we'll help you understand the different types of wholesale suppliers, the benefits and drawbacks of , the best places to find them, and how to buy from them. A wholesale vendor is a business that buys products from manufacturers in bulk and sells them to other retail businesses. They play a key role in bridging the gap between manufacturers and small business owners. Instead of operating a store, they focus on supplying retailers with merchandise so that they can sell to final customers.

The Different Types of To find reputable wholesale vendors in your niche, you need to understand your industry's distribution channels. This is because there are many players involved in the wholesale process, with different wholesalers serving different markets.

That means a product can follow different distribution channels when going from the manufacturer to the retailer. Here are the different types of wholesalers you need to be aware of:

Manufacturer: Sometimes, you may choose to source your products directly from the manufacturer. This happens when dealing with small or one-person manufacturers. In this case, your manufacturer is your . Importer/Exclusive Distributor: This is a company that has the sole right to import and distribute a product in a certain country. The company may sell directly to retail stores or distribute the product to other smaller local wholesale vendors who in turn sell to retailers. Wholesaler/Regional Distributor: These are regional wholesalers. These individuals source for boxcar-sized lots and then deliver to local wholesalers who then sell to retail stores. Jobbers: These are individual wholesalers who make to local grocers and retail stores. Benefits & Drawbacks of Wholesale Vendors Traditionally, wholesale vendors only work with brick-and-mortar stores. But with the acceleration of eCommerce, there has been a rise of small business wholesale suppliers that work with eCommerce retailers.

Here, we look at the benefits and drawbacks of to SMEs in the eCommerce space.

Benefits

Consistent supply to products: Wholesale vendors purchase products in bulk from manufacturers. They are therefore well-positioned to provide a reliable and steady supply of products to store owners at discounted prices. Navigating minimum order quantities and customs: Small businesses find it hard to purchase products directly from manufacturers due to minimum order requirements. help SMEs to navigate these requirements by purchasing goods in large quantities from suppliers and then selling to them in smaller quantities. Better prices: Wholesale vendors purchase products in bulk from the suppliers. They, therefore, qualify for better prices and discounts. They then pass these benefits to retailers by availing goods to them at discounted prices. Geographical access to products: With a , you are not restricted to local suppliers, hence you can access a wider range of products to choose from. In case you want to expand your business, you will find a wide range of new products to help you meet these goals. Quality control: Reliable wholesale vendors do quality checks before importing their products. You are sure to get high-quality products without having to do a lot of quality checks yourself since this has already been done for you. All you need to do is track how their products are performing with customers. You can always switch to a different supplier if their items get too many negative reviews. To find the best to work with, you first need to figure out how you want to fulfill your orders. Do you need them to dropship directly to your customers, or do you want to do self-fulfillment? You also have the most popular option of going with a third-party fulfillment company.

Deciding your fulfillment process is important because it will help you weed out wholesale suppliers who don't offer the type of fulfillment you are seeking.

Here are some things you need to consider when deciding whether a wholesale provider is right for your business:

Product offerings: You need to check whether the offers products in your niche. Price: Shop around and compare prices from different wholesalers. Working with wholesalers who offer great prices will give your business a competitive advantage in the market. Reliable shipping: Late deliveries can cost you a lot of business. Shipping costs are also another thing to consider. Look for wholesalers who offer reliable shipping services such as tracking, automated shipping alerts, and guarantee timely delivery. Easyship can help you streamline your B2B shipping. Customer Service: You need to work with a wholesaler who will be there when you need them. Here is how to find wholesale providers for your business:

Do an online search: A great way to find wholesale suppliers is via online search via Google or through major B2B marketplaces such as GlobalSources.Com or Alibaba. Use the US customs database: You can leverage the Jungle Scout supplier database to spy on your Competitors' suppliers. This database documents all the shipments imported into the US by different companies. Information in this database is freely available and you can browse different shipments to see the suppliers your competitors are using. Attending trade shows: Attending major trade shows like Global Sources Expo or Canton Fair in Hong Kong and China is a great way to meet different manufacturers and suppliers, see their sample products, and establish business relationships with them. Subscribe to Your Industry's Trade Publication: You can find names of small business wholesale vendors or small manufacturers in a trade magazine or an online newsletter that provides daily or weekly industry news and updates. Join Industry groups and forums: You can get valuable information about wholesale vendors from experienced eCommerce retailers in a group or online forums. Professional networks: Joining your local Chamber of Commerce or other small business networking groups is also a good way to build professional business connections that can help you find reliable wholesale vendors.

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