Starting a wholesale business is all about finding the right suppliers. The best wholesale supplier will meet your needs without hurting your overhead. Making the right choice is crucial for your future success. How well your supplier stocks and distributes your products will ultimately have a huge impact on how you do business. It’s a big decision, but having a good plan makes it easier.
How the wholesale business works
Manufacturers will sell their products in large quantities to wholesale distributors, who then markup and sell those quantities to retailers and other businesses. Retailers and online sellers, in turn, sell these products in smaller quantities and at a higher price in order to generate a profit.
Sometimes manufacturers will offer wholesale products right to their retailers, and sometimes sellers need to work with a distributor in order to have access to the products they are offering, or to get those products to their customers.
With e-commerce on the rise, being able to stock, store, and ship the right amount of product at the right time to reach the global market is essential to online stores.
Domestic vs overseas suppliers
There are a few key differences to consider when deciding between enlisting a domestic supplier or an overseas supplier. Remember, everything has pros and cons, but there will always be one wholesale supplier that suits your needs the best.
Domestic suppliers have the advantage of proximity. In general, they are closer and more accessible to your local marketplace, which means reaching consumers in your area is faster and more convenient.
They are also usually able to meet tighter deadlines or rush orders in a crunch, because they are close by. But, this generally works best when your quantities are smaller as some domestic wholesale suppliers do not have the large factories or manpower to accommodate huge distribution quantities.
On the upside, shipping costs from domestic suppliers are typically quite affordable within local boundaries – a great aspect for those looking to save on their overhead.
Overseas wholesale suppliers are a good consideration for businesses looking to obtain more reach in the global market.
Generally speaking, working foreign wholesale manufacturers can reduce your cost of labor by a notable amount, but you will pay for it on the back end when you get your shipping invoice.
While overseas suppliers can usually accommodate a massive wholesale quantity, they also will require you to purchase one, which may not always be in your budget.
Working with foreign suppliers also means a longer wait time for shipping and distribution, which means less convenience for you and your domestic customers.
10 steps on how to find reliable wholesale suppliers
- Start with a quick Google search. Using google can provide a lot of really great insight for where, and how you should conduct your research. While the #1 wholesale manufacturer on Google may not be where your research ends, going this route can show you what the top competitors are offering.
This information can help you to set the standards for your future B2B partnerships, and give you an idea of how much you should set aside in your budget.
- Do some local marketplace research using social media platforms like Facebook. Facebook is a great, but often overlooked search engine for market research. Think about how many people and businesses use Facebook everyday to connect with each other.
There are so many Facebook groups dedicated to every niche you can imagine. Wholesale manufacturing is big business, you might find forums where you can ask for advice from a more experienced wholesaler, learn about local deals from suppliers in your area, or even link up with the perfect
- Sign up for some professional networks. Joining forums on professional networks like LinkedIn is another great tool. Just like Facebook, LinkedIn and other online professional networks provide opportunities to meet and greet people in the industry.
- Check out your local business directories for suppliers and manufacturers. You never know what opportunities might be waiting for you in your very own neighborhood!
Online wholesale directories are great options because they can expose you to a broad range of suppliers in a variety of areas.
But, if you prefer a more up close and personal relationship with your wholesale supplier, than local directories can really help you zoom in on your search.
- Get business referrals from other local businesses. If you have relationships with other business owners, asking for a referral is a very direct way to find the best wholesale suppliers in your area.
This is a great opportunity to see not only who wholesale businesses like yours are working with, but why they chose them.
Referrals from local businesses or partners can give you in-depth insight on whether a supplier is worth the money or not.
- Lookup and attend virtual trade shows. Nothing beats meeting a representative from a business that you’d like to work with in person.
At a trade show, companies who offer B2B products and services set up shop to meet and greet potential clients.
Attending a tradeshow can help you meet wholesale suppliers in your sector and see what they have to offer.
- Get to know your local supply chain. Knowing the distribution channels available to you can help you identify your needs as well as provide you with some decent networking opportunities.
There are several ways that a product can reach a customer, and understanding which is best for what will help you to narrow down the type of wholesale supplier you’ll want.
- Take advantage of B2B marketplaces. B2B marketplaces allow businesses to connect and do business with each other in real time.
If you’d like to get started right away, a B2B marketplace allows you to purchase large quantities of product from a wholesale supplier in a one-off sale.
Websites like this also put you in touch with global distributors, but you’ll have to warehouse and ship your own inventory if you want to go this route.
- Be as specific with your goals as possible. Knowing exactly what you’re looking for in a wholesale supplier will help you to make the best possible choices when doing your research.
Do you want a wholesale supplier who can do dropshipping? Or maybe you need someone with a quick turnaround. Details matter as every wholesale business is unique.
- Get a consultation. Once you’ve seen what’s out there and narrowed down your search, the next logical step is to get a consultation.
Meeting with agents from potential suppliers allows you to draft a prospective plan for working together. This allows you to test the waters before making that final big decision.
Why choose Hygea Natural?
Hygea Natural offers an extensive product line, and fully customizable service options. We are dedicated to meeting your needs whether you are interested in domestic or global wholesale.
Hygea Natural will help you develop, stock, store, and ship your product anywhere in the world with our incredible private label and drop shipping programs. When you work with us, setting up shop is as easy as 1-2-3! Call today for a consultation.
There are a lot of factors to consider when finding a wholesale supplier, but that doesn’t mean it has to be a scary decision. It’s all about knowing where to look, and what you’re looking for. Finding a wholesale supplier that meets your unique needs will make choosing a whole lot easier.