Frequently
Asked Questions
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Q:
How do I find wholesale products to sell?
A: Let's
not beat around the bush, this is why we're all here, right? Well,
I may sound a bit like a broken record if you've read other parts
of the site already.
If you haven't, you may be dismayed to find out that an internet search
is not the best way to go about finding wholesale product suppliers
or dropshippers.
The reason is this: wholesale suppliers don't need to advertise or
recruit on the web to find new retailers. With that in mind, why would
they spend the time, effort, or money required to get onto the web.
Not only that, would we want them to? I'd venture to say no! All this
would do is raise the prices they would need to charge for their products
which would, in turn, increase the retail mark up and ultimately the
final price for the consumer.
To find a wholesale supplier
you first need to know what specific product you want to purchase
at wholesale!
For
this example let's say we want to sell Canon Digital Rebel cameras.
Here are the steps you'll need to follow in order to locate a wholesaler:
-
Locate a phone number for Canon (your target product's manufacturer)
and call them.
-
Tell them you're a retailer who would like to start selling their
products and ask them to put you in contact with their distributor(s).
You may actually be able to get a list of distributor(s) and their
contact information from the manufacturer's website if they have
one.
-
Call the distributor(s) and tell them you are a retailer who would
like to establish an account to purchase Canon products at wholesale.
Simple,
right? - Read on to find out!
Q: What are the requirements
for establishing a wholesale dropshipping account with a wholesale
distributor?
A:
All true wholesale distributors will require a retailer to present
official proof of business registration. This is typically a Federal
EIN or Business Tax License such as a Sales and Use Tax permit.
They
may also require a prospective retailer to submit pictures of their
storefront and store interior. In fact, many true wholesale distributors
don't even want to do business with "web only" retailers.
Q:
What is the difference between a wholesale supplier and a dropshipper?
A:
The short answer is: There isn't a
difference. A dropshipper or dropship supplier by definition is a
wholesale supplier who offers dropshipping as an added service.
The truth is not all wholesalers offer dropshipping as an option,
or they may only offer dropshipping as an option to established performers
or preferred retail clients.
The long answer is: there appears to be a new breed of dropshippers
that have evolved specifically to cater to eCommerce businesses and
or eBay retailers. These "internet dropshippers" appear
to aggregate products from multiple wholesale suppliers into their
own warehouse facilities and then offer dropshipping services to their
members.
I
would personally consider these businesses middlemen by definition,
but there appears to be a market for their services. I assume these
internet dropshippers are thriving because so many of us are becoming
so accustomed to doing everything online they are filling a gap between
the older generation retailers and modern eTailers.
One
of the primary strengths of this new dropshipping breed seems to be
the elimination of minimum order requirements which can be too steep
for many fledgling eBusiness owners to handle. The new eBiz owner
will, in place of the minimum order requirement, become subject to
a sign-up, account set up, or monthly membership fee.
Q: What are the requirements
for establishing a wholesale dropshipping account with a wholesale
distributor?
A:
All true wholesale distributors will require a retailer to present
official proof of business registration. This is typically a Federal
EIN or Business Tax License such as a Sales and Use Tax permit.
They
may also require a prospective retailer to submit pictures of their
storefront and store interior. In fact, many true wholesale distributors
don't even want to do business with "web only" retailers.
Q: Are there any minimum purchase
requirements to open a wholesale or wholesale dropship account?
A:
I've found that many true wholesale suppliers will have a minimum
purchase amount for an approved retailer's first order. The amount
may vary, but it is typically around $5,000.00 for a first order and
then $1,000.00 a month after that.
That
may seem quite intimidating if you are just trying to start up an
eBay or home based eBiz. Unfortunately, most wholesale suppliers don't
want to do business with small home based retailers.
Last
update: March 18, 2009
