How to Find Wholesalers for a Business

There are a number of ways to find wholesalers for your small business, whether you are selling from a retail store, the Internet or directly to consumers. The key is making sure the wholesaler you select sells your types of products as well as any replacement parts. Try to find as few wholesalers as possible to supply your products because it simplifies the ordering and delivery processes. There are several other things to consider as you search for wholesalers.

Where to Search

  1. Search for wholesalers in your local area. You can avoid shipping costs if you pick your items up at your wholesaler's venue. You also may be privy to more specials from local wholesalers, especially if they advertise in local newspapers. Read various trade publications related to your industry. An example of a trade publication is InStoreMag.com, which is for jewelry retailers. Wholesalers often place ads for distributors in trade publications. Go to TradePub.com, according to "Business Know-How," an online business reference site. TradePub.com distributes free publications for various industries. Order some of the retail publications and look for wholesaler ads. Two large wholesale sources include WholesaleCentral.com and Wholesaledir.com. Look for your particular product category on these sites. You also can check for wholesalers through the National Association of Wholesaler-Distributors at NAW.org.

Questions to Ask

  1. There are several questions you should ask your wholesaler before conducting business with it. Inquire about minimum orders. Larger wholesalers may require you to purchase a minimum number of items, such as 100 units. This is cost-prohibitive for small catalog or Internet companies whose customers purchase single units. Find wholesalers that allow you to buy in smaller lots or quantities. Compare unit costs of the various wholesalers. The lower your unit costs on products, the higher your profit margins. Ask your wholesaler what its turnaround time is for orders. In other words, how soon does it ship products after you place an order. Also, find out if you can return any damaged merchandise for a full refund.

About Dropshippers

  1. Dropshippers are wholesalers that mail products out to the customers of independent business owners. For example, an online vitamin company may have its dropshipper handle all its packaging and shipping. The advantage of finding and using dropshippers is that they save you the trouble of packing your own items. Dropshippers are more experienced in shipping out products. Most dropshippers allow you to order single units of products at wholesale prices. Moreover, some cities or towns have certain zoning laws that prohibit customer traffic in residential areas, according to the Small Business Administration. These zoning laws also may limit the amount of inventory that small business owners can store at home. This can be particularly troublesome for direct sellers or mail order operators who work from home.

Considerations

  1. Always make sure you are dealing with legitimate wholesalers. Check with the Better Business Bureau in the city or town in which your wholesaler is located. Ask if any businesses have complained about the practices of certain wholesalers. Also, make sure you are dealing with actual wholesalers and not middlemen. Wholesalers buy directly from manufacturers. Middlemen buy from wholesalers and, consequently, charge higher unit costs for their products. Go to Whois.net to find a list of legitimate wholesalers, according to Entrepreneur.com.