First of all, you should have a federal tax identification number to be able to engage in business. Next you also need a seller’s permit before you can sell. These are two of the most important documents you need when you buy wholesale.
There are a lot of wholesale companies and distributors everywhere. Almost all items have corresponding wholesalers. With the proliferation of people opting to do buying and selling as a business, usually in the comfort of their home, you can find merchandise anywhere, and of course you also have more competitors.
Here are some tips that will help you buy wholesale merchandise for your small business.
- Decide what goods you want to sell. Check the market first and see what is being sold, what items are frequently bought, niche markets that need to be filled, their location, if possible the age range and income of buyers.
- Identify what items you are comfortable in selling. You need to have background knowledge in the goods that you are going to sell so that you will be able to easily follow trends.
- Will you be selling online, on a physical store or will it be a combination of both? If this is a physical store, will you be servicing just the local community?
- Once you have identified and provided answers to the basic questions for a business owner, then you go about finding the suppliers that sell wholesale.
- Find your sources through online search. There are wholesalers that are based in the US, and a lot are also based in countries that manufactured good and products for US-based companies, like in Asia.
- You can try checking with some local manufacturers. This can usually be done with small manufacturers.
- Some importers sell directly to local wholesalers or retailers being the sole distributor of certain products. Some regional distributors may also be tapped since they can break up a big consignment into smaller lots for small wholesalers and retailers.
- If dealing with a manufacturer is too big for you, ask if you can get a list of their distributors that you can get in touch with.
- When you initially deal with a distributor, establish a good rapport. Be prepared to talk their language. Check what their terms and conditions are. You need to know what the minimum order requirements they impose. You also have to know their wholesale price. You also have to inform them the volume that you need. You can do this through email. Contact other distributors and compare prices.
- You can also subscribe to trade magazines, join social networks and forums to get leads.
- Another thing you can do is to attend trade shows. One good one to attend is the one being conducted by the Hong Kong Trade Development Council or HKTDC. They organize trade shows for buyers in different product categories all year round. They have four offices in the US and an office in Canada. You can get in touch with them so you can link up with wholesalers and manufacturers.
For initial purchase, as you are still establishing contacts, you may pay more for the merchandise even if it is wholesale. You will get more discounts and incentives as your business grow and you increase your order. Start small and see how the business grows.