Product sourcing is one of the crucial steps in a wholesaling business. How and from where you procure your supplies largely determines how successful you will be as a wholesaler. Therefore, it is essential for you to spend some time finding and researching the best wholesale sources so you can get good quality products at reasonable rates.
Here Are Some Tips For Product Sourcing
Obtain Your Sales Tax ID:
A sales tax ID, or resale certificate, allows you to buy your supplies without paying sales tax on them. This certificate ensures the seller that you will collect sales tax from your customers and pay that tax to your local sales tax authority. You should get your resale certificate before approaching manufacturers and distributors; or you will not be taken seriously. Usually reputed companies do not like to sell their merchandise to wholesalers that do not have a business license or sales tax ID.
Join Wholesale Forums:
You may be wondering what product sourcing has to do with wholesale forums. Joining a wholesale or dropship forum could help you get references of genuine wholesale sources. Usually, manufacturers and distributors with a good track record and excellent products and services are so overloaded with orders that they do not feel the need of advertising their businesses. You can get their references if you have good business contacts. In addition, what a better way to network businesses than joining a wholesale forum, where retailers, manufacturers, wholesalers, distributors, and suppliers participate in discussions and share their knowledge and information.
You should send e-mails to short-listed suppliers requesting them to send their quotes to you. Your e-mail should be professional. At the beginning of the e-mail, you should introduce yourself. For example, you could write “I am XYZ from ABC Ltd”. Then, you should explain your requirements and ask for quotes. Remember, how you write your e-mail is one of the factors that decides whether you will receive a response from the supplier or not. Once you receive the quotes, you should compare the rates with other suppliers. Also, carefully read the fine print of the deals.
Ask For Samples:
Never make a deal with a supplier without checking out some samples of their product. If a supplier is located close by, you should personally visit their warehouse to check the quality of their products. Otherwise, you should ask them to send the samples. Samples will give you an idea of whether or not the supplies will meet your requirements and expectations.
Negotiating with distributors, suppliers and manufacturers is not easy when sourcing products from China. It requires specific skills as well as patience. Before you approach a supplier for negotiations, you should do some homework. Get information about suppliers such as prevailing wholesale rates, quantity discounts, average shipping rates and time, minimum order requirements and payment terms. This will familiarize you with the market condition and help you in striking the best deal.
These product-sourcing tips can come quite handy not only for traditional wholesalers, but also for wholesale dropshippng and e-commerce businesses.