Approaching Wholesalers and Doing Business Online

When approaching a wholesaler to do business, you must consider several things. What products are you looking for and what is your budget? Are these products easily counterfeited or are they difficult to source or in high demand? Is your supplier a legitimate source and able to deliver on time? Finding out as much as you can about the products you are interested in and the supplier you want to deal with is crucial to starting a business relationship.Knowing about the products that are offered by the wholesaler and his price list is a good way to organize your approach. After researching the products and potential profitability, are the prices realistic or too good to be true? Many new sellers are under the impression that they can purchase products at wholesale for 40-80 below retail. This is usually not the case and many ambitious people find out the hard way. Either the products are counterfeit or the goods are never delivered. Don’t be afraid to ask questions; a serious businessperson has nothing to hide and is always interested in making a sale. How much merchandise do you have to purchase to receive the lowest wholesale price? What are the payment and delivery terms? Does the wholesaler use and online escrow company? Are they willing to do business with you if you want to use an escrow service? Many wholesalers have long delivery terms because they are part of a broker chain; make sure you know if you’re dealing with a broker or an actual distributor or manufacturer. Ask for proof of stock photos, physical inspection or a 3rd party SGS inspection. Unless you have 100 confidence that they can deliver product, you should be wary of dealing with brokers. Often times deals fall through and it can seriously hinder your business.Once you find a reputable wholesaler, make sure that you are clear on all terms and have everything in writing. Submit a letter of intent and an ICPO. Once everything is agreed upon, make sure that your method of payment is safe and secure. If everything works out, congratulations. You now have a new supplier. Just remember to always protect yourself from every angle just in case of late delivery, non-delivery, or fraud (some scammers try to earn your trust before they steal a large amount of money). The key to a solid business relationship is communication and trust.Copyright www.b2bideas.comMarketplace and resource for buyers, sellers, wholesalers and distributorsPermission is granted for distribution as long as the article is copied in its entirety and not modified.

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