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A Small Business Guide to Wholesalers

What are Wholesalers?

 

Wholesalers are people or businesses that purchase goods (usually in massive quantities), and resell them to retailers.

 

These businesses used to be closer to the market they supplied, so small businesses could inspect the products.

 

But with the rise of globalization, consumers aren’t as scared of the internet.

 

People don’t mind purchasing supplies from across the world, so wholesalers can usually be found closer to manufacturing meccas like Vietnam, China and South Korea.

 
 

What Makes Wholesalers Worthwhile?

 

Nothing is better in business than a win-win situation. That’s the beauty of a relationship between wholesalers and small businesses: both come out on top.

 

The Price is Right

Buying in bulk is always cheaper, and that’s the way of the wholesaler.

 

Luckily for small businesses, this means low costs and a large supply infrastructure that’ll never run out.

 

In fact, your wholesaler probably wishes that you ordered them out of stock.

 

Buying wholesale means cheap product prices for consumers, which helps your small business remain competitive.

 

Here’s the kicker: wholesalers are often not required to charge buyers sales tax in the US.

 

More savings, anyone?

 

Wholesalers Win Too

Small businesses aren’t the only ones gaining from this relationship.

 

There’s no business that wants to sell their products quicker than wholesalers. Warehouse space is their livelihood, and dusty merchandise won’t pay the bills.

 

Small businesses are purchasing products from wholesalers so they can resell to their domestic market back home.

 

Small businesses are purchasing products from wholesalers so they can resell to their domestic market back home. This is what the wholesalers want: an enormous market that requires small businesses to purchase mass goods from them.

 

In a way, your small business acts as a promoter for wholesalers, showcasing their products and their prices.

 

If the goods are unbeatable, consumers will let small businesses know through sales, and wholesale warehouses will empty.

 
 

Finding the Perfect Wholesaler

 

There are 330,000 unique wholesale providers in the world, readily available to serve small businesses in industries like food, apparel, electronics and more.

 

Amazingly, the 50 largest distributors only produce a quarter of the industry’s revenue.

 

There’s a whole wide world of wholesalers, which is why finding the best one for your business is crucial.

 

There’s a whole wide world of wholesalers, which is why finding the best one for your business is crucial.

 

So where do you begin your search?

 

You should start in trade directories like TSNN and Alibaba. They’re popular, which often means that they’re consistent and reputable.

 

Online associations can also help you, as they have become more and more common with globalization.

 

Embassies are meant to facilitate business between nations, which includes wholesalers. These resources are especially good because they can provide a ton of additional information as well.

 
 

Choosing the Perfect Wholesaler

 

Here are two factors that you should consider when looking for the best wholesaler.

 

Product Offerings

This seems obvious, but it’s surprisingly important. Many wholesalers invest in their operations instead of their online presence.

 

An unclear product catalog can be confusing for small businesses and isn’t worth the risk, especially when there are countless options.

 

Clearly identify if the wholesaler provides the specific product that you want, or if they can in the near future.

 

Some distributors will send you a sample product so you can judge the quality. For them, this is a small investment for what could be a large supply deal.

 

Wholesale Price

Price isn’t the most important thing, but it’s certainly up there.

 

Buying wholesale is meant to cut costs, as you’re buying in bulk and many of these distributors have discounted deals with manufacturers. If you’re not saving money, that’s a red flag.

 

Trade directories are fantastic for comparing prices on products for your small business. It’s convenient and clear, meaning you can do your research before making any decisions.

 

Popular wholesalers may be reputable, but it’s usually the unorthodox choices that offer the best deals. Like anything else, this is a risk assessment but either way, you’ll find good prices.

 

You’ll find that prices change based on shipping distance and wholesaler-manufacturer relationships more than anything.

 

Popular wholesalers may be reputable, but it’s usually the unorthodox choices that offer the best deals. Like anything else, this is a risk assessment but either way, you’ll find good prices.

 
 

Paying Wholesalers

 

Don’t worry, this part has become much easier than it used to be.

 

When banks were the only choice for business payments, people had to suffer through outdated technology that caused unnecessary delays and fees.

 

Veem has changed that for small businesses, with a multi-rail platform that optimizes how money travels from sender to receiver. That means no middle man, cutting costs even further.


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Join Veem today and say hello to simple payments.