A False Wholesale Distributor vs. a Genuine Wholesale Distributor

Knowing how to detect a bogus wholesale distributor may save you a lot of time, money, and hassle. When obtaining items from a possible wholesale distributor, there are several factors to consider. To prevent catastrophe, whether you are seeking for a wholesale distributor for your home company or just wanting to add new goods to your catalog, you should be on the lookout for the following symptoms of a phony wholesale distributor.

I used to be in the skincare Korean Cosmetics niche and I used to use this B2B vendor - and I'm sharing that with you because I went through countless of other retailers to land with one that I trusted. Another resource I used was the US Chamber of Commerce (that helped a lot with vetting trustyworthy partners) and this forum.

If you discovered your wholesale distributor's website using a major search engine, chances are they are not a genuine factory direct supplier. The reason for this is that most wholesale distributors do not have a budget to promote their items on the internet. They have contracts with major corporations to which they supply items on a regular basis. They don't need to spend money on promoting their items because the manufacturer will handle all of the promotion. A wholesale distributor's only responsibility is to warehouse the items received from the factory and transport them to the firms who are purchasing them for resale.

Another indicator of a bogus wholesale distributor is the requirement of a membership. Some will attempt to charge you a monthly fee in order to conduct business with you. This also does not make sense. When you buy items from a wholesale distributor, they make money off the products you buy. Would you charge your consumers a monthly subscription to buy your items at your store?

To conduct business with you, a legitimate wholesale distributor will require your federal tax ID number and resellers permission. They require this in order to avoid having to charge you sales tax. When a potential wholesale distributor requests this information, you may be confident that they are a genuine manufacturer direct dealer.

A phony wholesale distributor may tell you that all you have to do is fill out a W-2 form and provide your social security number. They inform you that for the items you sell, they will send you a check for your commissions every month. While this isn't necessarily a negative thing, it does appear to be very simple. However, the simple way is the difficult way, and you must evaluate how many other individuals are selling the same items on the internet at the same low rates. You will struggle to sell items from these sorts of vendors.

To run a successful ecommerce home company, you must cut out the middlemen and buy in bulk. Because you are not purchasing in bulk, a drop shipping provider, even if they are a true factory direct source, will charge you extra for their products and shipping services. To be successful, you need the greatest price for quality items, and the only way to get them is to source them from a true bulk wholesale distributor, one firm to another. The easy route is the one most people take, and you'll soon discover that it leads nowhere.