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5 Most Common Wholesale Supplier Questions Answered

Most people who are new to Ebiz view Wholesale Suppliers as something mysterious and somewhat fearsome. Don’t worry; they’re not going to bite. Wholesale Suppliers are just people doing a job. Sometimes it’s not the job you want them to do, but it helps to understand the answers to the 5 most common questions about them.

1. Will Wholesale Suppliers work with Home-based Online Business Owners?

Most wholesale suppliers are large businesses working to find large accounts with big box stores. Wholesalers don’t make a very large profit margin. So, they need to consistently sell a lot of product in order to stay in business and make money.

Because of this, many of them would rather not work with small home based businesses. That’s not what most home business owners want to hear, but it’s a fact that you should be aware of. When you approach a Wholesale Supplier, you need to convince them that doing business with you is going to be worthwhile to them. Remember that when they set up an account for you, they are going to devote resources (mostly administrative time) to managing your account and they want to make sure they’re not wasting that time.

2. What do I need before I approach a Wholesale Supplier? Bulk spices

You absolutely must have a legal business. Whether it’s a Sole Proprietorship (also known as a DBA), an LLC (Limited Liability Company) or a Corporation, you have to own a legal business before a real Wholesale Supplier will even talk to you. Once you own that legal business, you must get a Sales Tax ID within your State.

This is because a Wholesaler is not going to charge you Sales Tax when they sell to you at wholesale. As we all know, Uncle Sam has to have his due, so somebody has to collect that sales tax. As the product retailer, that somebody is you.

Wholesalers are required to keep the legal Tax IDs of their customers on file at all times, to prove that they’re only selling to businesses that are licensed to collect sales tax. So before you contact a Wholesaler, make sure you form that legal business and get a Sales Tax ID.

Keep in mind that a company calling itself a Wholesaler that does not ask you for a Tax ID is not a real wholesaler. There are thousands of scam operators calling themselves Wholesalers in the search engines. They get in between you and the real wholesaler, and mark up the prices, cutting down your profit margin. Stay away from these people at all costs; they’ll prevent you from building a profitable business.

3. How do I convince a Wholesale Supplier that my business is worth their time?

Make sure you check out the Wholesaler’s web site before contacting them. They’ll have the answers to most of your questions on that site. When you do contact them, that preparation will let them know that you did your homework. The last thing a Wholesale Sales Rep wants is a small business customer that sounds like they’re going to be high-maintenance.

When you call a Wholesale Supplier, make sure you use your company name. That lets them know you actually have a legal business, as opposed to the calls they get all the time from ‘window-shoppers’ who aren’t really in business at all. Tell them you’re a retailer interested in selling their products. Get as far into the conversation as you can before mentioning that you’re selling online. Never mislead the Supplier, but take the time to let them ask you some questions before volunteering that fact.

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