Your supplier plays one of the most significant roles for your business to succeed, so it is essential to be careful when you are searching for the right wholesale provider. If you manage to build a great relationship with your supplier, you will secure better payment conditions in no time, which can end up with much-needed flexibility for your business.
On the other hand, if you rush and get unreliable suppliers, you may end up with empty shelves and push your customers to your competitor’s store. In order to prevent that from happening, you should get the right wholesale provider by following these steps below.
Once your business is ready, you will have to determine which type of suppliers you should start with. We will list several different types of product providers that can help you decide which one is the best for your business:
• Foreign Companies and Importers:
A lot of companies that are dealing with import will help you find the best deals abroad and will act as a local distributor for the offshore firms. But if you are prepared to handle the import details yourself, then you will probably want to bypass the import houses and work directly with foreign manufacturers.
• Distributors:
Distributors are the type of suppliers that buy the products in bulk and then resell them in smaller quantities for the same or even higher price to the local Companies.
• Drop Shippers:
The Drop Shippers are working pretty much the same way as distributors. They are also buying in bulks and reselling in smaller quantities or even individually, but what sets them apart from distributors is that they will ship the products directly to your customer.
• Manufacturers
Manufacturers tend to work directly with you. Usually, they request high minimum orders or to make the bulk orders. If you are prepared to work directly with the manufacturer, then this is the best option, as it will help you save a lot of money over the long term. However, if the big bulk orders concern you, then you should start by ordering from sales associates until you are ready to purchase in large quantities.
Once you decide with whom you want to work with, make sure that you fully agree on the terms. Never hesitate to negotiate better conditions. The right product suppliers will always try to achieve the proper relationships, so if your supplier doesn’t have time to answer all of your questions or concerns, you may continue searching for the best business partner. When negotiating with your supplier, you should always ask these questions:
• Who is paying for the shipping?
• What payment methods do they offer?
• What shipment methods do they have?
• How much credit are they willing to extend?
• How fast can they ship the products?
• Doing business with suppliers that you never meet in person has its risks.
Even though most of the suppliers are legitimate businesses, there will always be those who want to exploit the unsuspecting customers. So, to protect yourself and your business, you should pay attention to some of the most important warning signs:
• No physical location on their website
All suppliers tend to leave their address on the website so that potential clients can locate them easier.
• No phone numbers
If a supplier doesn’t have his phone number as a type of contact information, you should consider this as a big red flag and move on onto the safest supplier.
• Not listed on the BBB’s website (Better Business Bureau)
If they are located anywhere in North America and they are not being listed on the BBB’s website, then you should consider this as a small warning.
P.S.: It doesn’t have to mean that all suppliers are scammers if they do not appear on the website above; it is just something that you should take into consideration and more detailed investigation.
Establishing a good relationship with your supplier is a crucial ingredient if you want to secure a good business. The better the history you have with your supplier, the more loyal you will be in their eyes. After a while, you will be able to secure more agreeable terms, negotiable and flexible payment schedules. In the future, you might even have the input in the product development or also get the preferential treatment.
Searching for the right supplier can be hard and stressful for the new businesses, so we hope that our guide will help in making the process as easy as possible.
A right supplier can serve your business for many years, and if you build a trustworthy relationship, he will help you on your road to success.
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