Always dreamed of opening a brick-and-mortar store, Amazon FBA storefront, or ecommerce site, but unsure where to start? One of the first steps is sourcing high-quality products that consumers want. This means teaming up with reliable suppliers of affordable items to mark up and sell for a profit.
Here, find out how to build your ideal retail outlet with help from the world’s best manufacturers, distributors, and dropshippers.
What is a reseller?
A reseller is an individual or company that buys products from manufacturers, distributors, or dropshippers to sell for profit. Resellers range from small mom-and-pop shops to massive overstock outlets and every retail operation in between. Here are a few common reseller models.
Wholesalers
Wholesalers buy items in bulk to resell. They buy directly from manufacturers and distributors, and their customers are usually other retailers. For example, a pet shop site might buy a pallet of pet supplies from a wholesaler to stock its store. Wholesalers offer a variety of products, from textiles like wholesale clothing to more niche items, like trending accessories, health and wellness goods, office supplies, automotive parts—you name it.
Distributor
Distributors are resellers that act as supply-chain middlemen. They purchase large quantities of products directly from manufacturers to sell to third-party retailers. Distributors offer a large variety of products at competitive prices, and they make a profit on every sale. Retailers that buy from them may pay a bit more than if they’d gone straight to the manufacturer, but they gain the benefit of finding everything they need under one roof.
Dropshippers
Similar to distributors, dropshippers are middlemen between manufacturers or big wholesalers and smaller retailers. The difference is that dropshippers only send retailers products when end consumers buy. For example, if a person orders a shirt from a fashion retailer, the dropshipper would send the shirt straight to the consumer’s door.
Retailers
Retailers are relatively small businesses that resell items to the general public. Think: physical boutiques or online stores. Retailers generally purchase new products from wholesalers, distributors, dropshippers, or even manufacturers.
How to find a wholesale supplier
Find wholesale suppliers by sourcing contacts on reliable platforms, like WholesaleCentral. Here’s what to look for in the providers you consider.
Define your product
Decide what you’ll sell so that your store has a coherent look and feel. Will you sell apparel? Home goods? Car parts? And, are you interested in branded products or do you need private label items you can rebrand as your own? Once you know what type of items you plan to offer, it’s much easier to search for wholesalers that offer the product categories that fit your business needs.
Do your research
Don’t go with the first reseller you find. Instead, compare and contrast pricing, minimum order quantities (MOQ), and delivery costs and speed. Be sure you understand the price-per-item you’ll receive for the quantities you plan to order, as wholesale pricing is often tiered.
Check reviews
Read reviews about other resellers’ experiences working with the wholesaler. If they’ve had restocking delays, poor communication with customer service, or quality issues—buyer, beware. It can also be smart to reach out directly to the wholesaler’s customer service team with questions to see how they respond, getting a feel for their professionalism first-hand.
Top wholesale suppliers for resellers
If you’re thinking that—even with the best advice—it must be impossible to pinpoint top wholesalers among countless options, you’re right. Make your job easier by sourcing contacts or products from the following reliable platforms.
WholesaleCentral
WholesaleCentral is a B2B platform connecting retailers with wholesale distributors and dropshippers in every product category under the sun. Use WholesaleCentral’s vetted contacts to connect with the most reliable suppliers in the game.
Competitive advantage: WholesaleCentral offers retailers countless supplier options under one roof, giving you access to all the best sellers in every category, so that you can stock your store as you please.
Kole Imports
Kole Imports is a general merchandise and closeout goods importer, offering wholesale products to third parties. The company purchases items en masse from foreign manufacturers and warehouses them in the U.S.
Competitive advantage: Kole Imports offers liquidation-style products, meaning resellers can score great deals on cheap items.
Costco Wholesale
Costco Wholesale is a direct-to-consumer members’ club selling brand-name and private-label products in bulk to the general public.
Competitive advantage: You don’t need to be a reseller to take advantage of Costco’s low prices on products you use in daily life, from foodstuffs to home decor to beauty items.
DollarDays
DollarDays is a wholesaler that sells wholesale lots for retailers, schools, and charities. The site has a wide range of daily-use goods, like clothing and hygiene kits.
Competitive advantage: DollarDays offers low-cost items in smaller minimum order quantities, making it a highly accessible option. This wholesaler also stands out for their good deeds, providing items to disaster relief sites and others in need.
Faire
Faire is a virtual wholesale marketplace, where retailers can purchase items directly from brands and manufacturers offering a wide range of products.
Competitive advantage: Faire leverages data to help new retailers find the right products for their stores. They also offer checkout perks, like 60-day payment and risk-free first orders (retailers can return them at no cost).
Alibaba
Alibaba is a Chinese e-commerce marketplace connecting retailers and consumers with manufacturers and suppliers.
Competitive advantage: Both retailers and consumers can access goods sold by Alibaba’s suppliers.
What makes a good wholesale supplier?
Choose a wholesaler supplier that can help your business scale. Here’s what to look for in a wholesaler to minimize risk and protect your profit margins.
- Transparency: Pricing, shipping times, and order requirements should be clear and consistent.
- Product quality: Ask for sample products before buying to assess the quality, ensuring it’s up to your business’s standards and won’t cause reputation damage.
- Reliable communication: Chat with customer service and determine how well they respond. You don’t want to work with a supplier that has poor response times and confusing answers, as this will make resolving issues—if they arise—difficult.
- Payment methods: Ensure that you can pay conveniently and on timelines that align with your business’s cash flow.
- Fulfillment: Check out whether the wholesaler can meet your demand on time. You can’t afford to wait for late shipments and risk fulfilling customer orders late.
Why wholesale matters for resellers
Working with a wholesale supplier gives you exclusive access to low prices on high-quality items, helping you source products your customers actually want and drive profit margins. Use WholesaleCentral to connect with vetted suppliers, and find out how to meet vendors in person using our trade show calendar.
FAQs
Do I need a business license to buy wholesale?
No, you don’t need a business license to buy wholesale, but if you’re running a retail operation, you’ll need the legal status that licensing (like an LLC) provides.
How do resellers make money with wholesale?
Resellers mark up and sell wholesale products they buy in bulk purchases, making a profit on sales to consumers.
Is it better to source locally or internationally?
It depends. International products can be less expensive, but order processing is usually slower thanks to longer shipping times. Plus, shipping can cost a lot. Local products may have a slightly higher price point, but delivery is quick and cheap.
How do I avoid being scammed by a supplier?
Work only with vetted suppliers on WholesaleCentral and do your due diligence, as well, reading reviews and asking questions of the customer support team, assessing their level of service.
What are the best products to resell from wholesale?
Beauty products, electronics, pet supplies, clothing, and accessories are among the top categories for resale.