Let’s have a conversation about wholesale, because honestly, most people screw this up before they even get started. They think they can just email a supplier, grab some cheap products, and boom, instant profits. That dog won’t hunt here. This rodeo’s a different breed. Wholesale is a serious game, and if you don’t know what you’re doing, you’re either gonna overpay, get ignored, or end up with a garage full of junk you can’t sell. So, let’s go through 20 wholesale tips that’ll keep you from embarrassing yourself.
First, get legal or get cheated. If you don’t have a real, legal business, wholesalers won’t even look at you. No sales tax ID, no wholesale account. It’s that simple. And don’t think you can fake it, because real wholesalers don’t play that game.
Second, understand that wholesalers don’t always want online sellers. A lot of them work with big retailers like Walmart, and they don’t think a tiny online store is worth their time. Your job is to prove you know what you’re doing and won’t waste theirs.
Third, hide your suppliers from your competition. If you’re out here listing exact product model numbers, you’re just handing your supplier info to every copycat in town. Change the numbers, make them unique, and don’t make it easy for lazy people to steal your business.
Fourth, wholesale prices are not public information. You’re not gonna Google “wholesale price for sneakers” and get a real number. If that info was public, retail pricing would collapse. You need an actual wholesale account to get those prices.
Fifth, prices drop when you buy more. It’s basic math. Wholesalers give better deals to people who place bigger orders. If you’re just starting out, expect to pay more until you can scale up.
Sixth, some wholesalers charge refundable deposits. That’s normal. What’s not normal is a wholesaler asking for a nonrefundable fee just to open an account. That’s called a scam. Walk away.
Seventh, be patient when applying for wholesale accounts. These companies are dealing with major retailers. You’re not their top priority. Send your application, follow up, and don’t act desperate.
Eighth, wholesale profit margins vary. Some products have tiny margins, others have huge ones. If you’re making less than 20% profit, you’re barely scraping by. If you hit 35% or more, now you’re talking real business.
Ninth, don’t panic if your wholesaler has their own retail store. It doesn’t mean they’re gonna undercut you. They make their money off bulk orders, not retail sales.
Tenth, understand how dropshipping actually works. If you think dropshipping means getting cheap junk from China, you’re doing it wrong. Real dropshipping happens through legitimate wholesalers who ship directly to your customers.
Eleventh, know what MAP means. That’s Minimum Advertised Price. Some brands don’t let you sell below a certain price, and if you break that rule, they can cut you off.
Twelfth, know what MSRP means. Manufacturer’s Suggested Retail Price. It’s a suggestion, not a rule. You can adjust your pricing as long as you’re not undercutting yourself into bankruptcy.
Thirteenth, MOQ is Minimum Order Quantity. If a wholesaler says their MOQ is 100 units, don’t bother asking if you can buy just 10. That’s not how wholesale works.
Fourteenth, QOH means Quantity on Hand. That’s how much stock the wholesaler actually has. If you’re dropshipping, you better keep an eye on this so you don’t sell something that’s out of stock.
Fifteenth, FOB matters. Free on Board means who pays for shipping and when. FOB Origin means you’re paying as soon as it leaves the warehouse. FOB Destination means they cover shipping until it arrives at your location. Big difference.
Sixteenth, Net 30 is about payment terms. If a wholesaler offers you Net 30, that means you get the products now and pay in 30 days. But they’re not giving that deal to some random new business. You gotta build trust first.
Seventeenth, RMA is for returns. Return Merchandise Authorization. If you wanna send something back, don’t just ship it and hope for the best. You need an RMA number, or they’ll probably reject the return.
Eighteenth, SKU means Stock Keeping Unit. Every product variation, size, color, whatever, has its own SKU. If you don’t know your SKUs, managing inventory will be a nightmare.
Nineteenth, watch for wholesale discounts and specials. Wholesalers sometimes discount slow-moving inventory. That’s great if you can sell it, but don’t get stuck with a pile of stuff no one wants.
Twentieth, trade references might be required. If a wholesaler asks for trade references and you don’t have any, just put N/A. Don’t try to make something up. They’ve seen every trick in the book.
The point? Wholesale is not a free-for-all. It’s a game of patience, strategy, and knowing how the business works. Get legal, be smart, and don’t make rookie mistakes. If you do this right, wholesale can be a goldmine. If you do it wrong, it’s just another expensive lesson in what not to do.
Here Are Five Things You Can Do to Avoid Screwing Up Wholesale
First, get your paperwork in order before you even think about applying for wholesale accounts.
If you don’t have a business license and a sales tax ID, you’re wasting everyone’s time, including your own. Wholesalers don’t sell to random people off the street. Get the proper documentation so you look like a serious business owner, not some guy trying to sneak in the back door.
Second, call wholesalers instead of sending emails that will never get read.
Wholesalers are busy, and they’re not sitting around refreshing their inbox, hoping for a message from you. Pick up the phone, introduce yourself, and ask about their requirements. It’s faster, it shows you’re serious, and you’re way more likely to get a response.
Third, stop acting like a bargain hunter and start acting like a business owner.
If the first thing you ask is, “What’s your lowest price?” you’re getting ignored. Wholesalers want long-term customers, not people looking for a one-time deal. Ask about minimum order quantities, shipping options, or how often they restock. Show them you know what you’re doing.
Fourth, order samples before you go all in.
Just because a wholesaler looks legit doesn’t mean their products are good. The last thing you want is to drop a ton of money on inventory, only to find out it’s junk. Get samples first, check the quality, and make sure it’s something your customers will actually want.
Fifth, keep track of stock levels so you don’t sell products that aren’t available.
If you’re dropshipping or working with a wholesaler that moves a lot of inventory, check their stock levels regularly. Nothing kills customer trust faster than selling something that’s out of stock and having to cancel their order. Stay on top of it or be prepared for angry emails.
There you go. Five real things you can do right now to stop making rookie mistakes in wholesale. Get serious, get smart, and stop thinking this is just about finding cheap stuff. It’s a business, so treat it like one.
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