Running a wholesale business seems very promising, especially for those who want to own and operate a business of their own. The prospect of making huge profits is the major attraction for them. Establishing a wholesale business is easier said than done. There are so many pitfalls and it becomes nearly impossible to find the urge to carry on without losing hope. This and many other are the reasons that most of the wholesale businesses don't get to live through their first year. Wholesale industry is a maze where every step is interlinked and it becomes nearly impossible to move on without fulfilling the ritual.
One such fundamental point is to find reliable wholesale suppliers for the survival and growth of your wholesale business. Suppliers can be manufacturers, distributors or simple agents or middlemen selling wholesale products. Here, questions arise that which wholesale supplier should you pick and why? How to judge the reliability and credibility of wholesale suppliers? It is very important to know the answers to these questions so that you can locate reliable and trustworthy wholesale suppliers.
Check the suppliers' network!
Before choosing any suppliers, it is important to closely check their network just to see whether or not they're reliable. If you are looking for online wholesale suppliers, make sure they have given the details of their office address and contact numbers on their websites. It is wise to not get lured with any exciting offers or striking discounts. Always check the reliability of the suppliers to make sure that they are trusted in the market.
Check their credibility!
Wholesale distributors buy products directly form manufacturers at the lowest possible price through bargaining and are in it for a long-term relationship. Once the agreement is signed, the supplier advertises the products online. If products are branded, supplier cannot advertise these products at extremely low prices or offer low shipping rates along with low-priced wholesale branded products. It is almost impossible to ship these branded products overseas without import license. Also, no one can sell the goods on prices lower than the market price. You must be careful if you see any such offer online. If somebody is offering you branded stuff at impossibly low price, it is possibly a scam.
Don't forget to evaluate supplier's financial condition!
You must ask for the annual financial report of wholesale suppliers to evaluate the financial health of their business before signing any contract with them. Pay a visit at their permanent office address to inquire about their debts and accounts receivable, if the situation is worst in collecting accounts receivable or burdened with debts, then it is advisable not to have transactions with them. Such wholesale supplier can leave the supplying anytime or can increase the charges to handle debts and overcome the financial situation.
Be clear about product policies!
If you have finalised the choice and are going to have a contract with the suppliers, read the company policy carefully before signing the agreement. Make sure if there are specific policies for replacing damaged products and shipment delays.
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