How to Buy Wholesale

Co-authored by Zachary Green

Last Updated: January 23, 2023 References Approved

Wholesale businesses are volume-based. Their need to sell large quantities of items at a rapid pace means lower prices and more savings for you. There are opportunities to buy almost anything at wholesale prices so getting started is easy. Once your contact list of sellers begins to grow, you can even find success reselling wholesale goods.

Method 1

Method 1 of 3:

Finding Wholesale Suppliers

1
Do an Internet search to locate specific products. Search first by typing the name of the product you are looking for. Include a model number if you are looking for something specific. Follow it with words like “wholesaler” or “distributor.” Your Internet search may show you a list of businesses selling merchandise at reasonable prices.^{[1]
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- Type your area code into the search as well in order to cut down on shipping expenses.
- Research companies before you buy from them. Search for the company name online to check customer reviews. Use a business database such as the Better Business Bureau.
- Call companies not only to discuss purchases, but to gauge their legitimacy. Most legitimate companies will have business protocols such as a departmental phone system or receptionist.
2
Speak to brand manufacturers to order from them directly. Many manufacturers are tough to buy from since they tend to fulfill high volume orders only. However, you get the cheapest prices when you buy from them. Call up their sales department or send them an email. Ask them, “Can I order your product from you directly? Do you have a minimum order amount?”
- To contact a brand manufacturer, search for their information online. Look for emails and phone numbers on the manufacturer’s website or in business listings.
- If the manufacturer can’t sell to you directly, ask them, “Can I have a list of your distributors?” Many times you can connect with regional distributors or wholesalers to purchase products at a reduced price.
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3
Visit trade shows if you want to order from manufacturers in person. Manufacturers and even wholesalers sometimes set up booths at trade shows. Purchasing products here can be a little more expensive and less efficient than over the Internet, but you also get a chance to network with various company representatives.^{[2]
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- Trade shows provide an opportunity to view products and ask questions about wholesaling in person.
- Search online to find trade show listings in your area.
4
Network with other wholesalers if you want to find deals. Make connections with manufacturers, distributors, and other buyers. The people you know may direct you to new acquaintances and opportunities for a deal. Search online for wholesale communities so you have a place to discuss business and have access to deal-finding tools.
- For instance, find a list of wholesalers at a site such as https://www.wholesalecentral.com/.
- Meet up with other wholesalers when you can. Befriend them, talk to them, share sources, and discuss your purchases. Ask to be introduced to other wholesalers and sellers so you can expand your network.
- Make connections at trade shows and in professional organizations. Other wholesalers may be using these sources too.
5
Join professional groups offering wholesale prices in trade magazines. These groups occasionally run ads in trade magazines. Stumbling upon ads can be hit or miss, but by reading a magazine or website relevant to what you want to buy, you may come across good deals. These organizations often provide purchase discounts to members.^{[3]
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- For example, read about the food or restaurant industry if you are interested in buying food or kitchen supplies wholesale.
- Paying to access deals may seem rough at first, but it quickly becomes worth it if you find what you need.
6
Buy from business to business sites if you want to shop internationally. There are a few of these wholesale sites available that can help you make purchases, the biggest of them being Alibaba or AliExpress. You can connect to manufacturers across the world so you can buy goods directly from places like China. You can then place larger orders if you plan on reselling items.^{[4]
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- Business to business websites facilitate purchases. By using them, you can get price quotes and place orders without calling up a manufacturer. This means less worries about issues like language barriers or shipping.

Method 2

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Making Successful Purchases

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Choose products to buy that fit your needs. If you need a specific product for yourself at wholesale prices, your choice is easy. If you want to resell a product, you also need to think about what you are able to store and sell. When starting out, stick to a few products you are knowledgeable about. Chances are you will have an easier time getting what you need and selling the product for a fair value if you don’t want to keep it.
- For example, you might buy beauty products at wholesale prices and sell them to others. If you know more about computers than beauty products, you might start with laptops instead.
2
Compare prices between different sellers. Don’t stop looking once you find a product to buy. You may be able to find the same product elsewhere for less money. This is because the price increases for every broker that handles the merchandise. Getting the product from its source will save you money.^{[5]
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- The manufacturer sells at the cheapest price. Manufacturers have regional distributors that sell products in a certain area. Wholesale businesses often buy from distributors and sell to retailers.
- You will also hear about jobbers or brokers. These are wholesalers who sell products to businesses in a small area. You can usually get better prices by speaking to their distributors.
- Also consider branching out to similar products. If one type of laptop is too expensive to purchase, you may be able to find a different brand, for example.
3
Ask for discounts and other perks from wholesale suppliers. When making a purchase, ask the seller, “Do you have any discount offers?” Sometimes you can find great products at reduced prices. Other times, you get to save money because suppliers compete for your business and want you as a repeat customer.^{[6]
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- Sign up for email lists and newsletters. Discount, closeout, and liquidation offers are often listed there.
- You may have better luck asking for discounts after placing a few orders with the same supplier. However, you can sometimes find good deals for new customers.
4
Select an inexpensive way to have the items shipped to you. You’re going to need to find a way to get the product from the supplier to you. Generally, sticking with a trusted name in the freight business is recommended. The cheapest way to receive a shipment is by land through trucks or trains. Sea freight is a cheap but slow way to bring large shipments overseas, while air transport is the quickest but often the most expensive method.
- To find trusted freight companies, research the company’s reputation online. Use sites such as the Better Business Bureau in America. Also, ask other wholesale shoppers what shipment companies they use.
- The shipping cost depends on how far away you are from the supplier. You will end up paying less if you can find suppliers in your area.
- You can often choose how fast you need the product delivered. Faster shipping costs more money. The seller will most likely finalize this arrangement.
- Unless you place a large order, your product will end up in a truck with other orders. The costs of shipping may be split by everyone who placed an order.
5
View the return policy before placing an order. As most wholesale merchandise is sold “as is,” clarify the seller’s return policy. Ask them about it if you aren’t sure. Make sure you also understand the cost of the order and the processing and shipping times. You need to know all of this so you can return items you don’t want and recoup the cost.
- If you think an offer isn’t good enough, negotiate. Many times the supplier will improve the return policy or lower the overall price, especially if you can get a better deal elsewhere.
- For orders over $50,000, you may wish to have a lawyer review the shipping contract before you sign it. This way, you ensure you aren’t out a lot of money in case something goes wrong.

Method 3

Method 3 of 3:

Starting a Wholesale Buying Business

1
Get a business license if you plan on reselling wholesale items. In most areas, you need a business license with a valid tax ID before you can buy wholesale products. To apply for a license, speak to your government’s licensing board. You will need to fill out an application explaining your business, such as what you are buying and your plans to resell the items to other customers.^{[7]
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- You can usually apply through your government’s website. Organizations such as the Small Business Administration in the U.S. can help you with this.^{[8]
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- For tax purposes, get a federal employee ID number. You can do this by registering your business with your government’s tax department. For example, visit the IRS’ website, if you’re in the U.S., and fill out a form describing what your business does.
- If you purchase wholesale products for yourself, you don’t need a license. You may also be fine without a license if you don’t buy a lot of products or sell them often.
2
Apply for a resale certificate with your government to avoid taxes. Visit your government’s licensing board or their website to begin your application. You will need to supply your business license, tax ID, and a description of your business. With a resale certificate, you can avoid paying for sales taxes. All you have to do is show the certificate to the seller.^{[9]
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- Without a certificate, you pay the sales tax when you purchase wholesale items. If you have a license, your customer has to pay the sales tax when they buy the item(s) from you.
- Like with business licenses, you do not need a resale certificate unless you plan on reselling wholesale items. If you do plan on running a business, having a certificate saves you money.
3
Find a place to store what you buy. Purchasing wholesale goods can take up a lot of space. If you plan on reselling merchandise and make frequent purchases, you may soon end up finding yourself overwhelmed. Clear out some space in your home, such as in your basement or attic, so that you can keep the items.^{[10]
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- Some of your items may not sell right away. Count on having enough space to store items for a several months at a time.
- Many professional resellers rent out storage warehouses. Look for some empty storage buildings in your area.
4
Start off with sample units until you want to buy more of a product. Instead of trying to hawk 1,000 units of something, try selling 20 units of the same thing first. Even though many wholesale suppliers operate by selling large quantities, some will let you buy sample or test units at discounted prices. You can then keep or sell the units at your own pace without taking a big risk.^{[11]
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- Ask your source for a sample order or simply order a small quantity of the item.
- Sticking to small quantities is useful if you don’t have a lot of extra cash or storage space, but remember that wholesaling is a volume-based business.
- If an item sells like hotcakes, you can easily purchase more of it. If it sells poorly, you won’t be stuck with a lot of costly junk.
5
Order items in higher quantities to save money. In wholesale, volume is very important. Companies offer you lower prices when you buy units in bulk. Many commercial wholesale businesses are “volume-centric,” making money by selling a lot of products quickly at reduced prices. In fact, some manufacturers and distributors won’t sell to you unless you order a certain amount of their product.^{[12]
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- Balance your supply and physical needs with inventory constraints. A deal on 2,000 computer laptops won’t do you much good if you have no place to store them.
- Large bulk wholesalers maintain purchase minimums, such as requiring you to place orders over $5,000 USD. These types of purchases work well for retail stores.
- Light bulk wholesalers operate in smaller quantities, such as by selling a single case of an item or by accepting orders less than $500. Working with these sorts of sellers is useful when you’re just starting out.
6
Request an itemized list of what's on the pallet or truckload. Often referred to as a "manifest", these listings describe the goods, quantity you receive, approximate retail value (ARV), and item number assigned by the retailer or manufacturer. This information is useful for recordkeeping and researching products. Type the product number and other information into an online search engine to see if you can find comparable wholesale prices.^{[13]
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- Tell the seller you want an itemized listing when you place your order. Also, ask the shipping service for their records.
- You can also find this information by typing in a product’s UPC barcode number online.
7
Inspect shipments to make sure you received what you paid for. Take time to check your merchandise as soon as you receive it. Use the manifest, if you requested it, as guidance. Make sure you received the full order and that the merchandise isn’t damaged. Sometimes miscommunications happen, so stay vigilant to avoid nasty surprises.
- The return policy is important when you don’t get what you want. Read it carefully before agreeing to a purchase.
- You can research your sources online to find reviews from other buyers. If you feel uncertain about a source, ask other wholesalers for their opinions.
- If you are unable to return an order or get your money back, you will know to avoid buying from this source in the future.

Expert Q&A

Question

What do I need to start buying wholesale?

Zachary Green
Entrepreneurship Coach
Zachary Green is an Entrepreneurship Coach, Author, and U.S. Marine Corp Veteran. With over 10 years of experience as an entrepreneur, he specializes in helping people transform their businesses, relationships, and lives. Zachary’s book, Warrior Entrepreneur, focuses on how warrior traits can help entrepreneurs, leaders, and others battle through adversity and accomplish their missions. Zachary was featured in Entrepreneur Magazine, on the front page of Yahoo.com, MSN.com, and in USA Today, along with numerous other local and national media outlets, and was named Entrepreneur of the Year by Governor John Kasich. Zachary was also selected by the Obama White House as one of 10 entrepreneurs to represent the United States at the Global Entrepreneur Summit. He was also featured in the US Playing Cards Frontline Leaders playing card series as one of 52 veteran entrepreneurs. Zachary earned a BA in Marketing and Sports Management from Bowling Green State University in Ohio. He won the Ohio Chamber of Commerce Entrepreneur of the Year in 2013, the SBA Ohio Small Business Exporter of the Year in 2016, a Spartan Distinguished Alumni Award in 2017, and a President’s E Award in 2019.

Zachary Green

Entrepreneurship Coach

Expert Answer

It can be helpful to establish a business entity before you start to buy wholesale products. Visit Google to get started buying an LLC. You don't need all the extra add-ons until you start getting investors. At this point in time, you don't really need much of an operating agreement or bylaws, either.
Question

How do I buy gift and tea baskets in bulk for my shop?

Community Answer

If you have your resale license, you should be able to contact a wholesaler directly and ask how to set up an account with them. They will usually ask that you provide some information and/or documentation demonstrating that you're authorized to resell goods for retail and can provide you price lists and requirements (like minimum orders, etc.) for purchasing at wholesale pricing. Sometimes you can also apply to operate on credit, but this is not always available or necessary. Another option besides contacting wholesalers directly is to find out their distributors. Some companies do not make direct sales and instead make all their sales through third party distributors.
Question

How do I buy supplies for making crafts wholesale?

Community Answer

Ebay. China. I got all my supplies for jewelry making from China via ebay. They were the same items as in the 'US Distributor' catalogs, only for 1/5th of the price.

Warnings

Beware of online auctions that originate from another country. The merchandise may be inferior and come with high shipping costs and fees.

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Beware of set fees, or “buyer’s premiums,” mandated by some sellers and auction sites.

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