Finding a wholesaler is a great avenue for small business owners to explore. Dealing with wholesalers can garner you a great price on products and allow you to conduct a larger volume of business, however finding a legitimate wholesaler can be a difficult and time-consuming task.
What you don’t need to do and you should never have to do is buy a wholesaler directory at cost. Wholesalers are not like the riddle of the Sphinx, you shouldn’t have to jump through hoops, roll on your head and spit nickles out of your mouth to find them. Wholesalers, just like business owners, wants to do business so they don’t hide themselves. Look for a free directory of wholesalers such as Gowholesale.com. The directory has a listing of wholesalers who offer a wide range of products. Most wholesaler lists that are marketed on the internet for a fee are filled with sock puppet businesses, outdated links and phone numbers and businesses that may or may not actually exist. Don’t waste your money.
Once you have the name of some wholesalers you are probably best off calling the location and talking to someone who works there. A phone number should be really easy to find on the website and there should be someone available to answer your questions. Checking the internet for information about the company is also a good way to weed out the scams from the legitimate business. If someone has been “taken for a ride” by a bad wholesaler or a scam they are probably voicing that all over the internet so a quick Google search will reveal any major problems with the company.
Legitimate wholesalers will require a Seller’s ID number or a Federal Tax ID number before they will work with you. The ID numbers are used to identify your business by the local and federal governments and will be used when you need to file taxes on your sales. Both of these can be obtained by applying online for them via your state’s government website. In some states a Federal ID number is required before you can obtain a Seller’s ID (MI, GA, NV, MD, IL, NY). Most other states only require the use of one number or the other, never both. If the business does not ask for a Tax ID number you should really reconsider doing business with them. They might be perfectly legitimate but odds are you are not going to get the “great” prices you think you are getting.
Once you’ve found your wholesaler you can place your first order. There is almost always a minimum order quantity or price. You can call and ask for a “sample” package if you are unsure of the business but not all businesses will offer such things, it really is a courtesy for most places.. You should aim to build a relationship with your wholesaler and as time progresses you will find that your transactions will go smoothly. You just have to find the right wholesaler to deal with.
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