Wholesale suppliers sell products to retailers who resell them to the public. Retailers aim to make a profit from the difference between the wholesale and retail price, known as the spread. Buying directly from manufacturers guarantees a wider spread, but requires storage space. Importers can handle the import process, while distributors offer a wide variety of products with low minimum quantity requirements. Retailers can find wholesale suppliers through manufacturers’ websites or web portals.
A wholesale supplier sells products to companies, called retailers, who resell those products to the public. Retailers buy items in bulk at reduced costs and then mark up prices by selling individual pieces to consumers. Retailers can purchase products for resale from manufacturers, importers, and wholesale distributors.
The main objective of retailers is to make money from the difference between the price paid to the wholesale supplier and the retail price. This price difference is known as the spread. The choice of wholesale supplier can affect the spread and, in turn, the retailer’s profit margin. Generally, buying products directly from the manufacturer guarantees a wide spread. Each step of the manufacturer in the supply chain usually leads to higher wholesale prices and lower profits for the retailer.
Purchasing retail products from a wholesale supplier often requires purchasing a large amount of merchandise at the same time. Retailers who rely on manufacturers as wholesale suppliers need ample space to store these products until they are sold. Some companies will hold a retailer’s inventory and ship the items directly to the consumer when a sale is made.
This alternative often leads to higher prices as items are sold one at a time. A handling fee may also be charged to the retailer. On the other hand, some manufacturers will not sell directly to a retailer and will force the retailer to buy from an importer or distributor.
There are some additional challenges when working directly with manufacturers. If the manufacturer is located in another country, the retailer must follow import laws and complete the necessary documentation to bring goods into the retailer’s country. Import law can be complex and differ from country to country.
Some retailers choose to buy from importers who handle the entire import process. While wholesale import supplier prices may be higher, the minimum purchase quantity per order may be lower. In addition, the retailer does not have to deal with import procedures and paperwork, which can save a lot of time and effort.
An importer wholesale supplier usually works directly with manufacturers to bring goods into the country and find buyers. Wholesale importer suppliers may sell merchandise to individual resellers or to distributors. Distributors often work with multiple importers and manufacturers to offer retailers a wide variety of products. Distributors often offer the lowest minimum quantity per order requirement and the highest cost per piece.
Wholesale suppliers can be found using the Internet. A quick search on a manufacturer’s website can reveal whether the manufacturer will sell directly to retailers or provide a list of importers and distributors. Retailers can also search for wholesale products using web portals of websites that list manufacturers, products and contact information.
Protect your devices with Threat Protection by NordVPN
