A wholesale supplier sells products to retailers, who then resell them to the general public. Retailers buy items in bulk at a lower price and then mark them up when selling individual pieces to customers. Wholesale manufacturers, importers, and distributors can supply goods to retailers for resale.
The primary goal of retailers is to profit from the difference between the wholesale price and the retail price. The spread is the name for this price difference. The spread, and thus the retailer’s profit margin, can be influenced by the wholesale supplier. Purchasing goods directly from the manufacturer will typically result in a large spread. Each step in the supply chain away from the manufacturer usually results in higher wholesale prices and lower profits for the retailer.
Purchasing retail products from a manufacturer wholesale supplier usually necessitates ordering a large quantity of merchandise at once. Retailers who rely on manufacturers as wholesale suppliers require a large amount of storage space to keep their merchandise until it is sold. When a sale is made, some companies will hold inventory for a retailer and drop-ship items directly to the customer.
Because items are sold one at a time, this option usually results in higher prices. The retailer may also be charged a handling fee. Some manufacturers, on the other hand, will not sell directly to a retailer and will force the retailer to purchase from an importer or distributor.
When working with manufacturers directly, there are some additional challenges. If the manufacturer is located in a different country, the retailer must follow import laws and complete all necessary paperwork in order to bring goods into their country. Import law can be complicated, and it varies by country.
Importers who handle the entire importing process are preferred by some retailers. While the prices from importer wholesale suppliers may be higher, the minimum order quantity may be lower. In addition, the retailer will save time and effort by not having to deal with importing procedures and paperwork.
In order to bring goods into the country and find buyers, an importer wholesale supplier usually works directly with manufacturers. Individual retailers or distributors may purchase goods from importer wholesale suppliers. To provide a wide range of products to retailers, distributors frequently collaborate with a number of importers and manufacturers. Distributors frequently have the lowest minimum order quantity and the highest cost per piece.
The Internet can be used to locate wholesale suppliers. A quick search of a manufacturer’s website will reveal whether the company sells directly to retailers or lists importers and distributors. Retailers can also use website networking portals to find wholesale products, which list manufacturers, products, and contact information.