The first and most important point of starting an Amazon FBA or FBM business is choosing a wholesale distributor for each business. This matter is so important because if you don’t have a suitable wholesale supplier, you can never reach the desired profit and customer satisfaction that you have in your mind. If you are also looking to choose a wholesale supplier for your business, follow us in continuing this article.
What is Wholesale Distribution?
When a company or a person gives products directly from manufacturers or producers and sells in large quantities at a lowest price, the action is called wholesale distribution. This person or company is known as a wholesale distributor, and they act as a bridge between the manufacturers and the retailers. Retailers and sellers can source their products from a wholesale distributor at a low price and resell them in their stores or other marketplaces. Generally, you would need significant capital when you purchase the products from wholesalers in large quantities. But you will have the advantage of lower price per item compared to when you buy your inventory from retail stores like Target or Walmart. This is the way how you can make more profit.
Wholesale distribution isn’t risk-free and has pros and cons.
Advantages of wholesale distribution
- Less advertising and marketing
- More discount
- Not require special skill
- Less competition
- Link between retailers and manufacturers
Disadvantages of wholesale distribution
- Needs more space
- Less profit margin
- Requires huge capital
- Possibility of loss
- No direct interaction with customers
If you want to get more details about this topic, refer to the article “What is Wholesale Distribution?”
Tips to Find the Right Wholesale Distributor?
If you don’t have a suitable supplier for your Amazon FBA or FBM business, you can never have a profitable business, and your customers will leave you after a while. For example, many wholesale distributors force buyers to purchase a large quantity from a product type.
If a seller could not sell many of that product, he would lose a lot and possibly go bankrupt. Just this example shows how crucial choose a wholesale supplier is. In the following, we mention some points about the proper selection of a wholesale distributor.
Wholesale Distributor with After-Sale and Support Service
Never forget the support and after-sales service. Nobody likes spending money on products that, in case of being defective, nobody is responsive. So, try to provide your products from a source that has after-sales service and is responsive to that.
Fast and On-Time Wholesale Distributor
When the inventory of your products finishes, you are losing profit at every moment. In choosing a wholesale distributor, take care of on-time and quick shipping to avoid loss in your business.
Wholesaler with No Minimum Order Quantity
The main problem for most wholesale distributors is selling in high numbers, so that you should buy a minimum quantity, and then they will sell you products. This way could be risky, as you may fail in selling the products in that quantity. Besides, it requires higher capital, and it is not a good choice for those who want to start with minimum capital.
In WholeBeans, we don’t have any limitations for our customers, and everybody can purchase a single product or too many products at wholesale price from us.
Wholesale Supplier Based On Location
Try to choose a wholesale distributor that will be close to the place where you live because shipping products from long distances has a high cost. On the other hand, the greater the geographical distance, the higher the possibility of defectiveness during transportation.
Wholesale Distributor with Good Reputation And Work History
Watch out to the scammer that their numbers have been increasing day by day. You may pay for a product and never receive it. It is also possible that instead of the original products, they deliver you fake or high copy products.
In this article, you will get familiarized with wholesale distribution. Wholesale distributors buy the products directly from suppliers or manufacturers in large quantities and sell them at wholesale prices to their customers, which are often business professionals, commercial establishments, or retail stores. In addition, we offer you some tips to find suitable wholesale distribution for your Amazon wholesale business.
Are there any questions in your mind that we didn’t answer? Comment it for us to give you the answer.