Online Directory Resources | Legitimate Wholesale Sourcing
I’ve borrowed this article from my friend, Max Kardashian, of Dropshipper’s Dark Night of Soul notoriety. Since his fracas with Google resulting in loss of his considerable virtual “realestate,” and, I might add, gain of serious cash–assuming that he’s been able to pry much of it from the steely fingers of PayPal, he has retired to the Virgin Gorda to plan his next incursion into the land of search engine marketing.
We must first set out some ground rules. Although there are some very good wholesale lists, no single directory will answer all the needs of all people all the time. There really is no magic bullet. There are, however, real wholesalers, and real wholesale dropship sources. There are makers who make things and businesses who distribute and sell things. Distributors less expensively from the manufacturer and sell it a little more to the retailer, who in turn sell yet more expensively to the general public. Still, the misinformation surrounding dropship supply has created a climate of uncertaintly and confusion for many newcomers.
So, you desire a list or directory of wholesale product sources. Be aware that true wholesale items come from businesses legally licensed by the manufacturer to distribute their goods. As such, a real wholesaler must require proof that you have a sales tax permit. I’m sorry if you’ve heard this all before, but this point is so often misunderstood. A sales tax permit is a permit granted by your state of residence allowing you to purchase goods without paying sales tax because you are expected to charge your customers sales tax. You, in turn, will pay the sales tax to the state at tax time. Render unto Caeser and that sort of thing.
Those who prefer a climate of mystery and other purveyors of misinformation misuse the word “wholesale” to mean low cost goods. In fact, “wholesale,” really means the price offered by a legitimate wholesaler to their clients, which may start around 32% below MSRP (manufacturers suggested retail price) depending on the wholesaler’s contract with the manufacturer. IHave you every thought about the following issues:
What industry or area of manufacture do want to sell products in?
What would be typical products that you would expect to sell?
If you can answer those questions, then you may be close to the prize. You may very well be interested in online wholesale and dropship product sources, but bear with me. Your best leads may not be found online. Check these questions out:
Have you looked in the phonebook?
Have you researched trade shows?
Have you researched regional and national associations for your product area?
Have you consulted trade magazines?
Have you tried your local library references of manufacturers and distributors?
Have you asked your local retailers what they do with their liquidation closeout stock?
This offline research can yield wholesale and factory direct sources with whom to establish a personal relationship that may work well for your business. This is the true gold. Your personal network of contacts is your wholesale dropship supplier philosopher’s stone!
To help point the way, I have what I think is valuable resource. And, it is an online resource. We are, after all, also about online resources, but first and foremost, we are about viability. Here is the lead I mentioned:
The National Association of Wholesaler Distributors. You can find them at www.naw.org.
This association will provide you with many direct leads to true wholesale and manufacturer sources. This may require a little work, but this is the real due diligence you have to do to know what you are doing.
I know you are interested in online retail wholesale suppliers. I’m not sure that the Internet is the best place to do this kind of research, but there are a few good online wholesale directory and forum resources that can be helpful. Personally, I think the forum is the true asset of such a directory if it is active.
Rather than me recommend a particular directory at this point, I’d like to give some pointers to help you make the best decision. There is a lot of controversy surrounding some of the wholesale directory product sourcing sites, much of which may be caused by misunderstanding what they are. A good list should have a forum that is actively participated in. It also provides, in brief, a vast list of wholesale, dropship, and factory outlet sources. It is a place where you can get opinion and feedback to your product sourcing questions. And, it is inexpensive. Keeping in mind that you must always draw you own conclusions, I personally feel that a good online resource should offer the following benefits:
Drop Ship Suppliers: Suppliers who send the product directly to your buyer from their warehouse, so that you as the retailer do not store inventory.
Wholesale Suppliers: Access to many true wholesalers. You will stock inventory yourself but benefit from low bulk prices if you choose to purchase in bulk quantities.
Liquidation and Closeout Specialists: Brand Name suppliers for bulk purchasing from some of the major retail outlets. These suppliers have products available for well below wholesale prices. Normally this means you must purchase substantial bulk lots, but this is where you get the low, rock bottom prices. This is one of the secrets of top eBay sellers.
Factory Manufacturers: Able to offer members the lowest prices available from the factory. However, it is important to keep in mind that because selling to retailers is not their primary business, you may need to buy in bulk quantities of 1000 or more. And again, this is a secret of top eBay sellers.
Suppliers From Asia: Get access to the closest source to the factories direct from countries such as China, Hong Kong and Taiwan. We warn you that buying from China can be a terrifying experience.
Brand Name Products: Access to the best branded, high demand products.
Daily Updates: The directory data base should be updated on a regular basis.
All suppliers should be rated by not only the directory itself but also by the membership.
Fully Searchable Database
Private Members Forum
Educational material to help you understand product sourcing and how to use eBay.
Fulltime Customer Support
There are several well reputed online directory resources. It is important to understand that these are only resources. It provides the means of contact with the supplier and a means of networking with suppliers and other buyers. No wholesale directory in itself can make you rich or somehow enable you to magic yourself rich overnight. These are tools, and like all good tools requires understanding of the owner’s manual and also a plan for its use.
The fact that the directories are online wholesale resources may endow them with greater importance or authority than they should have. I think they can be a valuable resource, but really, your best resources will come from your personal contacts. Again, my opinion here is that you have a better chance of developing a more secure network of sources if you do it as much in person as possible via trade shows and exhibitions. You can do it online, but if you have the means, pursue direct contact as well. But enough said.
If you enjoyed this post, please consider leaving a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment