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What is the Real Deal With Wholesale Distributors?
There are certain key indicators to recognize when sourcing goods and a prospective wholesale distributor. It may not always be easy to know if you are working with a real and a fake wholesale distributor but if you can figure it out you can certainly save your self lost time, money, and grief. Whether you are looking for a wholesale distributor for a home based business or researching new items for your inventory, you need to be on constant alert for the definitive characteristics to distinguish a fake wholesale distributor from the real deal to steer clear of the traps.
It is the middleman gets the profits and benefits. There are a myriad of wholesale distributors online when you do a Google search and it is pretty good odds that it is a replica manufacturer or direct factory source. Large companies are contracted and take delivery of shipments on a regular basis by wholesale distributors for the simple reason that most of all the larger manufacturers or suppliers only maintain a limited budget for marketing their online merchandise. The money that would otherwise be spent on marketing is better served elsewhere in their business because more often than not the company in question will manage all the advertising, marketing and promotion for their product. A wholesale distributors function is to only to store the products. Merchandise is obtained from the manufacturer and shipped to the clients that buy for resell to the final consumer. Chances are it is an agent wholesaling the goods in bulk especially if you come across a huge online merchant with products for resells. The price is increased a little bit to make a small profit, a dropship program is offered as a benefit and you make all the tough efforts of marketing and selling the goods for less cash.
A different kind of indicator to discern the real deal from a fake wholesale distributor is a wonderful marketing strategy called a membership site. Usually, you will be charged a monthly fee to join the membership and receive featured benefits afforded only to members. Logically this is not sensible to participate in just get your products. These wholesale distributors are making a profit from the merchandise that is sold to you as well as a fee to buy it. Why would your clients pay you a monthly charge just to be able to buy the goods in your store? Well, because it works. So do not get enticed by this strategy.
A real deal wholesale distributor will ask you for particular information to make sure that you are the real deal. They will need your federal tax id number and a resellers permit to validate your credibility. Providing this information will also save you money, as they will exempt you from the sales tax charge. A certificate is often used so that you do not have to provide the information every time you put in an order. If a prospective wholesale distributor requires this information, you can be confident that more than likely they are legitimate wholesaler.
A W-2 form and a social security number is the bare minimum requirement asked by a fake wholesale distributor. This sounds pretty easy yet while this isn't a bad thing what the real deal is that they say for the products you sell you will get commission on sales every month for your efforts. The easy way may not be the best way, as you become a sales contractor not a reseller especially considering that there are numerous others who are advertising the very same products at reduced rates. With these types of dealers you will surely be at a disadvantage in selling these products.
As a successfully run home-based online merchant, you should do away with any type in between trader and resource high quality goods in bulk volume. A slight downfall of a supplier that provides drop shipping for smaller volume quantity, even from a real factory direct outlet, is that they are more likely to charge a slightly higher rate for their goods and shipping. The best approach is to get a hold of low prices by buying products from a real deal bulk wholesale distributor to be successful and find the best prices for the highest quality products and from a quality reliable source.
Article Source: http://EzineArticles.com/1492995
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