In the United States alone, wholesale trade is worth about a half-trillion dollars every year, and it has risen by more than 11 percent in the last five years. Those are difficult numbers to ignore, which is why more vendors, particularly dropshippers, are vying for a slice of the ecommerce pie. But you can’t sell something you don’t have. The most difficult aspect of product sourcing is locating a reliable source. And, with so many possibilities available all around the world, it might be difficult to choose the ideal wholesale clothing supplier for your company.
But this does not have to be the case. Get the detail in this guide on finding the proper wholesale supplier to assist you locate the perfect partner:
What is a wholesale supplier and why do you require one?
- How to Locate Reputable Wholesale Suppliers
- Unusual methods for locating wholesale suppliers
- How to Tell if They’re Right for You
What exactly is a wholesale supplier?
A wholesale supplier is a business that purchases goods directly from manufacturers and resells them to retailers for a profit. With the advent of mass production and marketing techniques in the nineteenth century, the wholesale model grew in favour.
Without wholesalers, manufacturers would have to market and promote their products directly to retailers, which would be inconvenient. Wholesale suppliers are essentially supply chain middlemen. They buy in such big quantities from manufacturers that they receive significant discounts, which they subsequently pass on to retailers. They typically have a product licence, so their products are not available to average customers—at least not at the same price points that they give to their merchant partners.
The wholesale products, be it wholesale jewelry or whole clothing, are subsequently repackaged by retailers for individual sale at a profit. Although prices are always adjustable, dropshippers and other retailers often pay wholesalers 60% to 70% of what they charge consumers.
What issues does a wholesale supplier address?
The purpose of wholesale firms is to choose and curate the greatest products for consumers while handling all marketing and customer service.
Those items, however, must come from somewhere. You’d have to create your own products and supply chain otherwise.
This is when wholesale providers come into play. Working with wholesalers has numerous advantages:
You can acquire as much goods as you need without having to worry about paying for pricey storage.
If something sells out unexpectedly, you already have a relationship with a source and can swiftly restock.
You acquire discounted things that you can sell at a profit.
You effectively avoid the full product development process, saving both money and time.
Dropshipping companies and wholesalers
Dropshipping companies frequently adopt the wholesale technique.
Dropshipping is a fulfilment method in which a store does not hold stock of the things it sells. Instead, the store buys things from a third-party vendor and has them shipped straight to the buyer. As a result, the seller never has direct contact with the products.
Consider it a combination of wholesale purchasing and third-party fulfilment (as opposed to ordinary retailers who buy wholesale or create and produce their own items and manage fulfilment on their own).