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    1. NoahSmith is offline

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      #1

      Types of Wholesalers - Which type of Supplier is right for me?

      Hello all,

      I am a newbie in the wholesale industry looking for apt guidance as very confused about the facts. Can anybody help me to get an insight into the world of wholesale industry and to select the right wholesaler for me?
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    2. MissWholesale's Avatar
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      #2
      Hello NoahSmith,

      Welcome to Wholesale Forum

      There are various types of wholesale roles, which wholesalers cover in different ways. To understand which type of wholesale supplier suits your business type and goals, please refer the information below. It should help you make the right decision before selecting a wholesaler to work with.

      Wholesalers are basically differentiated by their trade designations, or the distribution method they employ, which are mainly divided into the following categories:
      • General Wholesalers:
      Wholesalers falling in this category usually buy large quantity of products from one or more suppliers. They resell products in smaller quantities to distributors and retailers. They carry a wide variety of nonperishable items; for instance, hardware, plumbing supplies, electrical supplies, furniture, drugs, cosmetics, and automobile equipment. These wholesalers mainly serve early retailers – the general stores.
      • Merchant Wholesalers:
      The merchant wholesale suppliers own and produce a product and resell it to the resellers, retailers, distributors and other wholesalers. Merchant wholesalers often specialise in certain types of products or customers. As compared to other wholesalers, they serve relatively small geographic areas.
      • Drop Ship Wholesalers:
      These wholesalers may or may not own and stock the products, they handle the order fulfillment between two parties (usually between the retailer and the end user, but also between manufacturers and distributors / resellers). They get orders from other wholesalers, retailers, or other business users, and fulfill those orders from stock or pass them on to the producers. Then producers ship the order directly to the customers.
      • Cash-and-Carry wholesalers:
      These wholesalers operate like service wholesalers. Some retailers, such as small auto repair shops, are too small to be served profitably by a service wholesaler. To respond to this demand, service wholesalers set up a cash-and-carry department to supply smaller retailers. Cash-and-Carry wholesalers can operate at lower costs, because the retailers take over many wholesaling functions, in exchange for access to wholesale pricing for smaller quantities.
      • Mail-order Wholesalers:
      These wholesalers sell out of catalogs, which are distributed widely to smaller industry customers and retailers. These wholesalers mainly deal in the hardware, jewelry, sporting goods, and general merchandise industries.
      • Discount Wholesalers:
      This type of wholesaler generally supplies significantly discounted stock, mostly because products are returned or refurbished goods.
      • Specific Product Wholesalers:
      These are wholesalers who supply only 1 type of product. They may supply several brands, but only within one product category.
      • On-line Wholesalers:
      This type of wholesaler sells its products on-line and offers discounted prices due to lower operational costs. Many middlemen operate as online only wholesalers, therefore beware of this category.
      • Specialty Wholesalers:
      These wholesalers stock a narrow range of products, but tend to offer more information and service compared to other service wholesalers. For example, a consumer product specialty wholesaler might carry only health or oriental foods instead of a full line of groceries. Specialty wholesalers often know a great deal about the target markets in their channel.
      • Truck Wholesalers:
      These wholesalers deliver the products that are stocked in their own trucks. They usually handle perishable products, returns and shelf pulls (which regular wholesalers prefer not to carry). Some truck wholesalers operate 24X7 and can deliver orders within hours.
      • Service Wholesalers:
      These are wholesalers who offer a complete range of services including buying, selling, transporting, storage, sorting, financing, providing market feedback and risk-taking.
      • Producers’ cooperatives:
      These wholesalers operate almost as full-service wholesalers, with the profits going to the cooperative’s members.
      • Rack Jobbers:
      These wholesalers specialise in non-food products that are sold through grocery stores and supermarkets. They often display them on their own wire racks. Rack jobbers can be referred to as service wholesalers – except they usually pay cash for what is to be sold or delivered.
      • Broker and Agents:
      They differ from merchant wholesalers in two ways: Like merchant wholesalers, they generally specialise by product line or customer type. A broker brings together buyers and sellers and assist in the negotiation.

      Hope the above information will help you select the right wholesaler for your business.

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    4. linetteroudebush is offline

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      #3
      You need to find hot products in your country and then find online suppliers of them.

    5. experience is offline

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      #4

      Quote:

      Originally Posted by NoahSmith View Post
      Hello all,

      I am a newbie in the wholesale industry looking for apt guidance as very confused about the facts. Can anybody help me to get an insight into the world of wholesale industry and to select the right wholesaler for me?
      Hi Noah,

      Do you want to get wholesale prices, or do you want to buy from a wholesaler? There can be a big difference, because the word wholesale means different things to different people.

      I have always regarded wholesale prices as the price manufacturers charge, but most people see wholesale prices as the prices wholesalers charge.

      In my view it is far better to go direct to the manufacturer, even for small quantities if you want to buy at the lowest price. You will find that difficult in the UK, because local manufacturers will rarely deal with small buyers.

      Overseas manufacturers on the other hand will welcome you with open arms if you make the appropriate approach.
      To learn safe overseas sourcing and how to buy small (or large) quantities at best prices see→ http://provenchinasourcing.comLearn to find genuine manufacturers and negotiate small orders at prices way below what wholesalers charge. Written after my health enforced retirement and provides insider information from veteran with experience exporting 1978-1987 importing since 1987 Learn to import the easy way

    6. DeluxeImportTrading is offline

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      #5
      What kind of business are you running? You should find a wholesale supplier that you can trust. There are many suppliers out there so you should be able to find one that you are comfortable with. Also look to see which ones offer free shipping or no minimum order size. You should find a wholesale supplier that is willing to cater to you....their customer. I hope this was somewhat informative for you! If you have any questions please feel free to let us know.

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