The ability to spot a fake wholesale distributor can save you a lot of time, money, and trouble. There are many things to look out for when sourcing products from a potential wholesale distributor. If you are trying to find a wholesale distributor for your home business or just looking to add new items to your catalog then you need to be on the watch for the certain signs of a fake wholesale distributor to avoid disaster.
If you found your wholesale distributor’s website in a major search engine chances are that they are not a real factory direct source. The reason why is that most of all wholesale distributors do not have a budget to market their products over the web. They have contracts with large companies they ship products too regularly. They don’t need to spend money on marketing their products because the company that made the products will handle all the advertising. Wholesale distributors’ only job is to warehouse the products they receive from the factory and ship them out to the companies who are buying them for resell. It does not make any sense for them to spend money on marketing the products they have. This is why if you find a huge website full of products for resell, chances are it is a middleman buying the products in bulk, marking up the price a little bit, offering a drop shipping service to you, and getting you to do all the hard work for less money.
Another sign of a fake wholesale distributor is if they require a membership. Some will try to charge you a monthly fee to do business with you. This does not make any sense either. If you are buying products from a wholesale distributor they are making money from the products you are purchasing. Would you make your customers pay a monthly fee just to be able to buy your products in your store?
A real wholesale distributor needs your federal tax id number and resellers permit doing business with you. They need this, so they do not have to charge you sales tax. When a potential wholesale distributor asks for this information you can count on them being a legit factory direct dealer.
A fake wholesale distributor could tell you that all you need to do is fill out a W-2 form and give them your social security number. They tell you that for the products you sell they will send you a check each and every month for your commissions. While this isn’t a bad thing, this sounds pretty easy. The easy way is the hard way though, and you have to consider how many other people are selling the same products on the web at the same low prices. You will have a very hard time selling products from these types of dealers.
To run a successful e-commerce home business you need to eliminate any middleman and source products in bulk. A dropshipping supplier, even if they are a real factory direct source, will charge you more for their products and shipping services since you are not buying in quantity. To be successful you need the best price for quality products and the only way to obtain low prices is to source products from a real bulk wholesale distributor, one business to another. The easy road is the one most often traveled, and you will learn that it leads nowhere.