How to Buy Wholesale in 2024 (2025) - Shopify

Figuring out how to buy wholesale can be daunting.

SINOTOOLS contains other products and information you need, so please check it out.

Can anyone buy from wholesalers? Do you need a license to purchase wholesale? Are there different types of wholesalers? Where can you buy wholesale products?

If that’s not enough, there’s so much information online and so many websites offering to help you buy wholesale products—and, unfortunately, not all of them are legitimate. So, what do you need to know to avoid making costly mistakes?

In this post, you’ll learn everything you need to know to quickly and confidently buy in bulk for resale.

What does it mean to buy wholesale?

Buying wholesale is the process retailers use when they purchase products in bulk and resell them individually. By buying in bulk, retailers can acquire products for a lower cost per unit and then sell them separately for more money in order to make a profit.

Here’s how buying wholesale typically fits into the big picture: 

• Manufacturers will produce goods and then sell them in huge quantities to wholesalers.
• Wholesalers will sell the products in smaller bulk quantities to retailers.
• Retailers will sell the products individually to the end consumer.

For example, the apparel brand Feature buys products in bulk from brands like Nike, Converse, and Adidas, then resells the products individually to the end consumer.

Of course, it’s not always this straightforward. For instance, some retailers will buy wholesale products directly from manufacturers. On the other hand, some manufacturers and wholesalers will sell products directly to the end consumer.

There are also brands like Apple, which act as manufacturers, wholesalers, and retailers. This is because they produce their own products, sell them in bulk to other retailers, and sell them as retailers to consumers.

3 types of wholesalers

There are a few subtle differences between the different types of wholesalers. It’s important to understand these differences to ensure you only work with reliable wholesalers who’ll help you succeed.

There are three main types of wholesalers:

Manufacturers 

Manufacturers are the starting point in the supply chain. They turn raw materials into products you use every day. These companies can be small, making unique and handcrafted items, or really big and producing lots of different products for many brands. 

Retail wholesalers 

Retail wholesalers are the middlemen. They buy products in big quantities from manufacturers and sell them to stores. They get discounts for buying in bulk, which means they get the products at a lower price per item. 

Wholesalers will sometimes sell products with their own packaging and label. They also have a good understanding of market trends, so they always have the best products available for sale.

Merchant wholesalers 

Merchant wholesalers buy products directly from manufacturers, and then sell them either to stores or directly to consumers. They have different ways of selling, including cash-and-carry, dropshipping, and online sales, sometimes even showcasing products in warehouse showrooms. 

Shein is a popular merchant wholesaler. They can be found selling in bulk and to consumers on Alibaba, eBay, Amazon, Poshmark, and its retail website.

How to buy wholesale

1. Prepare to buy wholesale 

If you want to buy in bulk and sell individually, you need a license (and some other documents—more on this in a moment). Wholesale licenses are often referred to as a reseller’s license, a reseller’s permit, a reseller’s certificate, or a sales tax permit.

Each state has its own rules, so be sure to research the specifics for your region.

Let’s take a look at how to legally buy wholesale for resale. Here are seven things you need to get started. (It’s worth noting that these requirements are different depending on the state or country you’re in.). Check out the US Small Business Administration’s website to determine which licenses and permits you may need.

If your business also has an online presence and ships products to customers in different states, you must collect sales tax on shipping and handling in those states. And remember, sales taxes differ from state to state. To do this, you need a TIN, or taxpayer identification number, which is an official number issued by the Internal Revenue Service.

It’s a good idea to have insurance in the event that something goes wrong—especially if you’ve just started learning how to buy wholesale.

There are a few different types of insurance you may want to consider. For example, you may want to invest in limited liability insurance. You can also get commercial insurance to minimize other business risks. To learn more, check out Shopify’s guide, Commercial Insurance: What Is It, And Do You Need It For Your Ecommerce Store?

2. Identify the wholesale products you need

There are many wholesale products to sell. But if you want to succeed as a wholesaler, you have to know your customers, their preferences, and their needs.

Conduct market research to find out what’s hot, what’s not, and what’s missing. You can use tools like Google Trends, social media, and market reports. Take a look at what your competitors are selling and see if you can offer something better or cheaper than what they’re offering.

Decide what your niche is based on your understanding of the market. What kind of products will you specialize in? Having a niche can help you focus your marketing and buying.

3. Research potential wholesale suppliers

Choosing the right wholesale supplier for your business isn’t the most straightforward task. So, let’s talk about a few things to keep in mind when considering which wholesalers to purchase from.

When looking for vendors to buy wholesale from, it’s important to select a legitimate company that’s transparent about its practices. It’s also crucial to avoid engaging with companies that have shady or unethical business practices. 

Don’t be afraid to ask questions about the company and its processes. Your wholesaler is essentially your business partner, and they should be willing and able to answer your questions sufficiently. If they’re not, that’s a serious red flag.

Faire reduces this risk and hassle by listing only trustworthy, pre-vetted brands.

Look for wholesale vendors who consistently demonstrate good customer service. Check out review websites, ask for references, and, if possible, speak with existing customers and ask about their experience.

Any wholesale supplier you choose should have a deep understanding of their products and niche. They should also be able to pass this knowledge on to help you market the products. The truth of the matter is that, when you succeed, they succeed. As a result, good suppliers are invested in your business success.

Take Noble Otter Soap Co. This wholesale soap company is run by two knowledgeable and passionate soap makers—precisely the kind of allies a business needs when selling a specialist product.

Ideally, you should be able to buy in bulk online for your business, like you would with a personal purchase. Sadly, this is rarely the case with B2B transactions. In fact, many wholesale suppliers have cumbersome and challenging payment processes. This is another reason why it makes sense to use Faire— after signing up, you can simply check out online, like you usually do.

Be realistic about your budget, and don’t forget to factor in unforeseen expenses. For example, when you calculate your pricing, consider sales, discounts, and other promotions you may run. And consider that not every product will sell well. 

These factors will affect your profit margins—so make sure to consider them when you make a decision about how much inventory to keep. Don’t be afraid to shop around, as many wholesale vendors stock the same or similar products at different prices.

4. Contact the suppliers you’re interested in 

Once you’ve shortlisted several wholesale vendors you’re interested in working with, it’s time to reach out to learn more about them.

Take a look at the questions below and keep them on hand when you do your research. These questions can help you gather the information you need to make an informed decision.

• Where are your products made or manufactured?
• What are your wholesale delivery lead times? (As a retailer, quick turnaround is essential, because running out of stock means missed revenue.)
• What is your minimum order quantity (MOQ) for wholesale?
• How long has your company been operational?
• Do you sell products directly to consumers?
• Can I buy samples before I make a purchase?
• What is your return policy for any damaged items within an order?
• Do you have a digital wholesale ordering system, or will I need to place an order on the , by , etc.? (These systems help eliminate things like order errors and fulfillment delays.)
• What happens if my order arrives late?

Some vendors will have already answered many of these questions on their website’s FAQ page.

5. Purchase and receive your wholesale items 

Before making a purchase, communicate with your supplier to confirm product specifications, order quantities, expected delivery time, and any other terms or conditions. Create a detailed purchase order that outlines every aspect of your order, including quantities, descriptions, agreed prices, and delivery dates.

Terms can vary greatly, from prepayment to 30-day terms or longer. Try to negotiate terms that favor your cash flow. If shipping logistics are handled by you, work with a reputable freight forwarder. They can manage the complex logistics of shipping, customs clearance, and documentation.

When your order arrives, inspect the shipment immediately for accuracy and quality. Check for the correct quantity, and inspect for damages or defects. If there are any issues with the order, contact your supplier immediately. Refer to your purchase order and terms agreed upon to resolve discrepancies or negotiate returns/replacements.

6. Consider tariffs and import duties

When buying wholesale products from international suppliers, it's crucial to understand the tariffs and import duties that may apply. These additional costs can significantly impact your profit margins if not accounted for in your pricing strategy.

Tariffs vary widely depending on the product category and country of origin. For example, products imported from China may be subject to different tariff rates than those from India or Europe. Understanding these costs upfront helps you make more informed decisions about which suppliers to work with and how to price your products competitively.

Keep yourself updated on changing trade policies by following resources like Shopify's guide to navigating tariffs, which provides information on optimizing duties collection and strategies for diversifying your supplier network to mitigate tariff risks.

Where to buy wholesale products in

If you’re wondering where to buy wholesale products, this section’s for you! There are plenty of ways to find wholesale suppliers—let’s look at a few tried-and-tested options.

1. Faire

Faire is an online wholesale marketplace that connects independent retailers with small businesses and makers (brands) to browse and order products wholesale online. It’s essentially a B2B platform designed for local retailers to discover and stock thousands of unique and independent brands from over a variety of categories like home, lifestyle, beauty, and more.

2. Wholesale marketplaces

Here’s a list of alternative wholesale shopping sites where you can buy wholesale products for resale:

• Alibaba is the largest business-to-business (B2B) online marketplace globally. As a result, it lists countless wholesalers, manufacturers, and distributors to choose from—most located in China.
• IndiaMart is the largest B2B online wholesale market in India (and the second-largest globally, after Alibaba). It has a massive database of wholesale suppliers to choose from, many of which are based in India. 
• Global Sources is a wholesale market based in Hong Kong, and the majority of suppliers listed are based in Asia.
• eWorldTrade is a US-based wholesale market that lists wholesale suppliers from around the world.
• EC21 is a wholesale marketplace based in South Korea, listing more than 1.5 million suppliers.
• TradeIndia is another popular wholesale market based in (you guessed it) India, with more than 2,000 categories to browse.
• DHgate is another wholesale market based in China, featuring millions of sellers in China, Turkey, and Korea.
• Made-in-China mainly helps to connect global buyers with suppliers in China. 

Unlike Faire, most online B2B marketplaces don’t pre-vet wholesale suppliers. Not only that, but many of these websites offer no way to check out on the platform, so you have to contact suppliers and negotiate before you can buy wholesale products. This can be incredibly challenging to do successfully—even for experienced retailers.

Faire keeps things simple by allowing you to buy wholesale products from pre-vetted suppliers directly on the website.

Skip the tariff guesswork

With Shopify's Tariff Guide, enter your product details to instantly see the correct HS codes and U.S. tariff rates–no jargon, no guesswork, just the information you need when importing wholesale products.

2. Word-of-mouth recommendations

Word of mouth is one of the best ways to find wholesale suppliers, as they’ve already been pre-vetted by someone you trust. Ask your connections for their recommendations and listen for repeated names in your network.

3. Ecommerce forums

What if you’re new to buying wholesale and you don’t know anyone in the space personally? Don’t worry, there are plenty of established ecommerce forums where you can connect with other retail business owners. Plus, wholesalers also tend to hang out in forums hoping to pick up new business. To get started, check out Shopify’s online community.

4. Facebook groups

Similarly, there are many Facebook groups where you can connect with people who are bulk buying wholesale for resale. Again, you can get some great deals, but it’s also a little risky—so thoroughly research suppliers to ensure they’re legitimate before handing over your hard earned money.

5. Google Search

If you’re still struggling to find a wholesale supplier, you can always search on Google. However, it’s important that you do a deep dive, as the best results are not always on the first few pages of the search results. And again, thoroughly vet the suppliers you find.

Start selling wholesale with Shopify 

Learning how to buy wholesale for resale can be challenging. But with a little tenacity and patience, it’s possible to find a reliable supplier offering profitable products for your business.

For more information, please visit wholesale hand tools.

Remember, unless you plan to buy wholesale for personal use, you must obtain the proper licenses to buy in bulk for resale. And it’s definitely worth taking the time and effort to do your research and shop around. This will help you get the best quality products at the best prices. 

Shopify is built to streamline the B2B sales process with a robust set of tools for managing inventory, processing bulk orders, and maintaining customer relationships. You can create a password-protected wholesale page on your ecommerce site, or you can integrate with wholesale marketplace Faire to reach a wider audience and sell in bulk online. 

Establishing yourself as an online wholesaler can be tough. When you’re not sure where to begin, landing a wholesale order may seem downright impossible. What’s more, your traditional experience in sales might not translate to the unique world of buying and selling in bulk.

Fortunately, if you follow a series of strategic steps geared specifically towards wholesaling, you’ll be more likely to break into the industry with ease. By choosing the right product, connecting with manufacturers, and setting smart wholesale prices, you can make it over the hurdle of that first sale.

In this post, we’ll cover the basics of wholesaling and why you may want to start this kind of business. Then, we’ll provide you with six simple steps that can help you land your first wholesale customer. Let’s dive in! 

Why You Should Start Wholesaling

In the wholesale model, you serve as the middleman who purchases a large quantity of a product directly from the manufacturer, receiving a bulk discount. Then, you resell the product to one or more retailers at a slightly higher price to earn a profit. Finally, the retailers sell the product at a markup to their customers.

For wholesaling to work, a few things need to happen:

1. The wholesaler needs to buy in bulk to receive a good price.
2. The wholesaler needs to add value or convenience as a middleman (otherwise the retailer can just buy directly from the manufacturer).
3. The retailer needs to be able to sell the product at an additional markup.

The key to successful wholesaling is moving a large quantity of products. To profit, you first need to negotiate a good purchase price by buying in bulk. Then, you must sell all of that quantity at a higher price.

This may sound a bit complicated at first, but it can be quite lucrative. Once you find opportunities in a market, your success can build on itself. You may find new business partners or gain loyal wholesale customers who repeat large orders.

Win A Wholesale Order in 6 Easy Steps

Often, the hardest part of wholesaling is getting started, especially if you don’t have much experience or many pre-existing business connections. Therefore, planning and preparation are key to minimizing risk and making that all-important first sale.

With that in mind, here are six simple steps to help you get your initial wholesale order!

1. Decide what product(s) to sell

It may seem like there is an infinite number of viable products you can wholesale. To cut through the noise, it’s best to look for opportunities in your niche and narrow down the possibilities.

A good starting strategy is to list 100 ideal companies that you’d like to earn business from. This may be a bit challenging, but it’s a highly useful exercise. After all, it forces you to get creative and consider products you may not have thought of otherwise.

It’s also wise to assess the possibility of working with products you have pre-existing knowledge about. For example, if you like to shop for clothes and have a strong sense of fashion, wholesaling clothing could be a good option. Your expertise in brands, fabrics, and styles can make it easier for you to source quality products and sell them to retailers. 

No matter what you decide to sell, you’ll want to ensure it has market potential before you invest. You may know a lot about camping gear, but if there are many successful outdoor supply companies, you’ll have trouble getting a slice of the market. On the other hand, if none of those outdoor supply companies offer a certain in-demand product, you may have found a solid opportunity to capitalize on.

You’ll also need to know the logistics of your wholesaling operation. You may need to store or transport the product in large quantities or alter the original packaging for resale.

If you lack the ability or funds to store or transport products, dropshipping may be the way to go. Either way, you need to understand the product, the retailer, and the ideal consumer to orchestrate a lucrative wholesaling operation.

2. Create clear and fair terms

A wholesale purchase agreement can be a relatively simple document in terms of business law, but it’s still crucial to get it right. Local jurisdiction for your particular products will determine the finer details, but you’ll want to make sure your wholesale agreement includes the following:

• The product and quantity being exchanged
• The current and new owner
• Details about the product (such as condition, variety, and other standards)
• Terms in the event that these standards are not met
• Shipping times, costs, and arrangements
• Price and payment method
• Terms in the event that payment is not successful (i.e. late fees)
• Applicable fees and taxes and who is responsible for them
• Conditions and limitations of the agreement, including default policies

You may want to include additional details, but this framework covers most of the essentials. Keep in mind that you would be wise to pay close attention to your wholesale pricing terms in particular, as these should be clear from the start. For example, it’s best to be upfront about terms such as minimum order quantity.

3. Connect with retailers and manufacturers

Once you’ve established your wholesale agreement, start reaching out to manufacturers and retailers. Each will require a slightly different approach.

Manufacturers

Typically, making a deal with a manufacturer to buy their product is easier. After all, they usually want to sell as much as they can. Still, you may have to compete with other companies for supply and pricing. You’ll need to get the product at a low enough price that the consumer at the end of the road is still willing to buy it, even after both you and the retailer take a cut.

Retailers

Striking a deal with a retailer can be harder. Other companies may be competing to provide the same or similar products, and the retailer can theoretically buy straight from the manufacturer to keep your cut for themselves. That’s why it’s essential to provide some benefit as the middleman. This can be better pricing, streamlined logistics, or just convenience. 

For example, if a retailer is currently buying gummy bears in small quantities directly from the manufacturer, they may not be getting a bulk discount. If you can buy those same gummy bears in bulk for a 10 percent discount, you could then store them and distribute them in small quantities to the retailer for 5 percent less than they are currently paying. This will allow you to net a 5 percent profit for yourself.

The above example assumes that you have the money to invest upfront, the space to store the bulk quantity, and the ability to sell all of the product before it expires (if relevant). In this scenario, you would be benefiting the retailer by offering better prices. Other examples of benefits could be faster delivery from a local warehouse (logistics) or handling the delivery schedule from the manufacturer (convenience).

The bottom line? You need to give wholesale customers a reason to buy from you over your competition or the manufacturer. When you do, you’re more likely to successfully enjoy your first wholesale, attract more customers, and build lasting wholesale partnerships.

4. Establish your wholesale prices

While it’s not the only factor, your pricing strategy is perhaps the most important aspect when it comes to wholesaling. Setting the appropriate wholesale rate is key.

Once again, you’ll want to consider your overhead costs in addition to the price you buy and sell at. That way, you can ensure that you are actually coming out ahead. Competitive margins might help you get a sale, but if the costs of operation eat up that profit, you might be left with nothing to show for your hard work.

Dropshipping, which arranges shipments straight from the source to the buyer, is a great way to avoid a lot of overhead. Otherwise, you can expect to pay for a warehouse to store products, delivery services, and wages for you and your employees.

To solve your wholesale pricing conundrum and get a wholesale order, it also helps to use the following tool:

Wholesale Suite’s price calculator can help you determine ideal wholesale prices and sales quantities to meet your goals. Once you have the numbers figured out, you can reach out to manufacturers and retailers with your wholesale model to see if it’s advantageous to them.

5. Make it easy to purchase your wholesale products

Running an online wholesale store can be quite complex. If you’re not organized, managing your wholesale pricing, orders, and shipping can become a major headache. In the worst-case scenario, you may even scare off potential customers with a confusing website.

Therefore, you’ll want to make sure your WooCommerce store and systems are ready for your first sale. Ideally, you should have a great recruiting page where your wholesale customers can register. You should also make sure your product list is organized and straightforward.

Ultimately, you’ll want to make it as easy as possible for your customers to make a purchase. Using premium software such as our Wholesale Order Form plugin can help streamline your order process from the start. That way, getting wholesale orders is fast and frictionless.

When this tool is used in combination with Wholesale Prices Premium, you can easily set your wholesale pricing and process wholesale orders all in one place. Furthermore, you can utilize more than 100 features, which include shipping mapping, multiple user roles, tax displays, and more.

6. Market your wholesale products

You can greatly increase your chances of converting a new customer with a bit of marketing. As you’ll recall, it’s important to highlight your value as a middleman.

Through your website copy, you should highlight how you can save your customers time and money. The best place to do this is front and center.

For instance, you may want to remind users that you offer free shipping or convenient payment methods. You can even use your website header to advertise an incentive such as a first-order discount. You’ll also want to find ways to make your business memorable. For example, you can call potential customers who may need a little nudge to take the leap.

How To Manage Wholesale Orders: 4 Key Steps

The work does not end once you start to get wholesale orders. To succeed in wholesaling, it’s also crucial to implement systems and processes that ensure seamless order management. With an organized process, you can meet deadlines effectively, optimize order fulfillment, and enhance customer satisfaction. 

Fortunately, we’ve got you covered! Below, we’ve provided four key steps to help you get started. 

1. Automate wholesale customer registration

To attract wholesale customers and win sales, you’ll want to reduce potential friction early in the sales process.

Eliminate cumbersome paperwork by implementing an automated registration system for onboarding new wholesale customers. With a system in place, aspiring wholesale customers can quickly fill out the required information and apply as wholesale customers on your website. 

An automated onboarding system also makes it easier for you to manage and organize customer information. With all necessary details readily available, you can easily communicate with your customers and tailor your marketing efforts to their needs. 

Our WooCommerce Wholesale Lead Capture plugin allows you to automate this process conveniently. This tool lets you easily create user-friendly registration forms for aspiring wholesale customers. Additionally, it offers advanced features like built-in spam protection, customizable sequences, automatic application approvals, and more.

Make it effortless for your wholesale customers to place orders using digital tools designed to cater to their needs. You can utilize plugins like Wholesale Order Form to create intuitive and user-friendly order forms for a hassle-free ordering experience.

When combined with Wholesale Prices Premium, Wholesale Order Form can also allow you to set wholesale prices and create special pricing tiers based on order quantities and value. 

By simplifying the order placement journey for your customers, you create a better buying experience and enhance their satisfaction.

3. Implement an efficient order-tracking system 

Keeping track of bulk orders can be complex and time-consuming. Without an organized system, you risk misplacing orders, experiencing delays, and losing potential customers.

To avoid this, consider investing in order management software tailored for tracking and managing wholesale orders. These systems often provide helpful features such as real-time inventory tracking, order status updates, and automated notifications for you and your customers. 

A reliable order management system can also provide your business with the following advantages:

• Access to a centralized database of order details for easy information access
• Option to integrate with other systems to create automated workflows
• Scalability features to cater to growing order volumes
• Optimized tracking to reduce errors and delays

4. Provide stellar customer support 

Building lasting relationships with your wholesale customers relies on delivering exceptional customer support and fostering trust in your ordering process. As customers can become uncertain or impatient during the ordering journey, it’s important to keep them informed at every stage.

To achieve this, consider implementing the following strategies:

• Establish Clear Communication Channels – Display contact information (such as your business’ address or contact number) clearly on your website, order update emails, and other marketing materials.
• Provide Timely Order Updates – Use automated notifications or SMS alerts to keep customers informed about the status of their orders. 
• Create Dedicated Support Channels – Consider adding a live chat feature on your website, creating a dedicated address for support, and providing a line your customers can reach if they have queries or concerns. 

Conclusion

Breaking into online wholesaling can be challenging. It’s distinct from regular e-commerce sales, and if you’re not strategic in your efforts, you may have trouble finding your first wholesale customer.

However, if you follow these proven steps and use the right tools, getting wholesale orders should be a breeze:

1. Decide what you want to sell
2. Set your wholesale agreement terms
3. Connect with manufacturers and retailers
4. Set your wholesale pricing
5. Make it easy to buy your products
6. Market your wholesale goods

Additionally, you can enhance customer satisfaction and ensure a smooth order process by implementing the following steps in wholesale order management:

1. Automate wholesale customer onboarding
2. Use digital tools to streamline order placement
3. Leverage an order-tracking system
4. Provide exceptional customer support

Do you have any more questions about how to get more wholesale orders? Let us know in the comments below!

If you are looking for more details, kindly visit best professional socket set.