Your first contact with a wholesaler

This article provides a comprehensive guide on the role of a wholesaler with highlighting their importance in our use case.

Wholesalers play an important role in the distribution network of many companies. They act as intermediaries between producers and retailers or other end users. Like any business relationship, working with a wholesaler has both advantages and disadvantages.

What is the difference between retail and wholesale?

A wholesaler is someone who buys products in bulk from manufacturers or distributors and then sells them to retailers or customers at a higher price. Wholesalers are usually large companies and play an important role in the supply chain as they provide a link between manufacturers and retailers. By buying products in bulk, wholesalers can receive discounts from manufacturers or distributors, which they can then pass on to their customers.

A retailer is a person or company that usually buys goods or services from wholesalers or distributors and then sells these goods or services to customers. Retailers are also an important link in the supply chain because they bring goods and services closer to the end consumer.

Why should I consider a wholesaler - Advantages vs disadvantages:

Advantages

1. Access to a wide range of products

   Wholesalers usually offer a variety of products under one roof, which simplifies procurement. Through ProfitPath it is possible to scan the entire product range with an Excel, CSV or TXT to directly recognize which deals might suit you. Use our Private Search feature and upload your received files directly from the wholesaler.

2. Cost efficiency

   By buying in bulk, retailers can benefit from lower prices that wholesalers receive due to their large order quantities from manufacturers. ​

3. Large Quantities With wholesalers there are no Quantity restrictions like there are with many Online Retailers now a days.

4. Market knowledge

   Wholesalers often have in-depth knowledge of the markets and products they distribute and can offer valuable insight and advice. ​

5. Building a Business relationship If you start buying more frequently at a wholesaler they will recognize it and you can slowly build a relationship, to get better prices, exklusive deals and grow your network.

Disadvantages

1. Dependence

   Heavy dependence on a wholesaler can be risky, especially if there are supply shortages or quality issues.

   • Quality problems/replica warning

   • You have to look for really reputable wholesalers. Especially in the perfume industry there are often fakes and replicas, which is dangerous for you, amazon account and logically your customers. So check your wholesaler carefully before you buy anything. He may also have a big and good name in the scene.

2. Potential delays in delivery

   Depending on the efficiency of the wholesaler, deliveries may be delayed, which can lead to stock-outs at retail. We do not recommend simply selling goods if they are not yet with you and checked. ​

3. Larger upfront investment

   Many brands require customers to meet minimum order quantities (MOQ), and these quantities can be substantial. Consequently, it's essential to be prepared to invest a significant amount of money. ​

4. Higher risks due to large product batches Losing money on a few individual products can be inconvenient, but it's not the end of the world. However, experiencing significant losses in wholesale transactions can have a serious impact on your business.

How do I make initial contact with a wholesaler and how do I find one?

Step by step with our Wholesale Guide

1. Conduct online research with

   • Online search engines: Use search engines to find wholesalers in your desired sector. You should think about which sector you want to gain a foothold in - is it perhaps cosmetics or toys? Or perhaps electronics?

   (or through recommendations from business partners: Ask business partners or industry colleagues for recommendations).

2. Preparation for the first contact

   • Find out about the wholesaler:

     Before making contact, find out about the company, its product offering, terms and conditions and reputation in the industry.

   • Make a list of your needs:

     Define what you want from a wholesaler, including product types, quantities, price points and delivery terms.

3. Make initial contact

   • Check the website: First check the website carefully if there is the possibility to register online for a B2B wholesaler access. If this is not the case, the following points can be decisive:

     • Direct call or email: Contact the wholesaler by phone or email. Be clear and precise in your request. If you want to be look more professional get a catchall, with your company name in it. Get your first catchall here!
     • Video Call or personal meeting: If possible, arrange a face-to-face meeting to build a stronger business relationship. ​

   • First contact example Text:

     ---

     Subject: Wholesale Account Application for Diverse Product Range
     
     Dear [Wholesale Department],
     
     I trust this message finds you well. My name is [Your Name], and I am writing to express my interest in establishing a wholesale account with your renowned company, known for its extensive and diverse range of high-quality products.
     
     As the owner of [Your Business Name], we are enthusiastic about the prospect of collaborating with [Company Name]. Your comprehensive selection of goods perfectly complements our business model, and we are eager to introduce your products to our discerning customer base.
     
     Enclosed, please find all the necessary documentation, including our business registration details, and any additional information required for the wholesale account application process. If there are specific forms or procedures that need attention, please let me know, and I will promptly address them.
     
     I am available for a meeting or a phone call at your convenience to discuss this potential partnership further. I am particularly interested in learning about your wholesale terms, pricing structures, and any specific requirements you may have for your valued partners.
     
     Thank you for considering our application. I look forward to the opportunity to establish a mutually beneficial business relationship with [Company Name]. Please feel free to reach me at [your email address] or [your phone number] to facilitate any additional information or discussions.
     
     Your time and consideration are greatly appreciated.
     
     Sincerely,
     
     [Your Full Name]
     [Your Position]
     [Your Company Name]
     [Contact Information]

     ---

     ​

4. Request product data

   • You have now been accepted as a B2B buyer and would like to check the product catalog, now see if you can download it directly from the retailer or have to request it by email.

5. Analyze product data

   • You have now received a CSV, EXCEL OR TXT, now use the Private Search tool from us and import this file. Make sure that it does not exceed 50,000 lines and 20 MB per file. If this is the case, you will have to cut the file a little.

     
   • After the scan, filter it according to your metrics.

     
   • With the filtered data you will real insights what products turn into profit. We recommend to check your lists carefully with time to make sure you checked every possible deal and set them to your favorites.

     
6. Review your Deals

   • Now review your selected favorites in the favorites tab and decide that you would like to buy.

7. Buy products

   • Through ProfitPath you have now found some good products, you are ready to buy them in bulk and order directly from your wholesaler.

8. Receive products

   • Now you receive the products in the desired quantity and deliver them to the FBA warehouse or sell FBM. If all your calculations work out, you should now be making a profit and building a strong relationship with the wholesaler. We recommend analyzing the wholesalers' data on a weekly basis to find the best deals.

We hope this little guide has helped you find and contact your first wholesaler. Start now to build a portfolio of different arbitrage products. If you have further questions or encounter any difficulties, please do not hesitate to contact our support team. If you have further questions, please do not hesitate to contact our support team via discord or write us an email at [e-mail]