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By : Wiliam King
Submitted 2011-03-15 10:54:13 When starting an online store, you have got a number of choices to choose as the supplier you will be getting your stock from. Different types of suppliers have different types of limitations, advantages, and disadvantages. Remember that the selection of the supplier is of great significance, choosing the right wholesale supplier will give you the peace of mind, and you’ll be able to focus on the marketing and sales side. On the other hand,[link widoczny dla zalogowanych], selecting the inappropriate supplier will prove to be an inevitable barrier. Let’s take a look at different types of trade suppliers that you can use in your online retail business.
Manufacturers:
There’s nothing cheaper than buying directly from the manufacturers. If you are buying directly from the producer, you can be sure that you are getting your merchandise at lowest prices. Problem is, very few manufacturers will actually welcome the idea of selling to an online retailer,[link widoczny dla zalogowanych], knowing that online retailers do not normally buy products in large quantities.
Wholesalers:
Retailers typically get there merchandise from wholesalers but like manufacturers, wholesalers also have a minimum quantity requirement, but that’s quite low as compared to manufacturers. Minimum quantity requirements are intended to keep regular customers away from buying couple of units at wholesale rates. Meeting the minimum quantity requirement of a wholesaler shouldn’t be a problem if you are looking to resell. Wholesalers often supply the products to retailers on credit basis, however, in case of online retailer; the wholesalers might not be too comfortable when dealing in credit.
Distributors:
Wholesalers normally deal in just one product. For example a clothing wholesaler will be trading in different types of clothing but if you are looking to sell fashion accessories along with the clothing at your store, you’ll have to find a distributor. Distributors normally have a wider range of products. Also, it’s easier to deal with just one distributor for all of your, product sourcing needs,[link widoczny dla zalogowanych], instead of dealing with various suppliers.
Drop Shippers:
Last but not the least, drop shipping supplier is probably the most suitable type of suppliers for an online business (but only if you are lucky enough to come across a reliable one). When dealing with a drop shipping supplier, you do not need to buy any inventory; all you need to do is it look after the marketing side while the supplier will take care of the shipping and delivery. That’s the kind of an arrangement, an online retailer should be looking for, since most online entrepreneurs do not have space or resources to purchase and store the products.