How to find wholesale suppliers, distributors, and manufacturers | Small business tips

Mike Renaldi

Finding the right suppliers, distributors, and manufacturers can make or break your business. With wholesale sales at an increase of about 55.35 billion US dollars year-on-year, there’s certainly no shortage of potential partners.¹

Let’s dive into how to find distributors, wholesale vendors, and manufacturers that will help you complete your puzzle. We’ll also discuss how Wise Business can make cross-border payments to suppliers instantaneous and cost-effective.

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Table of Contents

What is a wholesale supplier?

A wholesale supplier is a company that sells goods and services to other businesses in bulk and usually at a lower price per unit. They often have exclusive deals with certain manufacturers that allow them to offer lower prices than what the manufacturer charges directly.

Wholesale suppliers vs. wholesale distributors vs. wholesale manufacturers

Within the wholesale world, there are three main categories: suppliers, distributors, and manufacturers. Wholesale suppliers purchase goods and resell them, acting as a middleman between the manufacturer and retailer. But what about wholesale distributors and manufacturers?

What is a wholesale distributor?

Wholesale distribution companies also purchase goods from manufacturers, but they will often provide additional services such as warehousing, stock management, and order fulfillment. Rather than act as a middleman between the manufacturer and retailer, they often act as intermediaries between the manufacturer and end customer, getting the products to market.²

What is a wholesale manufacturer?

Wholesale manufacturing essentially involves a business producing the goods themselves in large quantities and selling them to distributors or businesses at a wholesale price. These manufacturers often have their own production facilities, which let them make goods at a lower cost per unit.

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How to find a wholesale supplier for your small business

When you're looking for a wholesale supplier, it's not just a matter of finding a reputable company, but also about where to look and what other factors to consider.

Here are some useful tips on how to find wholesale distribution companies.

Step 1: Consider what your business niche is

As wholesale suppliers specialize in different products and services, you’ll want to consider your business niche first. With a sea of suppliers out there, it’ll help narrow down the potential suppliers to ones that actually have the right offerings for your business.

Examples:

If you’re planning to sell low-cost goods such as fast-moving consumer goods (FMCG), you’ll likely have a wealth of suppliers at your disposal. FMCG products are non-durable goods consumed in a short period of time, like personal care items and household essentials.³ Being in constant demand and having a high turnover rate, choosing cheap wholesale products for resale is often a popular choice.

On the other hand, if you’re looking for unique one-of-a-kind items like handmade pottery, you may want to search for wholesale distribution companies that work with artisans and craftspeople.

And when it comes to food items, it adds a whole new set of variables. With food, quality and safety are big priorities, which means partnering up with local wholesale farmers or producers that guarantee fresh and high-quality products.

Step 2: Understand your industry's distribution channels

Every industry has a unique set of distribution channels. Distribution channels are the paths products move on from manufacturers to the end consumer. It essentially gives you the full picture of how you’ll get your product to the consumer.⁴

Example:

One example of an industry with complex distribution channels is the fashion industry. In the fashion industry, products typically move from manufacturers to wholesalers, then to retailers, and finally to end consumers, unless you’re using direct distribution - selling products directly to customers without a middleman.

Getting a good idea of these distribution channels will help you understand how products move through the supply chain and the costs at each point.

Step 3: See if you can communicate directly with the manufacturer first

The best case scenario would be to see if you can contact the manufacturer directly and bypass any intermediaries. This will let you get a better understanding of their products and get access to wholesale prices that are usually not available through product distributors or retailers. Going straight to the manufacturers could help you avoid any additional costs that a distributor or a retailer might add on to your purchase.

That being said, there are pros and cons to consider. Manufacturers aren’t always able to work with small businesses thanks to their minimum order quantities (MOQ) or distribution limitations, and the relationship will require a lot more communication. But, the advantages include better pricing and the potential to create custom products that aren’t available through distributors.

Step 4: Have a productive first contact with a wholesale supplier

When you’re in contact with a wholesale vendor, you want your first impression to be the right one. It may be difficult to find the perfect match for your business needs straight away. But, having good communication and providing detailed information about your products can help get you off on the right foot.

Find out all the important information from each wholesaler you consider, including:⁵

  • Payment terms
  • Minimum orders quantities
  • Minimum purchase price
  • Delivery timescales
  • Where they ship to

By doing so, everyone is more likely to be on the same page and can avoid any misunderstandings down the line.

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Step 5: Understand where you can find wholesalers

So where exactly can you find these wholesalers? There are several ways to find wholesalers for your business. Whether you are looking for general merchandise or niche products, here are some popular ways to do so:

Your Network

One of the best ways to find good wholesalers is by asking around in your network. This could mean asking fellow business owners, industry contacts, and even friends and family. You can also join online forums related to your niche or contact local chambers of commerce for advice on where you can buy wholesale products.

Sourcing Agents

Sourcing agents are intermediaries that help you find the right wholesaler for your business. They work closely with manufacturers and distributors to source the best products at reasonable prices, while also taking into account quality control and shipping costs. This can be especially helpful if you’re looking for wholesale suppliers in countries like Japan, which have specific business practices that can make things challenging when doing it on your own.

Online Searches

Online searches are a great way to find wholesale vendors that fit your business needs. Search engines like Google and Bing can help you narrow down potential suppliers from the vast web of available options.

You can also search on wholesale websites that list products and services:

  • Top Ten Wholesale (US wholesale site)
  • Alanic Clothing (fitness apparel and activewear)
  • DHGate (famed for their lack of minimum order value)
  • Super Delivery (a Japanese wholesale site)
  • Alibaba (a popular B2B trading site).

eBay Wholesalers

Believe it or not, eBay is a great place to find wholesale products. All you have to do is search for “wholesale” in the search bar, and you’ll be shown several wholesalers willing to work with your business. The best part about using this method is that it allows you to compare prices between different suppliers without leaving your seat.

B2B Marketplaces

B2B marketplaces are a great source for finding the right suppliers. These websites allow you to sort through a huge range of products, compare prices and read product reviews before making your final decision. Popular B2B marketplaces include Alibaba, Global Sources, and TradeKey.

Trade Shows

If you're interested in reviewing options in person, trade shows are the way to go. Whether it’s a regional or national event, you can find thousands of wholesalers in one spot. Trade shows provide you with an opportunity to get face-to-face with potential suppliers and negotiate prices on the spot.

In the world of digital communication and online businesses, there are still some advantages to meeting wholesalers in-person. One big example is just putting a face behind on the messages, which could be a big help when something goes wrong or there is a miscommunication.

Industry Groups and Forums

Industry groups, forums, and associations are great places to look for wholesalers, as you can ask your peers about their experience with certain suppliers. This will give you a better idea of who’s reliable and who isn’t.

Industry Trade Publications

Industry trade publications are a great way to find wholesalers. Simply look up any relevant magazines in your industry, and you’ll often find wholesale distributors listed within the pages.

  1. Navigate the selection process: Tips for Choosing a Wholesale Supplier

With the multitude of ways you can find small business distributors, it’s important to remember that not all of them are the same.

Here are some tips for choosing a reliable and trustworthy supplier:

  • Get samples: Samples give you the opportunity to check the quality of their products and decide if they’re right for your business. Even smaller suppliers are more than willing to send you samples, so this is important to take advantage of.
  • Check customer reviews: Reading online customer reviews can give you a good indication of how past customers have found the service and quality.
  • Consider MOQ and the likelihood of negotiating the bulk prices later on: Does their MOQ fit within your budget, and do they offer bulk discounts when ordering more products? After a successful few orders and payments, this is something you should put forward. After all, if they are not willing to budge on price, then you might not want to make them a long-term partner.
  • Consider delivery time and shelf life of product if applicable: Make sure the delivery time of your product fits with your business needs. If you’re dealing with food items, don’t forget to assess the shelf life of the product before committing to a purchase.

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Popular Wholesale Products

What's popular will sell quickly, so it's important to know the top wholesale products in demand. Here are some of the most popular items purchased by resellers:

  • Education: Arts and crafts supplies, stationary, textbooks, backpacks
  • Food: Specialty products like keto and vegan products, frozen goods, snacks, beverages
  • Health and wellness: Yoga accessories, fitness apparel, vitamins, and supplements
  • Pet supplies: Pet food itself made over 120 billion US dollars in the United States alone⁶
  • Clothing and accessories: With a projected global market revenue of 2 trillion US dollars, it’s not a sector you want to miss⁷

Examples of wholesale suppliers

To help you get started, these are a few popular and reputable wholesale suppliers you could consider:

Alibaba

Alibaba is an online marketplace that connects buyers and sellers in almost any industry. It’s a great platform to find potential suppliers as it allows you to search for specific products or categories, compare prices, and even check out suppliers’ ratings. You can also use the Request For Quotation (RFQ) feature on Alibaba to get quotes from multiple suppliers at once.

Faire

Faire is a wholesale marketplace that specializes in helping small business owners find unique products and connect with over 100,000 verified independent makers, artisans, and brands. It offers a range of benefits, such as no minimum order quantity, free returns, and exclusive discounts.

Tundra

Similarly to Faire, Tundra looks to connect small business owners with independent makers and brands. Tundra's mission is to support small businesses and offer a more personalized and authentic shopping experience for consumers. The platform features a wide range of products, including home decor, accessories, beauty and personal care, and more.

Wholesalers suppliers by location

When it comes to finding wholesale suppliers, you can either look for international or domestic options. Depending on the type of goods and services you want to offer, each option has its own advantages and disadvantages.

Overseas

If you’re looking for cheap items with a high turnover rate (e.g., FMCG products), overseas wholesalers may be your best bet. Overseas wholesalers often offer lower prices than domestic suppliers due to their access to cheaper materials or labor costs in other countries.

Example:

You could consider sourcing from Chinese wholesale websites if you’re looking for cheap products to resell in the United States. Chinese wholesale suppliers are known to offer lower prices compared to other countries with similar quality standards - making them an attractive option for US entrepreneurs. But of course, international orders come with their own set of challenges, such as dealing with international shipping.

Domestic

On the other hand, domestic wholesalers are easier to reach and may be more willing to customize their services for your business. They also may be more familiar with your business culture and able to meet your demands.

Small businesses, in particular, can benefit from local wholesale suppliers, as they’re often better equipped to handle smaller orders and provide customized customer service. Domestic options are also beneficial if you need a quick turnaround time on your order, since there won’t be any international shipping delays or customs paperwork involved.

Wholesale dropshipping suppliers

Dropshipping is a great way for small businesses to start selling products without having to stock any inventory. They not only offer wholesale prices that you’d want to take advantage of but also handle the shipping and delivery directly to customers. The downside is that this method is a lot more impersonal - you won’t be able to see the products to check for quality, and branded experiences will be significantly more expensive.

Wholesale FAQ

Still have questions about how to find a wholesale supplier? We’ve got you covered with our FAQ below.

How do I pay my suppliers?

There is a range of methods to pay suppliers, whether locally or overseas. Domestic payments typically call for traditional methods such as bank transfers or checks. Overseas payments can add be more complicated with currency conversions and fees.

Try Wise Business for Distributor, Supplier, and Manufacturer Payments

If you’re working with wholesale suppliers overseas, Wise Business offers international transfers at a low cost, using the fairest rate possible - the mid-market rate.

Benefits:

  • Clear and transparent rates
  • Instant payments
  • Batch payments: send up to 1000 invoices in one click
  • Wise Business API: Set up recurring and automated payments
  • Integrate your accounting software with Wise Business
  • Send to 70+ countries and hold money in 50+ currencies

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What is wholesale?

Wholesale involves selling goods in large quantities to retailers and businesses rather than to individual consumers. The products are typically sold at a discounted price compared to retail prices, allowing businesses to make a profit by selling them at a markup.

How do I find US wholesale suppliers?

To find US-specific wholesale suppliers, you can attend trade shows, search online directories and marketplaces, reach out to industry associations, use social media platforms, and ask for referrals from other businesses.

What wholesale website is best?

There isn’t a single "best" wholesale website, as it ultimately depends on the products you’re looking for. While you’d go to Faire for independent brands and makers, those looking for industrial and manufacturing suppliers would likely turn to something like Thomasnet.

Can I buy wholesale without a business?

Depending on the country and purpose of your purchase, wholesale suppliers can require buyers to have a registered business or a tax ID number to purchase products at wholesale prices. Some suppliers may let individuals or non-business entities, but their MOQs may make it difficult, as it might not be worth it for them to give you a small number of units.

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What’s next for you to learn?

Blog Post: 3PL Warehousing: What is it?
Blog Post: How to Find a Manufacturer for a Product
Blog Post: Small Business Advice: How to Find a Manufacturer


Sources:

  1. https://www.statista.com/statistics/1120250/monthly-wholesale-sales-us/
  2. https://www.the-future-of-commerce.com/2021/04/22/what-is-wholesale-distribution-definition-examples/
  3. https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp
  4. https://www.investopedia.com/terms/d/distribution-channel.asp
  5. https://www.thebalancemoney.com/how-to-find-a-wholesale-distributor-2531713
  6. https://www.statista.com/markets/415/topic/465/pets-animal-supplies/#statistic2
  7. https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market
  8. https://www.trustpilot.com/review/wise.com

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