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E-commerce sales topped over $4 trillion U.S. dollars globally in 2020 with more than 2 billion people purchasing services or goods online. Online retailers need to keep the right amount of inventory on hand to keep up with growing customer demand while also keeping profit margins high. 

A wholesale distributor can offer lower prices when purchasing goods in bulk as they buy them directly from the manufacturer. There are several viable options when it comes to finding a wholesale distributor, from talking to your supplier to searching online. 

Benefits of a Wholesale Distributor


A wholesale distributor resells inventory to e-commerce and retail businesses after purchasing large quantities of goods directly from a manufacturer. This can have a variety of benefits for e-commerce and small businesses, including the following:

  • Cost-effective pricing: Since wholesalers buy product in bulk from manufacturers, they can offer discounts and lower prices than you would be able to obtain from the supplier directly.
  • Consistent access to product: Wholesale distributors can ensure that you have a steady stream of product as they buy goods in bulk and are able to provide you with product when you need it. 
  • Better access to products: Using a wholesaler can allow you to buy products you would be unable to usually get when your purchase quantities are too low to buy directly from a supplier. You are also able to buy products that you might be geographically able to obtain as you will not be limited to only suppliers located near you.
  • Quality control: You can easily track how products perform with your customers, and you can switch wholesale distributors if there are too many negative reviews

How to Choose a Wholesale Distributor


Finding and choosing a wholesale distributor does not have to be a difficult task if you follow these outlined steps and tips.

Contact the Supplier & Ask for Resources

The first step you should take before looking for a wholesale distributor is to contact your supplier directly. Find out if they will grant you wholesale prices if you purchase directly from them.

Oftentimes, suppliers will have a purchase minimum that you may not reach, however. If this is the case, ask them for their list of reputable wholesale distributors and their contact information.

Contact Each Distributor

You should then reach out to each wholesale distributor on the list to ask them about their wholesale unit prices and minimum requirements for purchase. 

Look for Distributors Online

You can commonly find wholesale distributors using an online search tool and typing in your product niche as well as the words “wholesale distributor.”

Request Samples

When considering a distributor, ask them for product samples to test and inspect to ensure that it meets your requirements and level of expected quality.

Ask for References

When speaking to a wholesale distributor, ask them for references. People in your network can also refer you to quality wholesalers they work with as well. 

Understand Distributors Are Not All the Same

There is a wide range when it comes to wholesalers. It is important to choose one that is going to be reliable, offer high-quality product, have low prices, and provide you with what you need.

Wholesale distributors can often be wary about working with e-commerce businesses, and many will not offer drop-shipping options either. Be sure to work with a wholesaler that fits into your business model.

Check Into B2B Marketplaces

Business to Business (B2B) marketplaces can be a place to find wholesale distributors, but this can be a little more time-consuming. There can be many benefits to working through a B2B marketplace, however, so it is definitely something to consider when looking for a wholesale distributor.

Wholesale Distributors FAQs

Wholesale distributors can help you take your e-commerce business to the next level by offering lower prices, quality products, reliable and consistent inventory levels, and access to different products that you might not have been able to obtain directly from the supplier yourself. With the right wholesale distributor in your retail supply chain, you can grow your profit margins and your e-commerce business.

What is a wholesale distributor?

A wholesale distributor is an organization that buys large amounts of product in bulk from a supplier and then is able to offer it to retailers at discounted rates. Wholesale distributors are also called wholesalers. They can provide product discounts and a more reliable inventory stream.

Who do wholesale distributors work with?

Wholesale distributors will typically not sell directly to the public. To work with you, they generally require that you are a registered business meeting their wholesale requirements.

Wholesale distributors commonly work with retailers and resellers. However, wholesalers will also work with e-commerce businesses if this is within their business model.

How to find a wholesale distributor?
To find a wholesale distributor, you should first check with your product suppliers to see if they have minimum purchase amounts, if you meet them, and if they will allow you to purchase products directly from them for a lower price.

If you do not meet their requirements to buy from a supplier directly, you should then ask them for information and referrals to wholesale distributors that they know to be reputable. You can also do an online search and talk to other people in your network for referrals to quality and reliable wholesalers. 

Are all wholesale distributors the same?

In short, no. There is a wide range of wholesalers out there, and not all are created equal. Some are more reputable and reliable, and some offer higher quality products and service than others. It can take some trial and error to find the right wholesaler for your business.

References

E-Commerce Worldwide. (February 2022). Statista.

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