How to Source eBay Dropshipping Suppliers and Amazon FBA Wholesale Suppliers

How to Source eBay Dropshipping Suppliers  and Amazon FBA Wholesale Suppliers

By at - 6 Minutes

‘Wholesale suppliers are an asset to eCommerce businesses,’ you have heard this before but what does it really mean? The term wholesale refers to the selling of new or used goods in large quantities to be retailed by another seller. Wholesalers can specialize in one specific kind of product or sell a large variety. The products are inexpensive because they were bought in bulk and needed to be assembled, distributed, packaged, or sorted before being resold. Wholesale suppliers are suppliers who specifically handle these bulk orders. There are many different wholesale suppliers options, the challenging part is choosing the right one for your Amazon or eBay business. 

What Type of Wholesale Supplier does your Business Need?

The first step to sourcing a wholesale supplier for eBay and Amazon is understanding your own company. Define your strengths, your weaknesses, the direction your business heading, where you sell your products, and so on. 

This is important because if your company sells mainly on Amazon and you are looking for Amazon FBA Wholesale Suppliers, you will have a different search process than someone looking for an eBay dropshipping suppliers. Or if you are looking to switch from focusing on just one product type to several, you would not look for a supplier that would limit your growth. From this information, determine what type of what type of wholesaler is right for you.

One type of wholesale supplier is the manufacturer itself, they focus on mass production and sell large quantities at a discounted price. The next type of wholesaler is an importer or exclusive distributor, they do not make the goods but resell large amounts of them to smaller wholesalers or directly to you. Lastly, there is a traditional wholesaler, who receives these large shipments and breaks them down for smaller businesses to sell with ease. Depending on the size of your business, you should determine the level of the wholesale supply chain you want to do business with.types of suppliers

Image credit: SaleHoo

It is important to note that prices and quantities are directly correlated. The products will be the cheapest at the top of the supply chain, but you would have to buy more products at once. The lower part of the supply chain sells products in smaller volumes but at more expensive prices. Initially, it may be better to pay a little bit more rather than overwhelm your company with too many products at once. 

How to make Contact with a Potential Wholesale Supplier

If you are confident in your company’s ability to handle large quantities of goods and you know the exact products you want, contact the manufacturer first. These branded items are untampered and prices have not been marked up yet. The manufacturer may have a minimum order policy in place and won’t be able to sell to you, but do not hesitate to ask for a list of their distributors. These distributors have already been established as credible by the manufacturer, so they would require minimal additional research. After asking each distributor on the list for a quote, determine which of the wholesale suppliers offers the products at the best prices and move on to negotiations.

If this is not an option because you do not know which manufacturers to contact or the manufacturer would not help you get in touch with distributors, there are other solutions. Check out wholesale directories, B2B marketplaces, and industry groups on LinkedIn and Facebook for posts and leads. Wholesalers will often advertise themselves on these platforms but do not be afraid to reach out to another seller and ask about their suppliers. Maybe not your direct competitor, but industry colleagues can be willing and eager to help. Another resource option is an eCommerce trade show, these are happening all over the world, and most likely in a city by you. This will serve as an opportunity to talk to wholesale suppliers face to face if you are having limited success with online research.

Ensure the Supplier is truly a Good Fit for your Company

After finishing the whole process of looking and establishing a relationship with a seemingly good wholesale supplier, your work is not done. Do not settle just because you found a decent option, the process is ongoing! If the wholesale supplier you have been working with for five years is suddenly making consistent mistakes, switching up orders, or raising the prices, you need to consider new options. The best wholesale supplier right now, may not be the best wholesale supplier for life. So keep your eyes and ears open for market insights and suggestions constantly.

Finding a great wholesale supplier is crucial due to the vast size of markets and the competition on both Amazon and eBay. Finding the right products at a good price can give your company the competitive edge it needs to succeed. Use all the tools you have available to your advantage, whether it be a diligent supplier or a product research tool, like Algopix, help your company be the best it can be. Take your first step in improving your bottom line and begin the search immediately!

Grace Axelrad

As a graduate of The University of Texas at Austin with a degree in Government and a minor in Business Foundations through the McCombs School of Business, Grace currently works as part of the marketing and business development team at Algopix, New York. In addition to being responsible for conducting market research regarding customer satisfaction and success in global markets, Ms. Axelrod contributes regularly to the Algopix blog and publishes pieces for third-party content outlets on behalf of Algopix.

Leave a Reply

Close Menu