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Deciding on the right Supplier And avoiding Bad ones.


Deciding on the right Supplier And avoiding Bad ones.

Postby jimmy_salehoo » 06/12/2008 06:43

Ok this is another Help topic for those of you newbies.

I hear allot of complaints on the forums and all over the net about reviewing and deciding on suppliers based on shipping times and analyzing BBB type reviews, and I'm going to explain this whole process to you in full detail.

Now you are trying to get into the business of buying from another business.

So most of the time you will be dealing with Brokers/Distributors/Vendors.

Brokers/Distributors/Vendors Are pretty much the same thing but they have different Duties. Ill explain the exact definitions below.

A broker is a party that mediates between a buyer and a seller. A broker in that context is, strictly speaking, an exchange member who actually executes the purchase or sale order , as a service to the client of the firm for which that brokerage works.

A Distributer or (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user.

A vendor, or a supplier, is a supply chain management term meaning anyone who provides goods or services to a company.


Brokers/Distributors/Vendors are not middlemen. They are your direct source to a large companies stock. You will not get these products at the lowest prices without these 3 types of companies.

Ok now were going to go with the most common Question. Shipping times

Ever been to a company that ran out of products and stated they wont have anymore for a few weeks or they don't know when they will get more in? These people know they have to wait for delivery of their products. And most wait on average 3-11 Weeks. So what makes you think you should get yours in 3 days? Your in the big leagues now so if you need a specific amount of stock to keep yourself busy you need to order larger orders and Make new orders before you run out of stock.

The most common Complaint from people buying items for resale is Shipping times. And to any professional business this is a laughable complaint.

Brokers/Distributors/Vendors in most cases store no stock. Now some do. But not all of them.

My company ** Link Removed: Only Available to Registered Members** We are a Broker but We do sometimes store Stock from Macys or Another retailer. But we are brokers for about 15 retailers. Another competing Brokerage we know of only stores Target Stock. But broker for the exact same retailers.

Our own shipping times can go from a few days to several weeks. But this is the nature of the supply business. If you want a constant supply of goods for resale you have to order larger orders. My most successful clients order new orders every couple of weeks so they are always getting in new stock.

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Reviewing a company and its performance

I see many topics on peoples methods of finding out how good a supplier is. I just had a question VIA Private message from a member stating they saw a company on the BBB and wanted me to check the company out for them. I did the research and found out that company is very reliable but they never responded to BBB complaints.


Just a bit of advice.
I see the most common method of checking out a company is that some mentioned the better business beuro review ratings. The BBB is the worst site to get a review on any company period.

Anyone and their mother can report a company to the BBB and Full details on the complaint are just not there. Every single small company can have 100 Complaints in a year.

Especially if they are high volume. Or even medium volume. I get at least 6 a month with my small company. But if I sell 100 items a month 6 complaints is only 6% of sales have problems that is very low considering the World average of customer satisfaction ratings is 80/20 Meaning 80% are satisfied and 20% are not.

And reasons for a complaint are something that you have to consider.One of the biggest complaints.

Now when you review a company you need to actually read the complaints and read them close. Compare the complaints to the actual dates. Every company will have online complaints. Unless they are perfect which is impossible lol.

If there is none. Beware as they may be too new to get a good review so buy at your own risk.

Now you will always have a shipping time complaint. And you will always have random complaints that are legitimate but some are far past stupid.

Quality complaints are a joke. Dont bother with them because in reality does a selling company have to be responsible for the quality of an item? They don't build the products why should they be accountable as they are only a selling party.

Now what you really want to watch for is complaints of Fakes or counterfeits. Any company can get them. But if you see too many then there may be a real issue you want to avoid.

Also people complaining about the loss of several thousands of dollars and non receipt of the goods. You really should not get these complaints if you are a legitimate company. This is a high sign to stay away.

Also watching the dates that complaints were made may signal a problem If allot of people complain about stock issues in the same month. Its possible that company had a problem getting in stock from a Manufacturer or a retailer for that time. But if they generally have a good review overall you shouldn't worry.

So as far as judging a company on just common complaints. You really shouldn't. Have any of you ever managed a restaurant or a retail store? Remember how many people complained about anything and everything? Does that make that restaurant a terrible place to eat? Just because a few people had a bad experience?

Hpefully this topic helps you a little I will add more tips when I have time.
Jimmy
SaleHoo Community Manager

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jimmy_salehoo

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Re: Deciding on the right Supplier And avoiding Bad ones.

Postby cbcdave » 08/03/2009 02:11

I agree with most of what you say except:

The seller may bear some responsibility for the quality of the item he sells! I always purchase samples to verify the quality of the product before I put my reputation on it. If it is not good quality I usually don't sell it or if I do, I will describe it carefully and honestly.

On the other hand...an electric shaver might look, feel and test run smoothly but break down in 30 days...how would the seller know about that.

Then again that's why there are warrantys!
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Re: Deciding on the right Supplier And avoiding Bad ones.

Postby tuhoemaiden » 10/11/2009 07:36

i'm new on here, well kind of, i joined up then got too busy and forgot but now i'm back in the action. can someone please give me some trusted suppliers for label clothing and shoes, etc

i think i want to sell these but cant quite make up my mind, any advice???
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Joined: 16/03/2009 09:13


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