Wholesaler asking for proof of e-commerce website

I am new to ecommerce and in the process of trying to sell sports equipment online. I am looking at buying hockey equiment from wholesalers. However, there are only a handful of reputable ones in the business. One of the major ones in the business indicates that to buy and become their member, i have to have:

-A retail sporting goods storefront and/or active e-commerce website

-Valid Federal Tax Id Number and/or Reseller Certificate

My question is that how can I make my e-commerce website active before I checked price points from all the wholesalers/distributors? Do I really need to set up my ecommerce site before applying to be a dealer for these wholesalers. I will show them that I am a registered business and have a resellers certicate but my thinking was that I would udnerstand the business and the price points before creating an online presence. Any suggestions for me? Do I have all this backwards. Thank you in advance.

Jamal

Hi Jamal,

Wholesalers will be giving out highly discounted pricing for wholesale orders and the only way they can assure productivity in this line and get continuous orders is to maintain reliable resellers with valid brick and mortar stores OR e commerce websites. They do a lot of work in setting up an account with you and it entails more than you might think: the wholesaler needs to collect, verify, and process your business information; and they need to determine whether your e-business is a good match for their product line. There are also a lot of paper work to fill out and file.

You didn’t have it backwards. You just need to establish an e commerce presence first just to let them know you are in business. =)

Thank you Irene. So if a wholesaler asks to see an active ecommerce website, will an ebay store usually be enough to meet that requirement or will it have to be something substantially larger?

Jamal

Hi Jamal,

That would depend on the supplier. For some that would be fine but for others it may not be. I suggest asking the supplier directly so you know what you're getting yourself into.

Cheers :)

Hi Jamal,

You need to confirm this directly with the supplier. Please note that eBay has become an extremely competitive marketplace and it is not uncommon to find products selling at prices the same as or lower than wholesaler.

How can this be? Because lots of wholesalers sell on eBay directly to the public! Unfair yes, but its the reality.

What can you do about it?

* Order in bulk quantities to drive the wholesale price down
* Sell on another auction site other than eBay – there are heaps to choose from and profit margins are usually better. Craigslist is also a good place to sell if you live in the USA. (Let us know if you need more suggestions for places to sell online)
* Buy liquidation – this lets you get product for pennies on the dollar. (I’ll let you in on a secret, this is how lots of powersellers make money on eBay these days)
* Find a niche market with few competitors – collectibles and one-off items have amazing profit margins, even on eBay.

These days, you have to be pretty savvy to survive on eBay, so I hope we’ve given you some ideas.

Cheers!

Great info! But I still am trying to get my mind around the following catch 22 or irony of my original post:

On one hand I need suppies to open an online business, suppliers will not supply me unless I am already doing business. How can I start doing business without inventory or supplies? How does one get started then? Thank you in advance

Jamal

Hi Jamal,

This is an opinion. I see drop shipping as a low cost way to get started, and to test products without investing big in inventory. There are also some who hit garage sales just to be able to put something up for sale and get the business rolling. And then you do not stop here. In general, the profit on drop shipped items is not as high as for items purchased in bulk, because drop shippers charge a slightly inflated price to cover the storage and handling of the products they offer. But it's a great way to start doing business without inventory or supplies.

I've read you're into hockey products. Do check out this USA based wholesaler willing to drop ship - Link hidden: Login to view

For more drop shipping info, you may click on 'Education' and then go to 'Guides'. There's a downloanable file to help you discover the ins and outs of dropshipping.

All the best!

Hi Jamal,

In my experience, most suppliers just want you to dot the "i"s and cross the "t"s. In other words, every time I've run into a supplier who asks me for my website URL, I give them the URL to my eBay store, and I've never had any of them question or not accept that.

Either that, or you can try talking to the supplier and explaining your situation. Sometimes they will be willing to forego that requirement, particularly if you can demonstrate from your eBay sales experience that you know what you're doing.

I hope that helps!

Erika