Resellers or Sales Tax ID - Why do some suppliers not require one?

Full Member
lstrader
Posts: 5
Joined: 06 Jun 12
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25 Aug 12 02:38:06 pm
I'm a newbie on purchasing from wholesalers/suppliers. The question I have is that some suppliers do not require a Reseller or Tax ID. An example is Lingerie Mart. They advertise themselves as a "wholesaler", but are they? Shouldn't a true wholesaler require a reseller id? If they do not require a reseller id, then I'm assuming that anyone can purchase their porducts at their prices.

Can someone please discuss this topic? Thanks

Full Member
fm1234
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Joined: 14 Dec 05
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25 Aug 12 07:35:44 pm
The "real wholesalers require a tax ID" canard is more wishful thinking on the part of resellers than anything else. Lingerie Mart sells to both the general public and resellers; some wholesalers require a definitive reseller presence but don't actually ask for licencing; others ask for tax ID numbers as if this means anything (anyone, absolutely anyone, can get a tax ID number for free in minutes at the IRS website -- so it's hardly as if it's a serious qualification for a business.)

Simply put, there isn't really a standard for it. There are many who will insist, despite massive evidence to the contrary, that any business who doesn't require a reseller's certificate and/or tax ID are not true wholesalers, but Lingerie Mart as you point out does not require such a thing, and they definitely are a wholesale source, one of the best in their niche.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Site Admin
richelle_salehoo
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Joined: 20 Oct 08
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27 Aug 12 01:54:44 am
Requiring a sales tax ID or resellers ID does seem to make suppliers more legitimate but like Frank said it does not make those that don't any less legitimate or reliable.

Lingerie Mart has been a supplier on SaleHoo since I started working here and we have not received any serious complaints against them :)

Cheers!


Richelle

Customer Support Manager
SaleHoo Group Limited
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Full Member
lstrader
Posts: 5
Joined: 06 Jun 12
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28 Aug 12 05:44:51 pm
Thanks for the replies,Frank and Richelle.
One follow up question. If these suppliers (i.e Lingerie Mart) sell to the general public as well as resellers, with the same pricing, where is the profit opportunity for resellers?

Site Admin
richelle_salehoo
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29 Aug 12 12:39:27 am
No worries LSTrader :)

As a reseller you will be buying at wholesale and to get items at wholesale that would mean you purchase in bulk or more than a single item at a time, compared to retail purchases which would require single item purchases. So the more (quantity) you buy the lower your unit price will go down, that's where you get the advantage from.

You have to remember that the site published prices are not always the last price especially for wholesale.

Cheers!


Richelle

Customer Support Manager
SaleHoo Group Limited
Sell more with your own professionally designed and search optimized e-commerce website. Check out Link hidden: Login to view now!
Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
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30 Aug 12 03:30:52 pm
@LSTrader: As Richelle points out, most places that sell to both the public and resellers tend to have quantity discounts available.

There is also much to be said about presentation and marketing. Look at LM -- despite the fact that they do definitely sell to the public, their site just doesn't "look retail" and in the text, the word "wholesale" appears six times before the fold on the index page (and the word "warehouse" three times.) Meaning, they aren't exactly pitching the end consumers very hard, because their core business comes from resellers.

And of course, a point not discussed enough among new resellers -- price is not the only point on which you can compete.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna

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