Wholesalers play an important role in the distribution network of many companies. They act as intermediaries between producers and retailers or other end users. Like any business relationship, working with a wholesaler has both advantages and disadvantages.

What is the difference between retail and wholesale?

A wholesaler is someone who buys products in bulk from manufacturers or distributors and then sells them to retailers or customers at a higher price. Wholesalers are usually large companies and play an important role in the supply chain as they provide a link between manufacturers and retailers. By buying products in bulk, wholesalers can receive discounts from manufacturers or distributors, which they can then pass on to their customers.

A retailer is a person or company that usually buys goods or services from wholesalers or distributors and then sells these goods or services to customers. Retailers are also an important link in the supply chain because they bring goods and services closer to the end consumer.

Why should I consider a wholesaler?

Advantages vs disadvantages:

Advantages:

Access to a wide range of products: Wholesalers usually offer a variety of products under one roof, which simplifies procurement. Through ProfitPath it is possible to scan the entire product range with an Excel, CSV or TXT to directly recognize which deals might suit you. Use our Private Search feature and upload your received files directly from the wholesaler.
Cost efficiency: By buying in bulk, retailers can benefit from lower prices that wholesalers receive due to their large order quantities from manufacturers.
Large Quantities: With wholesalers there are no quantity restrictions like there are with many online retailers these days.
Market knowledge: Wholesalers often have in-depth knowledge of the markets and products they distribute and can offer valuable insight and advice.
Building a Business relationship: If you start buying more frequently at a wholesaler they will recognize it and you can slowly build a relationship, to get better prices, exclusive deals and grow your network.

Disadvantages:

Dependence: Heavy dependence on a wholesaler can be risky, especially if there are supply shortages or quality issues.
- Quality problems / replica warning: You have to look for really reputable wholesalers. Especially in the perfume industry there are often fakes and replicas, which is dangerous for you, your Amazon account and your customers. So check your wholesaler carefully before you buy anything.
Potential delays in delivery: Depending on the efficiency of the wholesaler, deliveries may be delayed, which can lead to stock-outs at retail. We do not recommend simply selling goods if they are not yet with you and checked.
Larger upfront investment: Many brands require customers to meet minimum order quantities (MOQ), and these quantities can be substantial. Consequently, it's essential to be prepared to invest a significant amount of money.
Higher risks due to large product batches: Losing money on a few individual products can be inconvenient, but it's not the end of the world. However, experiencing significant losses in wholesale transactions can have a serious impact on your business.

How do I make initial contact with a wholesaler and how do I find one?

Step by step with our Wholesale Guide

Conduct online research: Use search engines to find wholesalers in your desired sector. You should think about which sector you want to gain a foothold in — is it cosmetics, toys, or perhaps electronics? You can also ask business partners or industry colleagues for recommendations.
Preparation for the first contact: Before making contact, find out about the company, its product offering, terms and conditions and reputation in the industry. Make a list of your needs: product types, quantities, price points and delivery terms.
Make initial contact: First check the website for B2B wholesaler registration. If that's not available: direct call or email. If you want to look more professional, get a catchall email with your company name. Arrange a video call or face-to-face meeting to build a stronger relationship.

First contact example text:

Subject: Wholesale Account Application for Diverse Product Range

Dear [Wholesale Department],

I trust this message finds you well. My name is [Your Name], and I am writing to express my interest in establishing a wholesale account with your renowned company, known for its extensive and diverse range of high-quality products.

As the owner of [Your Business Name], we are enthusiastic about the prospect of collaborating with [Company Name]. Your comprehensive selection of goods perfectly complements our business model, and we are eager to introduce your products to our discerning customer base.

Enclosed, please find all the necessary documentation, including our business registration details, and any additional information required for the wholesale account application process. If there are specific forms or procedures that need attention, please let me know, and I will promptly address them.

I am available for a meeting or a phone call at your convenience to discuss this potential partnership further. I am particularly interested in learning about your wholesale terms, pricing structures, and any specific requirements you may have for your valued partners.

Thank you for considering our application. I look forward to the opportunity to establish a mutually beneficial business relationship with [Company Name]. Please feel free to reach me at [your email address] or [your phone number] to facilitate any additional information or discussions.

Your time and consideration are greatly appreciated.

Sincerely,

[Your Full Name]
[Your Position]
[Your Company Name]
[Contact Information]

Request product data: Once accepted as a B2B buyer, check the product catalog — either download directly or request by email.
Analyze product data: You've received a CSV, Excel or TXT. Use our Private Search feature and import this file. Make sure it does not exceed 150,000 lines and 100 MB per file — otherwise split the file.
After the scan, filter it according to your metrics.
With the filtered data you will get real insights into what products turn into profit. We recommend checking your lists carefully to make sure you checked every possible deal and set them to your favorites.
Review your deals: Review your selected favorites in the Favorites tab and decide which you'd like to buy.
Buy products: Through ProfitPath you have found good products. You can now buy them in bulk and order directly from your wholesaler.
Receive products: Receive the products and deliver them to the FBA warehouse or sell FBM. If all calculations work out, you should now be making a profit and building a strong relationship with the wholesaler. We recommend analyzing wholesaler data weekly to find the best deals.