Wholesale Buying Problem Areas and How Best to Avoid Them

Without doubt the worst problems come from sourcing wholesale companies online and using companies without testing their service.  Most problems surrounding wholesale buying can be avoided by making contact with local suppliers and forming exclusive marketing arrangements, and this is what we always recommend you do.  These problems show why:

*  Many ‘so called’ wholesale companies, especially working entirely online, are actually buyers themselves, also known as sub-wholesalers, who purchase from other wholesalers, add a hefty profit, and pass all their overheads on to you. 

*  Many ‘wholesalers’ are not product suppliers at all but just a source of information about ‘possible’ wholesalers for your chosen products.  For ‘Possible’ read: ‘addresses culled from any old telephone directory, out of date, no longer in business, not even selling products in bulk, perhaps not even selling products at all.’  Wholesale lists are a nightmare, you don’t ever want to buy a so-called ‘List of Wholesalers’.  Even genuine lists date fast and, because these lists sell in their thousands, whatever profitable products did once exist are soon out of stock and market-saturated on eBay.

*  Some companies charge a membership fee to view their products online, another sign you’ll access lists of companies (some also charging hefty membership fees) and very few genuine wholesale supply sources.  Note: this is not always the case and some companies charge a fee, usually a light one, to access lists of genuine updated wholesale supplier sources.  It’s hard to know good from bad, so if in doubt go to www.google.com, key in the name of the supplier or their web address, add ‘scam’ and you’ll soon learn who to trust. 

For a hopefully fictitious supplier, called ‘Money Making Products on eBay’ operating from London, go to Google and key in ‘money + making + products + on + ebay + London + scam’.  If nothing turns up, that usually means the company is genuine, especially if they’ve been in business a few years.  But it could also mean the company is new and not yet indexed on Google or scam news is still filtering through.  You can test how new a company is by keying its url – internet address – into Google’s search engine, if nothing turns up the company is probably too new to be registered on Google but that does not make it a scam.  Yet!

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