How to Find a Legitimate Wholesale Supplier

If you are a reseller or considering becoming one, you've likely heard of at least one horror story about a reseller getting scammed by a wholesale supplier. A quick Google search will pull up thousands of wholesale suppliers, many of which are scammers. So how do you protect yourself and your business?

Get Your Reseller's Permit

Once you've registered your business, contact the IRS to apply for your federal tax identification number. The nine digit number is essentially a social security number for your business. Without it, you won't be able to attend trade shows or purchase wholesale items from reputable suppliers. Any legitimate supplier will require you to provide proof of your tax ID, often before they will even show you their catalog.

Call the Supplier

One of the easiest ways to verify the legitimacy of a wholesale supplier is to simply call them. If the phone number doesn't work or the operator doesn't list the company's name upon answering, you can assume the company isn't legit. Also, if you don't feel that you can communicate well with the operator, take heed; poor communication could easily translate to poor customer service. Move on to the next one.

Google the Supplier

If a reseller has been scammed by a wholesale supplier, they may write a negative review online. One way to check if your supplier is legitimate is via a Google search. A quick search should reveal any negative feedback or customer warnings.

Ask for References

A reputable supplier may be able to provide you with customer references or testimonials. Be sure to ask and follow up on those references.

Visit the Supplier

If you have the ability to visit the wholesale supplier, do so. While it may be expensive to visit an overseas supplier, by doing so, you can ensure that the company is legitimate, and potentially save yourself thousands in lost revenue due to scammers.

Ask Your Bank

With the majority of banks allowing customers to file charge backs when unsatisfied with a company, one way to find out if your supplier is legitimate is to ask your bank if they have any negative information on a potential supplier.

How to Protect Yourself when Purchasing Goods

When buying from a first-time supplier, protect yourself by starting with a small purchase. Always use a credit or debit card that offers buyer protection. In the event that the goods never arrive, you can file a charge back.