Understanding how to buy wholesale in a way that works for you can help grow your business, establish strong connections, and satisfy your customers. According to the 2023 Global Wholesale Market Report, the wholesale market is valued at $48 billion, and that number is expected to grow to nearly $62 billion by 2026. So there are countless opportunities to choose great brands, but it can feel overwhelming. We’ve compiled some of the most helpful information for new retailers when they’re looking to start buying wholesale.
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Buying wholesale means purchasing products in bulk to resell them at retail prices to consumers either online or in person. Since they’re buying a large quantity of items at once, those who buy wholesale can get goods below their typical retail value and make a profit as they sell them downstream.
Before you start buying wholesale, think about what you need for your retail business. What’s your starting budget for inventory? Do you plan to source your goods locally or globally? Is sustainability a priority for you? Do you want to stock only hand-crafted products? Come up with a checklist of your preferences before you start your search.
For small retail businesses, online marketplaces can be the quickest, simplest way to find your perfect wholesale match. You can search by shopping category, price, geography, and other filters, and you can sort through user reviews. Some marketplaces require annual or one-time membership fees and others are completely free. On Faire, where account sign-up comes at no cost, you can connect with more than 100,000 wholesale brands.
At retail trade shows, wholesale distributors and manufacturers exhibit their wares to retail attendees. By going to trade shows for your particular niche, you can discover brands and start making a list of contacts to reach out to directly. There are trade shows for everything from eyewear to jewelry to home decor, and they’re a great starting point when it comes to building your network. Faire even offers virtual retail trade shows that you can attend from the comfort of your home. Skip the travel, get connected with more than 25,000 brands, and save money at the Faire Markets annual event.
No matter what retail niche you’re in, there’s likely a trade publication for it. Do you sell fashion and apparel? Check out a textiles trade magazine like California Apparel News. Are you selling home decor items? Home Accents Today has the latest trends and insights. The advantage of keeping current with these magazines is that brands may advertise within their pages, and you can scoop up some under-the-radar distributors.
Placing a large wholesale order can be costly, especially for a new retailer. That’s why Faire created the Open with Faire program. This exclusive offering for new store owners helps cover the cost of stocking up on inventory so you can save your cash for things like rent and payroll. Get up to $20,000 in inventory financing with 60-day payment terms—meaning you can stock up now and pay 60 days later.
Though requirements vary from state to state and you should check your local laws, there are a few must-haves for retailers before they can buy wholesale products.
Resale certificate: A resale certificate may also be called a tax exemption certificate or a wholesale license depending on where you live. It identifies you as a legal reseller and allows you to buy wholesale items without paying a sales tax. The forms for each state are different, and wholesalers may ask to see your certificate before they sell to you.
Seller’s permit: In order to get the resale certificate mentioned above, you must already have a seller’s permit. You need a seller’s permit to legally collect sales tax from your shoppers.
Forms of identification: Wholesalers may want to see some type of I.D. before they can sell to you. That could be the tax ID number for your retail business or a driver’s license.
Bank account information: Ideally, you’ll have a bank account specifically for your business to pay your wholesale partners. Having a separate account makes tracking cash flow and keeping records for taxes easier.
Think about minimum order quantity. Minimum order quantity, or MOQ, is the lowest number of items you can purchase from a brand at one time. Instead of a product quantity, you may also see this listed as an order minimum with a dollar amount or as a case size, which is the multiple of which a given product is sold. If you see a wholesale listing for wool blankets and the MOQ is 10, that means you have to order at least that many blankets to work with that brand. If you’re limited by a tight budget, paying close attention to MOQs is crucial.
Avoid overstocking inventory. Although it may be tempting to buy a surplus of merchandise when you find a good price, it’s important to factor in inventory carrying costs. Inventory management software, like inFlow Inventory, will give you a real-time look at your stock levels. You can set reorder points for each product to ensure you maintain the perfect stock level. It can also track units of measure, so you can buy by the pallet and sell by the box.
Request merchandise samples. Before you place a large wholesale order, you’ll want to ensure the quality is up to your standards (and the standards of your customers). If obtaining samples isn’t possible, then find a brand with a low MOQ so you can start by ordering a smaller quantity before you fully commit.
Pay attention to industry trends. Do you know what Pantone’s color of the year was for 2023? If you sell apparel, decor, and accessories, trends like those are good to know. (It was magenta, by the way.) As mentioned, trade publications are a great way to stay up-to-date with current and forecasted trends.
Understand lead time. A brand’s lead time is how long it takes in advance to prepare and deliver your wholesale order. Depending on whether you’re ordering locally or globally, lead times can vary greatly. For peak shopping periods like the holidays, lead times might be even longer, so it’s good to buy early. The last thing you want is your New Year’s Eve decor arriving at your shop … on January 2. On Faire, brands list their lead times on their shop pages, and you can always send a quick message to ensure orders will arrive on time.
Buy from knowledgeable brands. The brands you work with should have expert knowledge about their product category. If you sell jewelry, choose a brand that knows the difference between materials like gold-plated and gold vermeil. Any vendor who can’t answer simple questions about their products is not a good choice.
Don’t forget about customer service. Even if the brands you choose have great products at a great price, that can be undermined by terrible customer service. Prioritize brands that are reliable, communicative, and attentive. If things go wrong with an order, it makes a difference to have great customer support that solves problems quickly.
Do careful research on what products are popular and trending. Maybe wax candles are out and soy candles are in? Are dangling statement earrings all the rage or is it all about the petite huggies now? On Faire, you can shop by category and sort by bestselling products to home in on just the right items for your store.
In Faire’s makeup category, you can easily sort the results by face, lips, nails, and eyes to find exactly what you’re looking for.
Look through this section to find books, stationery, greeting cards, tabletop games, and even party supplies. Many of these brands create with handmade and even eco-friendly materials.
Find your store’s perfect fit. Sort by sandals, boots, slippers, or loafers. You’ll find a section for women and men, both of which also include makers of shoe care products — a potential kitting opportunity for footwear that requires maintenance or protection (like leather).
Shop bands, wrist watches, and even pocket watches for any type of customer. Filter by color and material, as well as price and occasion for shoppers who visit your store with a specific budget or event in mind.
Browse trending brands section to see what’s hot right now, from chunky gold to semi-precious natural stones. You can even browse by stone type for those customers looking to align their style with their birthstone.
Faire’s apparel selection carries a wide variety of trendy finds, from wide-leg denim pants to button-down plaid. You can filter by different categories like activewear, dresses, maternity wear, and more.
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Find furniture to suit your retailer’s specific aesthetic. In the furniture category, you can explore vintage and modern pieces in all kinds of styles.
Score great wholesale prices on popular snacks, beverages, and pantry staples like Momofuku Chili Crunch or Poppi prebiotic soda.
This broad category caters to several different store types: Whether you sell to new parents trying to fill their nursery, or to toddlers who have finally outgrown their winter coat, you’ll find your next stock here. In the toys and learning category, you can also browse educational puzzles, games, and children’s books for all ages.
Whether your shoppers are into fanny packs, cross-body, or weekender bags, there are tons of options to explore, and for every season.
Finding the right brands and understanding what wholesale products to buy is the first step to building a thriving retail business. Taking the time to understand more about the wholesale business helps you avoid costly missteps and wasted time. So, ask strategic questions, do some research, and compare your many options as you start your wholesale buying journey. If you’re a new retailer, read more about Open with Faire and learn how to apply for up to $20,000, with 60-day payment terms, to stock your new shop.
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to be a wholesale purchaser you must have a certificate from the
Department of Revenue in your state,and in california a nd some
other states a certificate of resale intent as well, and a federal
EIN #( which if you go the site any individual that has a social
security number can get). according the the federal trade commision,
not the IRS, or dept. of revenue, one must make over 2500.00 in most
states, and i believe 6,000 in certain classes of trade relative and
specific to the “industry of jewelry making” as a whole; which means
there are different numbers and income levels for gemstone sales,
precious metals dealers, chemical refining of precious /non-ferrous
metals, resale of strung beads or other predrilled objects, the sale
of temporarily strung beads or other objects,cultured pearl
import/export and resale, welding soldering and brazing, marketing
and graphic design,suppliy tool and equipment manufacturers,tool and
equipment resellers,casting of bas emetals, casting of precious
metals for resale,metal milling…the point is there are totally
specific and spelled out levels of business…that a person,
partnership, agency, corporation or other group of people or
individuals that derrive a profit from must meet or they are not
considered a wholesaleer/ wholesale business, or more specifically
RESELLER…that does not mean that an individual cannot buy
wholesale…And there is the difference. Anyone with an EIN and a tax
number from at least one state-preferably their state of residence,
although some people who apparently like to pay taxes, have
certificates for each state in which they sell their wares- or go
through galleries, or other agents in other locations that collect
federal sales taxes and state taxes on the goods and services they
aell ifor the creator of the end product- be it custom made jewelry
or bags of jump rings with a header card. for hanging and brand
promotion.Generally someone with net 30 accounts in place can get
credit from companies that supply materials equipment and
consultation to all manner of metalsmiths, jewelers, …and even
wire-wrappers! so either you do have credit or you don’t…it’s all
based on how much you are willing to give the government
and the FTC rules for the specific category you r PRODUCT falls
into…as i said anyone can get a federal Employee Identification
Number (EIN)…you don’t ever have to use it-just to posess it.that is
the key to establishing wholesale credit in most cases…along with
trade references from companies you have purchased goods from and
have established accounts with that are themselves resellers…One
voluntarily pays income taxes, one is required to collect sales taxes
in the state the seller resides in I believe that’s true in all
contiguous states, however,territories,protectorates and possessions
have another set of additional rules-duty taxes, or customs (
i.e.guam,the us virgin islands, )…and if one sells in those locales
directly is responsible for those additional fees regardless of where
you have your studio/business located provided you derrive enough
income from those sales to have to report them as income at all…
except for a few individuals in this trade who would probaly refute
that they do not know everything there is to know about metallurgy,
and the industry, art and science of metalsmithing,jewelrymaking, or
whatever you term your affiliation with the task of creating jewelry
or wearable art or the supplies and tools with which to execute the
related tasks, or distribute them,or even educate others in the same
–we are all students here on an ongoing basis…some more
experienced , others less so…in the end it all boils down to account
holders and the extension of net 30 terms…you either meet the
criteria, or not…no one is more advanced because they paid the
federal government taxes and are thereby Legally Entitled to purchase
wholesale ggods. .Read on if you are still uncertain of wether or not
you think you should be allowed to buy as a wholesale entity:
You will need an EIN if you answer “Yes” to any of the following
questions. For your convenience, clicking on the “Yes” option will
take you directly to How to apply for an EIN.
Additionally, if you provide health insurance for your employees,
you may need a National Standard Employer Identifer (NSEI) for your
electronic health transactions. To determine if you need an NSEI,
refer to the Department of Health and Human Services’ NSEI
frequently asked questions.
Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or
Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a
non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt
Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers’ cooperatives
Plan administrators
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