In simple terms, acting as a wholesale distributor is the activity of matching manufacturers with retailers so that consumers will have products to purchase. You buy the products from the manufacturer in bulk at a discounted price and in turn resell them to retailers. This is a large and vibrant segment of our economy and can be quite lucrative if you select the right products to sell. Sound simple enough doesn’t it? Being a wholesale distributor can be profitable, but it can also be very complex. You need to get a clear picture of the ins and outs before you make your financial commitment. But if you do your homework and understand what you are getting into you, it is possible to make a good living and enjoy the freedom of working on your own.

Your key to success as a wholesale distributor is matching products to customers. This sounds simple enough but there is no magic formula for deciding what type of merchandise will sell best. A good way to start is with products you are familiar with and are interested in. If you enjoy electronics and know about the market for these types of products, perhaps this is the industry for you. If you a pet lover and are familiar with the different products that are popular for people who have animals, this might be your niche. The important thing is that the products you select should be something that you have an interest in and are familiar with. If you are good at spotting consumer trends, all the better! Many wholesale distributors start with products and industries they know and then branch out into other areas as they grow.

Now, where will you get your products? Because wholesale distribution is truly a global business, you will likely be dealing with sellers in a country other than your own. This will add additional challenges but people overcome these challenges everyday. You just need to be sure you understand what you are buying and what your obligations are. If you need to consult an attorney, by all means do this. You want to protect your investments.

There are many ways you can find out about potential manufacturers from which to buy your products. Your local public library will likely carry directories with all sorts of listings of sellers and the Internet is a treasure trove of information on who sells what. There are hundreds of sites that provide nothing but listings of manufacturers that are located around the world. Once you find reliable sellers your job as a wholesale distributor will become much easier. As you place your orders your primary job will be to maintain your relationships and to monitor your costs and continually work to get the best prices you can.

So will you be storing your products or will they be shipped directly to your buyers. This practice, called drop shipping, is becoming more and more popular and it’s easy to understand why. By drop shipping you avoid the cost of storing your products. But this is not fool proof and you need to make sure that your suppliers are reliable and you have a way to track your products as your orders are processed. Your customers are buying from you, not your supplier and your track record and good name are riding on them. If decide to store any of your products, where will you store them? Will your home garage be big enough or do you need to rent additional space?

So you are ready to go. You’ve lined up your suppliers and you are ready to start taking orders. Now what? You need to let buyers know you are out there. At minimum you will need a website. Other marketing tools you can use are direct mail, fliers, newsletters, and advertising. Really knowing your market will come in handy here. Where do buyers get their information? It is mostly through site search or do they read trade publications. Do you need to attend trade shows or should you purchase a mailing list? If you expect your buyers to be primarily Internet sellers then certainly Search Engine Optimization should be a term that you need to become familiar with. Your buyers need to be able to find you!

Being a wholesale distributor by building a business from the ground up is presents a variety of challenges. But it can be a very rewarding and lucrative career. While you will need some startup capital, you can get started with a reliable Internet connection and a willingness to work hard. If you have selected products you enjoy, then that’s half the battle. You are on your way to building something of your own. Whether you make it or not will depend on your talent, willingness to work hard, and your business skill. Good luck!