Small business & Startups forum

Question

How do I establish business partnership with wholesale compa

by macy-gray / July 18, 2013 2:29 AM PDT

Hi there. I'm an young entrepreneur looking forward to sell some products online. I wish to ask you guys few questions about wholesale places.

I've created an LLC in Wyoming as an foreign entity (I'm a resident of European country). I've obtained my EIN number as well as certificate of LLC creation from Secretary of State. This is all I have for the moment. Here's a couple of questions I would like to ask:

1. I would like to ask which documents exactly are required by any professionally operating wholesale company to confirm me as a business partner and unlock the possibility to see their products and prices ? How to prove them in safe way that I am a legal LLC ?

2. Do I need to sign an agreement or some sort of contract before I'll take anything from them ? I ask this for my own safety as I've heard that there is a lot of scams out there. I would like to know what sort of protection I can have while cooperating with any wholesale company ?

3. How can I know if a particular wholesale company is legit and trusty ? Where I can find them ?

Any help will be equal to gold for me

Cheers !

Discussion is locked
You are posting a reply to: How do I establish business partnership with wholesale compa
The posting of advertisements, profanity, or personal attacks is prohibited. Please refer to our CNET Forums policies for details. All submitted content is subject to our Terms of Use.
Track this discussion and email me when there are updates

If you're asking for technical help, please be sure to include all your system info, including operating system, model number, and any other specifics related to the problem. Also please exercise your best judgment when posting in the forums--revealing personal information such as your e-mail address, telephone number, and address is not recommended.

You are reporting the following post: How do I establish business partnership with wholesale compa
This post has been flagged and will be reviewed by our staff. Thank you for helping us maintain CNET's great community.
Sorry, there was a problem flagging this post. Please try again now or at a later time.
If you believe this post is offensive or violates the CNET Forums' Usage policies, you can report it below (this will not automatically remove the post). Once reported, our moderators will be notified and the post will be reviewed.

All Answers

Collapse -
Answer
1. Varies with said company.
by R. Proffitt Forum moderator / July 18, 2013 2:44 AM PDT

As each company sets its own rules you would talk to their sales to figure out what they want. However I think it's worth writing that some newer folk think you can get this done without talking on the phone. Business hasn't changed much over the years. That is, I still get to call and talk to vendors, suppliers as well as travel to meet with them.

2. Varies with company. But in business it's still about the relationship and more. If you don't trust them, then why are you there? Go elsewhere.

3. Good question. For the companies I've worked for we send our folk (I've gone on such trips too) to evaluate the supplier. Wouldn't you do the same?
Bob

Collapse -
what are the standards then ?
by macy-gray / July 18, 2013 3:02 AM PDT

1. What are the standards then ? Some companies pretend to be wholesale lots but they present prices to everyone and let everyone buy their products without prior verification. Should I seek only those wholesale places that require some documents from me ? What sort of documents are being asked in order to prove that my company exist ?

2. If you use dropshipping methods or just order larger quantity for the first time then obviously you can be scared that someone can trick you out. Startups have small budgets so I want to avoid being scammed. Any sort of protection is important.

3. I think this wouldn't be possible as I cannot afford trip to usa just to check if a company is legit. Is there a way to verify each company ? From where should I know which company is legit and which not ?

Collapse -
1. Standards are nice
by R. Proffitt Forum moderator / July 18, 2013 3:11 AM PDT

Because there are so many to choose from.

I'm left a little bewildered by your posts because as a business person you would get to know your suppliers. And said suppliers will tell you what is required.

2. Dropshipping. Now I'm beginning to get your play. It appears you are trying to get on the "long tail" retail anything craze.

Good luck with that.

3. This may be the killer issue. If the business can't support the usual travel and more then it may not be worth doing. Again, if you can't work with the company, then it's game over again.

Glad to see you ask, but it appears you are a bit new and green. You'll get better.
Bob

Collapse -
why dropshipping would be a bad idea ?
by macy-gray / July 18, 2013 3:52 AM PDT
In reply to: 1. Standards are nice

why dropshipping would be a bad idea ?

Not everyone has thousands to spend in the beginning. Every startup has problems in the beginning. The goal is to generate a little revenue and start growing, changing business scheme from dropshipping to importing and selling.

Collapse -
Your choice.
by R. Proffitt Forum moderator / July 18, 2013 4:01 AM PDT

Do what you want. There are those that will sell sight unseen any drop ship product. They are trying the long tail system (I will not detail this as you know what that is) and if they drop ship then THE BIG QUESTION FOLLOWS.

-> What differentiates you from anyone else?

Drop shipping and the companies that use such come and go with such speed that you gotta ask the big question.
Bob

Collapse -
ok wise guy
by macy-gray / July 18, 2013 4:28 AM PDT
In reply to: Your choice.

so where from I should take money for goods ? Daddy lawyer ? Daddy doctor ? Not everyone is in great financial situation when he's starting. Nothing makes me different from my consumers except that I have sell channel, experience, minimal connections and I'm doing it legally.

Collapse -
Those are not the questions you lead with.
by R. Proffitt Forum moderator / July 18, 2013 4:32 AM PDT
In reply to: ok wise guy

As we progressed down the discussion it became clear you want to start another garage, kitchen or such web site that you order stuff from but never have the office, shipping department and more.

That is well, one of those "long tail" ideas and if you continue down this road you will have to learn this the hard way.

As to your legal questions, that's for a lawyer.
Bob

Collapse -
Sorry.
by R. Proffitt Forum moderator / July 18, 2013 4:40 AM PDT

I meant to that I was guessing about your garage, kitchen or web site business. You never made it clear except the clues are here you are attempting the near zero buck long tail idea (which is pretty well discussed.)

Collapse -
Everyone needs to begin from something
by macy-gray / July 18, 2013 4:48 AM PDT
In reply to: Sorry.

Everyone needs to begin from something sonny. I do not plan to run such a business model for years. Just first months until there is a budget to change the business model into something more appropriate. Of course moral and politically correct users of cnet are here to discourage me completely, cause of course they love the system, they had money for creating something, or a rich daddy. Thanks a lot, stick to your things, I'll stick to mine.

Collapse -
Not that.
by R. Proffitt Forum moderator / July 18, 2013 5:13 AM PDT

I shared above that you talk with your suppliers and guessed this was your first business venture. My first few failed and then I did better as I learned more. But you might be thinking there are a concrete set of documents and forms and more but it's much simpler than that here. (US and Canada is my major business countries.)

It's all about relationships. If you don't build that relationship, you may have no trust.

As to getting product and such, it's usually pretty simple. You set up your account with the vendor (specifics are specific to each vendor! so again, back on the phone and more work.) Then you set up your sales method (web, phone sales, door to door) as well as get a few samples to take photos of and maybe (bonus points) make a crazy video!
Bob

Collapse -
To have a good relation
by amritasingh / July 20, 2013 5:33 PM PDT
In reply to: Not that.

Relationship plays a important role in business.If u have good relation with company than that company will be no 1 company.
so to establish a partnership with wholesale company one should make a good relationship with that company so, that they can trust you.........

Collapse -
Answer
How do I establish business partnership with wholesale compa
by los5437 / January 3, 2014 7:07 AM PST

Hiya, I do to have a small wholesale business I do it from home, I order products from www.bulk.dollardays.com and they have all the products you can imagine and they sell them buy the case. I sell paper products, toilet paper,trash bags, everyone in my neighborhood loves it. Maybe you can fine your niche.

Good luck!!

Collapse -
Do you sell Spam?
by Dafydd Forum moderator / January 3, 2014 7:12 AM PST

Also, it's an old thread.

Dafydd.

Collapse -
It's pretty old.
by R. Proffitt Forum moderator / January 3, 2014 7:16 AM PST
In reply to: Do you sell Spam?

Closing this old discussion.

Popular Forums
icon
Computer Help 47,885 discussions
icon
Computer Newbies 10,322 discussions
icon
iPhones, iPods, & iPads 3,188 discussions
icon
Security 30,333 discussions
icon
TVs & Home Theaters 20,177 discussions
icon
HDTV Picture Setting 1,932 discussions
icon
Phones 15,713 discussions
icon
Windows 7 6,210 discussions
icon
Networking & Wireless 14,510 discussions

Tech for the school year

Smart tech for smart students

Forget the pencils and notebooks. Gear up your students with these portable and powerful note-taking machines.