How to choose a reliable online wholesaler for your e-commerce business?

Definition and role of an online wholesaler

An online wholesaler is a company that buys products in large quantities from producers or manufacturers for resale then retailed at a lower price than retailers. In this way, the online wholesaler acts as an intermediary between the manufacturer and a retailer.

Its business model is based on economies of scale achieved through bulk purchasing, enabling it to negotiate reduced prices.

The online wholesaler differs from other types of suppliers in a number of ways:

• Sales volume. The online wholesaler buys in large quantities and supplies mainly to companies who then resell to end consumers.

The classic supplier can supply both companies and individuals. What's more, they don't specialize in wholesale.

• Attractive prices . Online wholesalers buy in batches, so they can offer lower prices than distributors or retailers.

• Less flexibility in order quantities . Online wholesalers generally require minimum orders.

The advantages of working with an online wholesaler

An online wholesaler offers several advantages:

Access to reduced prices for bulk purchases

Wholesalers prices that are generally lower than those of other suppliers while allowing you to order large quantities.

They have a wide range of products available

Online wholesalers offer access to a wide variety of products, from all over the world. Alibaba, for example, has several million references.

They enable retailers to diversify their catalogs and offer imported products without having to deal with logistical constraints or various suppliers.

By working with online wholesalers, retailers can diversify their offerings.

Simplified inventory management

By working with online wholesalers, you can reduce your inventory management costs . With dropshipping, for example, you don't need to manage your stock, as the supplier takes care of delivering the orders to the end customer.

Top 7 online wholesalers

Here is our selection of the 7 best online wholesalers:

Alibaba

Alibaba is the world's largest B2B commerce platform. It brings together suppliers and retailers from all over the world with a wide range of products.

The platform offers a huge database of online wholesalers in a wide range of sectors . What's more, it offers advanced features that allow you to filter suppliers by criteria such as country of origin, delivery times, minimum order volume, etc. In addition, you can view user ratings for each supplier.

So you can easily compare wholesalers before making your final choice.

AliExpress

AliExpress is an Alibaba subsidiary for B2C transactions . Designed for small businesses and individuals This is a platform dedicated to retail sales at competitive prices.

AliExpress also offers a wide variety of products and offers buyer protection features . Suitable for dropshipping, AliExpress offers international shipping options to almost anywhere in the world at reduced costs.

Made-in-China

Made-in-China est a good alternative to Alibaba to find Chinese wholesalers. It also offers a wide selection of manufactured products in a variety of sectors at attractive prices.

It has product customization options These products are ideal for companies wishing to launch their own brand.

DHgate

Founded in 2004 DHGate is another B2B platform specializing in the sale of Chinese products . It is suitable for small and medium-sized companies looking to buy in small quantities.

Like any other platform, it's not without its unreliable sellers. However, it has a buyer protection policy allowing buyers to request a refund in the event of product non-conformity . Don't forget to check the seller's entrepreneurial profile and ask for samples before you buy.

Do

Faire is a platform that focuses on small artisan brands and independent stores . It's perfect for online retailers who want to diversify their offering with unique, specialized, handmade or original products .

Unlike DHGate or Alibaba, Faire mainly lists North American and European manufacturers. Moreover, the products on offer are also of a higher range than those offered by the two Chinese platforms.

Faire offers a number of interesting features, including the option of paying 60 days after delivery or free delivery when you place your first order with a new supplier.

Duck stores

Created in 2019, Ankorstore is a European marketplace for independent retailers, offering local and artisanal products at competitive prices .

Like Faire, it focuses mainly on on unique, high-end products .

The range of products on offer is not as wide as in Alibaba, for example, and revolves around the following categories fashion, home furnishings, artisanal food products and cosmetics .

Ankorstore is especially suited for retailers looking for unique or trendy products in small series.

Bigbuy

Founded in 2012 Bigbuy is a European wholesaler specifically dedicated to dropshipping and wholesaling . This makes it ideal for companies looking to avoid inventory management.

Based in Spain, The platform offers a wide choice of products in a variety of categories, optimized for e-commerce.

How can I identify a reliable online wholesaler?

Since transactions take place online, scams can happen.

• Undelivered products

• Delivery delays

• Non-conforming products

• Unreliable vendors

• Etc.

These are just a few examples of the risks you can encounter on even the biggest platforms.

Here are our tips for identifying a reliable online wholesaler:

Analyze customer reviews and satisfaction ratings

Most matchmaking platforms offer rate salespeople or record positive or negative comments . These are valuable and reliable resources for assessing a supplier's merits, as they are provided by the users themselves.

You can also check on classic rating sites such as Google Review or Trustpilot, for example, or on business forums. . On Alibaba, for example, some sellers wear un badge Gold Supplier ou Verified Supplier .

That way, you'll be taking fewer risks when dealing with them. Also remember to check the age of the seller's profile on the platform . Priority should be given to profiles with a certain length of service.

Check the transparency of general terms and conditions of sale

The general terms and conditions of sale are a set of rules established by a seller and defining the terms and conditions of sale as well as the rights and obligations of each party.

In particular, the terms and conditions of sale must set out rules relating to payment terms, guarantees, delivery times and terms of payment. You must therefore analyze these rules in depth before working with a wholesaler .

They thus establish a clear legal framework for future transactions with the seller. So, in the event of a dispute, the buyer will have to refer to them to claim his rights.

Test product samples before you buy

This is the rule not to be ignored when dealing with a supplier for the first time. It's the only way to be sure that the product delivered is exactly as shown in the images, and that it meets your needs.

So you can check quality, appearance, functionality and specifications . On the other hand, it's a way to assess compliance with delivery deadlines .

This is an essential step before placing a large order.

Mistakes to avoid when choosing an online wholesaler

Mistakes in the choice of suppliers have a direct impact on your commercial relations with future customers and on your profitability. To choose your online wholesaler wisely, don't make the following mistakes:

Do not read delivery conditions carefully

On-time delivery is an essential component of online business. It guarantees both customer satisfaction and your company's image. To meet your own obligations, you need to work with a supplier who respects delivery deadlines.

So think about check this aspect before choosing a supplier . You must check whether the delivery conditions suit you. This is all the more important if you are dealing with foreign suppliers.

And don't forget to check feedback from former customers to find out if there's a history of late deliveries.

Ignore clauses concerning returns and refunds

A reliable wholesaler must have a clear returns and refunds policy in its general terms and conditions of sale. It's a guarantee of seriousness, because the rules are clear from the outset.

This means you can easily invoke them in the event of non-compliance. So remember to check that these rules are clearly specified in your General Terms and Conditions, to protect yourself in the future.

Hero finances your stock purchases

Hero is a neobank aimed at B2B customers, including very small businesses, SMEs and start-ups. Its mission is to preserve their cash flow by offering immediate payment of their invoices.

Pay for your stock purchases via Hero and benefit from payment facilities such as deferred payment (payment after 60 or 90 days) or instalments (in 3 or 4 instalments).

In a nutshell, working with an online wholesaler offers real advantages, such as simple inventory management and competitive pricing. But it's important to choose wisely, as there are many risks involved in online transactions.

Finance your inventory purchases with Hero and benefit from easy payment terms.