Questions to Ask Wholesalers
Questions for a shop owner or online seller opening an account with a wholesale supplier, covering whether they are authorized to sell what they list, minimums and price breaks, who else in your area carries the line, lead times and freight, what happens when a shipment is short or damaged, and the paperwork marketplaces ask for.
20 questions, each with the reason to ask it · includes a conversation guide
The questions
Open any question to see why it works.
- 1
Are you the manufacturer, the authorized distributor, or a reseller buying from someone else?
Each layer adds cost and distance from the brand. A reseller two steps down cannot get you replacement parts, warranty support, or the letter of authorization marketplaces ask for, and their stock position changes without warning.
- 2
Which brands are you authorized to sell, and can the brand confirm that?
Ask for it in writing on their letterhead with a contact at the brand. Unauthorized supply is the most common reason a seller ends up with legitimate goods they are not allowed to list, and the brand will confirm in a short email.
- 3
What is your minimum order, and is it per order or per item?
A low order minimum with a high per-item minimum is a different business than it appears. It decides whether you can carry twelve products in small depth or four products deep, which is the main constraint on a new retail range.
- 4
What are the price breaks, and at what quantities do they start?
Ask for the full schedule rather than the price at your expected volume. The gap between the first and second tier tells you what scale this supplier is really built for, and whether you will ever compete with the buyers above you.
- 5
Do you have a minimum advertised price policy, and do you enforce it?
A policy that exists on paper and is never enforced is worse than none, because you will be undercut by sellers ignoring it. Ask how many accounts they have removed for breaking it in the past year.
- 6
Do you sell direct to consumers yourselves, and on which marketplaces?
If your supplier also sells retail under another name, you are competing with your own cost base. Check the marketplace listings for the brand before you order and see whose name is on the buy box.
- 7
Who else near me carries this line, and is any territory or channel protection available?
For a physical shop this decides whether the range is worth carrying at all. Even without exclusivity, a supplier who will tell you honestly which nearby accounts exist is one who thinks about their dealers rather than only their volume.
- 8
What payment terms do you offer a new account, and what does it take to get terms later?
First orders are usually prepaid. What matters is the path to net terms: how many orders, what credit references, what trade insurance. Terms are effectively free working capital and they are the difference between growing and stalling.
- 9
What is the lead time on a first order, and on a reorder?
These are often very different, because a first order may go through account setup and credit checks. Ask what the lead time was in practice last quarter, not what the target is, and ask what it becomes in your busy season.
- 10
Where do the goods ship from, and who pays freight?
Freight can undo a good unit price, especially on anything bulky or heavy. Ask for landed cost on a realistic order, including any free freight threshold, and ask whether stock is held domestically or brought in per order.
- 11
If a shipment arrives short or damaged, what is the process and who pays?
You want a claim window in days, a named contact, and to know whether they replace or credit. Suppliers who require you to claim against the carrier rather than handling it themselves are passing you a cost you cannot recover.
- 12
What is your policy on defective goods and returns from my customers?
A retailer absorbing every faulty unit loses the margin on several sales to fix one. Ask what percentage they expect to be defective, whether there is a defect allowance, and how long after delivery you can raise it.
- 13
Can I buy a sample or a small starter order before committing?
Photographs hide finish, weight and packaging quality. A supplier who will not sell a sample at any price is either not set up for accounts of your size or does not want the product inspected before a full order.
- 14
How are the items packaged, and do they carry retail barcodes?
Missing UPC or EAN codes mean you label everything by hand, and polybagged items may need repackaging before they can be shipped to a fulfillment center. Ask for a photo of the individual unit as it arrives, not the master carton.
- 15
What compliance documentation can you supply?
Test reports, safety certificates, ingredient or material declarations, and country of origin. This matters for anything electrical, anything for children, and anything applied to skin or eaten, and it is usually needed by your insurer as well as by regulators.
- 16
Can you provide invoices suitable for marketplace approval?
Marketplaces that restrict a brand typically want recent invoices showing the supplier's full details and a set quantity. Some wholesalers will not issue documents naming their brand suppliers, which quietly rules out that sales channel for you.
- 17
How often are items out of stock, and how do you handle backorders?
Ask what proportion of a typical order ships complete. A supplier who splits shipments frequently either charges you freight twice or leaves your listings empty, and neither shows up in the price list.
- 18
How do you handle discontinued lines and end-of-season stock?
You need warning before a product you have built listings around disappears. Ask how much notice dealers get, whether final buys are offered, and whether clearance stock is dumped into the market at prices you cannot match.
- 19
Who is my contact, and how do I place and track a reorder?
A named person who answers within a day is worth a few percent on the unit price. Ask how orders are placed, whether there is a portal with live stock levels, and who covers when your contact is away.
- 20
Can I speak to two retailers who have bought from you for at least a year?
Existing customers will tell you about the shipping accuracy and the claims process, which is exactly what a sales conversation will not. A supplier who cannot produce two references for a line they claim is popular has told you something.
Opening an account with a wholesale supplier
Practical guidance for the conversation itself.
Checking that a wholesaler is what it claims
Checking that a wholesaler is what it claims
- Real wholesalers usually ask you for something first: a resale certificate, a business registration, or a trading history. Suppliers who sell to anyone with a card are generally selling at retail with a discount.
- Look up the company registration and how long it has existed, and check that the address is a warehouse rather than a mailbox.
- Email the brand directly and ask whether the company is an authorized distributor. Brands answer this question routinely.
- Be careful with directories that charge for access to supplier lists. The contact details in them are frequently public, out of date, or middlemen.
- Ask for a bank reference and pay by a method with recourse on the first order. A supplier insisting on a wire transfer for a first order deserves more checking, not less.
- Compare their price list against the product's typical retail price. If the wholesale price leaves no workable margin, they are further down the chain than they say.
Terms that matter more than the unit price
Terms that matter more than the unit price
Work in landed cost, always
Unit price plus freight, duty, any brokerage, and the labor to repackage. Two suppliers quoting the same per unit figure can differ by a quarter once the pallet arrives, and the cheaper list price often loses.
Buy narrow and deep on a first order
Fewer products in real quantity tells you what actually sells and keeps you under the minimums that matter. A wide first order spreads your cash across items you cannot reorder fast enough to learn from.
Get the claims process before you need it
Ask for the claim window and the contact in writing at account setup. The first damaged pallet is a bad moment to discover the window was five days and you found out on day nine.
Do not build a business on one supplier
Single sourcing is fine until a container is late or an account is closed. Find a second source for your best sellers before you need it, even at a slightly worse price.
Warning signs
Warning signs
- No physical address, no landline, and a contact who only answers on a messaging app.
- Will not name the brands they are authorized for, or will not put it in writing.
- Prices well below every other source for a controlled brand, with no explanation of where the stock came from.
- Pressure to place a large first order to secure a price that expires this week.
- No willingness to sell a sample, and no references from existing accounts.
- Vague answers about compliance documents for products where those documents are required.