selling to retailer and my source

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United States United States
tombolinos
Kudos: 16
Joined: Jun 1, 2017
selling to retailer and my source
7 Jun 2017
Hi there community,

Im wondering..... if I buy a product from a Chinese wholesaler and sell it to a small/medium US retailer (no big chain stores)....is this is rookie paranoid thinking:

"What if the retailer decides to look around online for my source and discover they can get it cheaper?"

Thoughts?

Thank you

Seb
Supplier
Lancaster United Kingdom
Cloud Commerce Pro
Kudos: 111
Joined: Jul 22, 2016
Re: selling to retailer and my source
8 Jun 2017
@tombolinos

When buying from a Chinese Wholesaler, in general, I would say there’s not a lot you can do if your customer goes onto find and source the product for themselves.

However, as the function of the “Wholesale Intermediary”, for want of a better word. You should show yourself to have more specialised knowledge about the products you are supplying, and allow the retailers to focus on their business. Which should hopefully put them off trying the find another supplier.
Max Meadows, VA United States
Jax Music Supply
Kudos: 2,480
Joined: May 25, 2009
Re: selling to retailer and my source
10 Jun 2017
@tombolinos

Definitely not paranoid. Any retailer that isn't already looking at direct sourcing for non-branded merchandise is likely not going to be around long. As others have already said, you have to bring additional things to the table. I buy from wholesalers as well as importing direct.

A lot of branded products I can get from multiple wholesalers. There are several factors that lead me to buy from one wholesaler versus another. Obviously the first is price. This would be total price (price+shipping). A close second is fill rate. If a wholesaler never has the item in stock there is no sense in ordering it. Ordering amounts, wholesaler terms, distance involved, all can play a role in who gets the business for what is the identical product.

An advantage any wholesaler can have over a direct supplier has is they should have it available to send immediately. Retailers do not like to store merchandise long term but hate having to wait months for product. A wholesaler can charge more for the product because they are keeping it in stock and can ship it immediately. Quantities also tend to be smaller than the MOQ of a manufacturer.
Supplier
Guangzhou China
JFBees LLC
Kudos: 33
Joined: Jun 12, 2017
Re: selling to retailer and my source
14 Jun 2017
@tombolinos

Just focus on your brand marketing and ability to lower down the price to keep you competitive, it is normal for them to source online, although the price is cheap, the final price wont be cheap if they only need low quantity and massive time on the complicated procedures they may give up at the end if you provide good quality with good service.

plentymarkets
Sellware
Cloud Commerce Pro
xSellco 2