Ever have visions of buying things cheaply from a wholesale company and making a fortune here on Ebay? Gee, you're saying, who hasn't?
Have you ever really thought of the pros and cons, the how to's and the what is neededs of this? Well, hopefully this guide will help clear some of it up for you.
What Do You Need?
- Most reputable wholesale distributers will require you to have a tax ID number. You can apply for this with the government in your area. Basically it is a resale license. This means you need to pay your taxes at the end of the year! (You should always claim Ebay income anyway)
- Some companies will require a contract or application to be filled out. This means a credit card on file with the company as well.
- You may also need to make a minimum purchase. Check this out closely. Some require you to purchase in pallet lots, or spend upwards of $1000.
Some Pros:
- Cheaper Per Product Cost
- Once You've Found a supplier, you know you will have product
- Ease of ordering
Some Cons:
- The reputable wholesalers are sometimes hard to find
- Do not be taken in by e-books with distributers listed. Most of these are not in operation any longer, require huge minimum orders, or have no Better Business Bureau endorsement. Still many more sell items more suitable for a dollar store.
- If you order a product and it's not a great seller, you may be stuck with hundreds more!
- Many require a large up front out of pocket expense. Can you afford that? Make sure, as most of us are starting out with no upfront funding.
Whatever you choose, make sure you do your research! A few phone calls to the company, a bit of Googling, and a check with your own common sense can all go a long way!
Guide created: 10/17/06 (updated 08/01/08)


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