Setting up Wholesaler Accounts:
How to Answer those Tough Questions:
BY: Tisha Rogers, Director of Operations, Worldwidebrands
When you’re calling or emailing suppliers to set up accounts for your eBiz, the odds
are stacked against you. Many wholesalers see home-based businesses as a very small
market. Unfortunately, statistics have proved 80-90% of online sellers who set up
wholesaler accounts don’t follow through with them. So naturally, many wholesalers are
reluctant to invest the cost of setting up and maintaining accounts for vendors they
don’t expect to bring them any business.
Q & A Because of this situation, wholesalers are going to ask you questions that you
may not have the right answers for but you can prepare for these questions Being ready
with the answers they’re looking for greatly increases your chances of getting a
positive response.
1. Business Name and Tax ID? Regardless of what anyone tells you, if you want to work
with renewable product sources, you will need to provide these. A wholesaler needs
proof you’re authorized by your state to collect sales tax. If they sell to anyone
without a sales tax ID, they can actually lose their business license, so it’s
imperative you have yours ready when you call. There are a few exceptions to this rule.
If the company is located in a tax exempt state or if the products they are supplying
are non-taxable in their state.
2. Trade and Bank References? Wholesalers are used to extending credit to their
retailers you can order something now, and be invoiced later, after the order has
already shipped. That’s why a supplier will ask for trade references other suppliers
you’ve bought from, and bank references. They’re looking to see that you have a
business bank account, and are in good standing with your bank. They want to run your
credit before they extend credit to you.
Unfortunately, most sellers can’t provide these references initially. The problem is
that getting references requires having an account, and getting an account requires
having references.
If you’re just starting out, tell the account representative you don’t want credit
terms. Let them know you’d like to pay with cash upfront or use a credit card. This
eliminates much of the need for references, and can go a long way towards putting a
wholesaler at ease about giving you an account. After you’ve worked with them for a
while and established a business relationship, you can ask for credit, and they may
become your first trade reference.
3. How Long Have You Been In Business? If you’re a brand new business, tell them! Some
suppliers will work with new businesses; some won’t you just have to take your chances.
Never lie to a wholesaler not only will you lose your account when they find out, but
you’ll ruin your reputation. You might also find yourself trying to sell products you
can’t get fulfilled.
4. Do You Have a Physical Location? Some wholesalers want to see a picture of your
brick-and-mortar storefront. Typically, this is because they have physical sales
territories they’re protecting, or they’re abiding by the dictates of their
manufacturer. Whatever the reason, the bottom line is they don’t want their products on
the internet. If they insist you have a material storefront, move on to the next
supplier.
You’re not going to get a Yes from every company you contact, but you’ll have better
success and get a lot further by being prepared when you phone. If you understand what
they want, you’ve got a better shot at getting an account.
NOTE:
For all the Month of April eBusiness Workshops being held at Worldwide Brands
by Chris Malta.
You can still attend, Just Register at the link below:
eBiz Workshops
Worldwide Brands Wholesale Product Sourcing
Private eBusiness Forum Surviving Ecommerce
Providing The Tools You Need to Help People Succeed,
and improve there lives. while along the way
Earning Income for your Business & yourself,
there is no better way to make a living.
Innovative Merchant Solutions, an Intuit company & Worldwide Brands
present: Free QuickBooks Offer Chris Malta and Robin Cowie of
Worldwide Brands have spent years researching better and better ways
to provide merchant accounts to online retailers just like you who
want to make money selling online. Innovative Merchant Solutions, an
Intuit Company, and Worldwide Brands have teamed up to bring you one
of the best and most cost effective payment services available.
Here’s a great video that helps explain the necessity of having a
merchant or Wholesaler account.
Watch the Video to learn more about How to Get a Free Copy of
QuickBooks with a Merchant Account setup.
Sign Up For Worldwide Brands Now!
Worldwide Brands, Inc.
2250 Lucien Way
STE 250
Maitland
Florida 32751
