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How Do I Decide If A Website Is A Real Wholesale Site?

Jena asks, “I’ve heard there are many fake wholesale sites online. What do I look for on a website to determine if they are a real wholesaler or manufacturer?”

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Great question. A lot of people have been screwed by these fake wholesale sites. Here’s a few easy ways to tell if a site is real.

  1. Real wholesale sites want sales tax license information. They don’t want to deal with people who aren’t businesses and use this to weed out people.
  2. Real wholesale sites don’t charge membership fees. They might require you to create a free account, but they won’t charge you to buy items from them.
  3. Real wholesale sites won’t sell you single items. If the site is willing to break open a case or carton it’s probably not a wholesale site. Some manufacturer websites will sell single items, but they’ll require additional information from you like sales tax licenses, proof of a business location etc. . . Basically, the manufacturers set up hurdles to prevent retail shoppers from buying items at a discount.
  4. Real wholesale sites don’t charge sales tax. Only retail buyers need to pay sales tax, so this is a big clue.
  5. Real wholesale sites have prices lower than retail sites. In many industries, wholesale prices are about 60% of retail. The percentage is different depending on industry, but if you see a site offering something for $10 each in case lots, and see the same items sold individually elsewhere for $11 the site is probably not a real wholesaler.

The interview I did with Scott Prock on Finding Wholesale Products has more information on this topic.

Here’s a list of articles on about Finding eBay Products

Did this answer your question? If not, try looking at the questions and answers within the Finding Products, General category, or do a search for other questions.
If you are unable to find an answer to your question, send me an email, and I will answer it.

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