You've decided to launch a retail business, but now you need to find a quality distributor who can supply you with the bulk products you need at the right price. What questions should you ask a wholesale distributor before you commit to doing business together?

1. Get references: The most important thing to find out about a prospective wholesale distributor is whether they have an established and positive reputation among retailers. You will be relying on this distributor to deliver your goods in a timely fashion, in the condition you expect, at a price that is fair. And if you do run into any trouble with your order, you want to be confident that the distributor is going to be responsive to your feedback. Look into how long the distributor has been in business and what kind of track record it has with its customers. If the distributor won't supply you with references, check with the Better Business Bureau or try the forums on auction sites like eBay.
2. Compare pricing: Make sure to compare the prices you are being offered by one distributor against the prices of other distributors. Of course, you never want to pay more than you have to for bulk merchandise, but keep in mind that you should be wary of prices that seem extraordinarily low. Sometimes wholesale distributors may offer unusually inexpensive pricing because the quality of their products is below standard. Make sure you are clear on what you are getting for your money.
3. Verify product quality: If you've taken the trouble to complete the first two steps, you likely have narrowed down your choice of distributors to a small field of reliable and fair companies. But product quality is so essential to satisfying your own customers that it is probably worth asking for a free sample from the distributor(s) you are considering before you place a bulk order. This is especially important if you are using a dropship distributor that will be delivering merchandise you sell directly to your customers on your behalf.
4. Understand payment terms: Different distributors will have different procedures when it comes to payment. Some will require that you pay them upfront for every sale. Others will allow you to pay on a monthly or quarterly basis, which will save you on payment transaction costs. Finally, you will want to find out what kinds of payment the distributor accepts, such as credit card or PayPal.

Choosing your wholesale distributor(s) carefully will help make running your merchandise retail business easier. To help you get started in your search, check out product sourcing websites such as ADSSourceBook, which feature searchable listings of thousands of distributors and the wholesale products they offer.

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