How to vet wholesale suppliers and spot the red flags

A good supplier is the foundation of a wholesale business. Check these things before you send a first payment.

Prefer brand owners and authorised distributors

Amazon and brands care about where your stock comes from. Buying from the brand itself or an authorised distributor gives you the strongest position if a listing is questioned. Ask suppliers directly whether they are authorised to sell the brand and keep their answer.

Verify the business

• Check that the company is registered and has a real address and phone number.
• Look for a business e-mail on its own domain rather than a free webmail address.
• Search for reviews from other resellers, and ask for trade references.

Ask for paperwork up front

Request a resale or trade account application, and keep every invoice. If Amazon asks for proof that your stock is genuine, invoices from the supplier showing the brand and quantities are what they need. The invoice should be recent and list the brand and ASIN-level items you purchased.

Red flags

• Prices far below every other source, with no explanation.
• Pressure to pay quickly or by an unusual method.
• No invoices, or invoices that do not carry the supplier name and address.
• Reluctance to answer simple questions about where the stock comes from.

If more than one of these appears, walk away. A cheap order is not worth an account suspension.

Start small and measure

Place a modest first order, check the goods on arrival and track how many units sell and at what profit. Keep the results per supplier; Wholesale Analyzer gives you a supplier comparison so you can see which price lists consistently produce the best products.