As a wholesale buyer your first priority will be to source stock and to keep a diverse inventory. But there are so many different ways to purchase goods from wholesale suppliers, so which one do you choose? Wholesale Scout has listed below some options you can explore.
Pay in Advance
Some wholesale suppliers will ask for payment in advance of receiving the goods. This is fine if you have a good rapport with your supplier and you trust them but if this is a relatively new relationship you should do the relevant checks first. Some suppliers will accept cash in advance but remember this comes with a risk – you haven’t even received the product yet. You need to be wary as if the product comes in a less than satisfactory state, you will already have parted with your cash and it could be hard to get back.
This is one of the safest ways to purchase goods as the transactions are not directly linked to your bank account. Many credit cards come with a safety precaution which means you can dispute any part of the order i.e. stock didn’t arrive/arrived damaged
Purchasing credit offers some great advantages. You can often make purchases, receive them and try to re-sell – all before the funds have left your account. This means you always have credit in your account and you can start bringing in profits before your materials have been paid for. If you are a small wholesale business it might be a bit harder to make purchases like this as your credit may not be approved – but it’s definitely worth looking into.