Finding wholesale supplier Guide

Step-by-step guide: How to find a good wholesale supplier to work with (for an eBay business)

Step 1: Get clear on what kind of wholesale supplier you need

Before you search, define these 5 items (quick notes are fine):

  • Product category (ex: pet supplies, tools, beauty, auto parts)

  • Condition: new only / new + returns / refurbished

  • Price point & target margin (ex: need 30% after fees/shipping)

  • Fulfillment: you ship / supplier ships (dropship) / prep center

  • Minimums: can you do cases/pallets or only small orders?

This prevents you from chasing suppliers that can’t fit your model.

Step 2: Make sure your business basics are ready (so suppliers take you seriously)

Many legitimate wholesalers require some combination of:

  • Business entity info (sole prop/LLC)

  • EIN (often requested; it’s free through the IRS) IRS+1

  • Resale certificate/sales tax permit (varies by state)

  • Basic business profile: website, marketplace links, business email

Tip: Watch for scam “helper” sites charging big fees for things that are free from the government—stick to official .gov pages. The Washington Post+1

Step 3: Find suppliers in the most reliable places first

Use this order (highest trust → lowest trust):

  1. Brands/manufacturers directly

  • Go to the brand’s website → look for “Authorized Distributors / Dealers / Wholesale”

  • Best for: authenticity, stable supply, fewer surprises

  1. Authorized distributors

  • Ask: “Are you an authorized distributor for X brand?” and request proof.

  1. Trade shows & industry associations

  • Great for meeting vetted suppliers and comparing terms.

  1. Local wholesalers / liquidation warehouses (if you’re okay with returns or mixed lots)

Step 4: Confirm your plan matches eBay rules (especially if the supplier ships)

If you plan to have the supplier ship directly to your eBay customer:

  • eBay allows dropshipping when you fulfill orders directly from a wholesale supplier, but you’re still responsible for on-time delivery and customer satisfaction. eBay

  • Listing on eBay and then buying from another retailer/marketplace to ship to your customer is not allowed. eBay

This matters because your supplier choice can affect account health.

Step 5: Do a quick legitimacy check (10 minutes)

For any supplier you’re considering, verify:

  • Real business identity: full company name, physical address, phone, domain

  • Clear terms: MOQ, pricing tiers, shipping timelines, return policy, damaged shipment policy

  • Professional payment options (credit card/terms) and clear invoices

  • No “too good to be true” pricing on branded goods

Also scan for scam patterns—scammers often create urgency, impersonate trusted entities, or push unusual payment methods. Federal Trade Commission+1

Step 6: Ask the 12 questions that reveal if they’re “good”

Copy/paste these when you call/email:

Inventory & pricing

  1. What are your MOQs and price breaks?

  2. Are products new, customer returns, refurbished, shelf pulls, or mixed?

  3. Can you provide a current price list and update frequency?

Authenticity & authorization
4. Are you an authorized distributor for these brands? Can you provide documentation?
5. Do you provide invoices that support authenticity claims?

Shipping
6. Typical handling time and shipping carriers?
7. Do you offer blind shipping (if they ship to your customer)?
8. How do you handle lost/damaged packages?

Returns & defects
9. What is your defect rate (typical) and how do claims work?
10. Who pays return shipping on defects?

Operational fit
11. Do you support EDI/API, live inventory feeds, or CSV catalogs?
12. Can I start with a small test order?

Good suppliers answer clearly and in writing.

Step 7: Place a small test order (don’t skip this)

Start with a “proof order” (even if you plan to scale):

  • 5–20 units (or the smallest MOQ)

  • Mix of bestsellers + a couple risk items

  • Track: actual landed cost, ship speed, packaging quality, defect rate, ease of returns

If they resist a small test or refuse written terms, treat that as a warning sign.

Step 8: Run the “Landed Cost + eBay Fee” math before you commit

For 3 sample items, calculate:

  • Unit cost + shipping to you (or to customer) + packaging + returns allowance

  • eBay fees + payment processing

  • Your target profit

If margins only work in “perfect conditions,” it’s not a good supplier relationship.

Step 9: Start a supplier file (so you don’t get burned later)

Keep a simple doc with:

  • Contact name + phone

  • Price list version date

  • Written policies (returns/defects/shipping)

  • Screenshots/PDFs of terms

  • Invoices from test orders

This helps with consistency, disputes, and scaling.

Step 10: Protect yourself as you scale

As volume grows:

  • Ask for Net terms only after a solid track record

  • Use payment methods with protections

  • Train yourself to spot business scams and report fraud if needed Federal Trade Commission+1

Quick “good supplier” checklist (green flags)

  • Transparent terms + real invoices

  • Reasonable MOQ and test order allowed

  • Consistent shipping timelines

  • Clear defect/returns process

  • Willing to confirm authorization/authenticity for branded goods

  • Communication is prompt and professional