Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia

If you are reading this, then I will assume that you have made the decision to start your own business. Congratulations!

Finding a wholesaler can be tricky. There are many different types of suppliers out there with just as many con artists that will pose as a wholesaler in an attempt to steal your money. So my first bit of advice is - DO YOUR HOMEWORK. Research your potential supplier.

Do they have a D&B Number? Are they listed in the Yellow Pages? Do they have a professional looking website? Do they have offices? Do they offer secure payment methods? These questions and more need to be answered before moving forward with any potential supplier.

Now let’s take a look at the different types of suppliers that are out there:

1. Traditional wholesalers and distributors. These companies are relatively easy to find. They are usually listed in the telephone directories and some even have an online presence.

A good example would be a company like Ingram Micro. They are one of the largest consumer electronics wholesalers in the world. They carry popular brands such as Apple, Sony, and Microsoft and provide wholesale products as well as logistics and distribution management.

But don’t run off and apply for an account just yet!! These types of companies cater to established retailers such as Wal-Mart, Target, Sears, Best Buy, and Circuit City. They usually want the retailer to purchase in larger quantities, and unless you have an established and positive relationship with them, the pricing on popular items for a new entrepreneur is not all that great.

You may wonder why this is so, since they are the distributors that move the most product. The reason they want to sell to Target and Wal-Mart is because those retailers can charge the manufacturer’s suggested retail price for the products. As a competitor to Target, you must sell on Ebay or on your own website for a cheaper price (otherwise why would anyone buy from you instead of an established company like Target?)

That being said however, you can find smaller traditional wholesalers that operate the same way but on a smaller scale.

An example of this type of company would be HL Dalis . They are a wholesaler that deals with smaller-scale resellers and retailers. There are many smaller players like this, though they are harder to find.

In order to find these companies, it is sometimes best to visit tradeshows and read trade magazines. Here a handy tip: If you can’t visit trade shows, call the trade show organizer and ask if they can send you a list of exhibitors.

If they will provide this, you will have a list of legitimate suppliers for whatever products interest you.

2. Brokers. These are companies (or sometimes individuals) that can procure goods for you in exchange for a markup or commission.

Most brokers do not carry inventory. They use your money to buy from their supplier and then pass the goods on to you.

Frequently, problems arise when your broker passes money on to his supplier without using a secure payment method.

Dealing with a broker can be extremely risky. So why do I mention them? Because these firms have access to the distribution networks that deal in gray market imports.

What are gray market imports? These are products that are intended for sale in countries such as India, but have found their way onto the North American or European markets.

Why would anyone sell these items? Because there is profit to be made! Consumer electronics and fashion clothing (two of the most popular gray market imports) vary little from country to country. But due to currency disparities and cost-of-living differences, it is relatively cheaper to buy those products from the foreign country, import them, and then resell them at much higher prices in the U.S. or the UK.

Problems arise with brokers for two reasons.

First, brokers must stay small and in the shadows (so to speak) - they do not want to call attention to themselves because the product manufacturers frown on gray importing.

Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia a

A good example would be a company like Ingram Micro. They are one of the largest consumer electronics wholesalers in the world. They carry popular brands such as Apple, Sony, and Microsoft and provide wholesale products as well as logistics and distribution management.

But don’t run off and apply for an account just yet!! These types of companies cater to established retailers such as Wal-Mart, Target, Sears, Best Buy, and Circuit City. They usually want the retailer to purchase in larger quantities, and unless you have an established and positive relationship with them, the pricing on popular items for a new entrepreneur is not all that great.

You may wonder why this is so, since they are the distributors that move the most product. The reason they want to sell to Target and Wal-Mart is because those retailers can charge the manufacturer’s suggested retail price for the products. As a competitor to Target, you must sell on Ebay or on your own website for a cheaper price (otherwise why would anyone buy from you instead of an established company like Target?)

That being said however, you can find smaller traditional wholesalers that operate the same way but on a smaller scale.

An example of this type of company would be HL Dalis . They are a wholesaler that deals with smaller-scale resellers and retailers. There are many smaller players like this, though they are harder to find.

In order to find these companies, it is sometimes best to visit tradeshows and read trade magazines. Here a handy tip: If you can’t visit trade shows, call the trade show organizer and ask if they can send you a list of exhibitors.

If they will provide this, you will have a list of legitimate suppliers for whatever products interest you.

2. Brokers. These are companies (or sometimes individuals) that can procure goods for you in exchange for a markup or commission.

Most brokers do not carry inventory. They use your money to buy from their supplier and then pass the goods on to you.

Frequently, problems arise when your broker passes money on to his supplier without using a secure payment method.

Dealing with a broker can be extremely risky. So why do I mention them? Because these firms have access to the distribution networks that deal in gray market imports.

What are gray market imports? These are products that are intended for sale in countries such as India, but have found their way onto the North American or European markets.

Why would anyone sell these items? Because there is profit to be made! Consumer electronics and fashion clothing (two of the most popular gray market imports) vary little from country to country. But due to currency disparities and cost-of-living differences, it is relatively cheaper to buy those products from the foreign country, import them, and then resell them at much higher prices in the U.S. or the UK.

Problems arise with brokers for two reasons.

First, brokers must stay small and in the shadows (so to speak) - they do not want to call attention to themselves because the product manufacturers frown on gray importing.

Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia

That being said however, you can find smaller traditional wholesalers that operate the same way but on a smaller scale.

An example of this type of company would be HL Dalis . They are a wholesaler that deals with smaller-scale resellers and retailers. There are many smaller players like this, though they are harder to find.

In order to find these companies, it is sometimes best to visit tradeshows and read trade magazines. Here a handy tip: If you can’t visit trade shows, call the trade show organizer and ask if they can send you a list of exhibitors.

If they will provide this, you will have a list of legitimate suppliers for whatever products interest you.

2. Brokers. These are companies (or sometimes individuals) that can procure goods for you in exchange for a markup or commission.

Most brokers do not carry inventory. They use your money to buy from their supplier and then pass the goods on to you.

Frequently, problems arise when your broker passes money on to his supplier without using a secure payment method.

Dealing with a broker can be extremely risky. So why do I mention them? Because these firms have access to the distribution networks that deal in gray market imports.

What are gray market imports? These are products that are intended for sale in countries such as India, but have found their way onto the North American or European markets.

Why would anyone sell these items? Because there is profit to be made! Consumer electronics and fashion clothing (two of the most popular gray market imports) vary little from country to country. But due to currency disparities and cost-of-living differences, it is relatively cheaper to buy those products from the foreign country, import them, and then resell them at much higher prices in the U.S. or the UK.

Problems arise with brokers for two reasons.

First, brokers must stay small and in the shadows (so to speak) - they do not want to call attention to themselves because the product manufacturers frown on gray importing.

Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia

Frequently, problems arise when your broker passes money on to his supplier without using a secure payment method.

Dealing with a broker can be extremely risky. So why do I mention them? Because these firms have access to the distribution networks that deal in gray market imports.

What are gray market imports? These are products that are intended for sale in countries such as India, but have found their way onto the North American or European markets.

Why would anyone sell these items? Because there is profit to be made! Consumer electronics and fashion clothing (two of the most popular gray market imports) vary little from country to country. But due to currency disparities and cost-of-living differences, it is relatively cheaper to buy those products from the foreign country, import them, and then resell them at much higher prices in the U.S. or the UK.

Problems arise with brokers for two reasons.

First, brokers must stay small and in the shadows (so to speak) - they do not want to call attention to themselves because the product manufacturers frown on gray importing.

Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia

Secondly, because these are small players, they do not have access to large amounts of capital in order to carry stock.

Therefore, unless you are at the top of the broker chain, you will be giving your money to someone who will be giving it to someone else, who in turn, may be giving it to someone else who has the goods.

As you can see, there are plenty of opportunities for problems to arise, funds to go missing, and stock to never show up.

A word of advice: NEVER BUY FROM A BROKER UNLESS YOU CAN PAY VIA A SECURE PAYMENT METHOD LIKE A CREDIT CARD OR ESCROW SERVICE.

3. Asian distributors. I put these suppliers in a different category because dealing with them requires a separate set of ground rules.

Because they are half way around the world (for most of us), determining legitimacy is much more difficult. If I had to venture a guess, I would say that there are as many scammers in Asia as legitimate wholesalers. The fact remains, however, that much of the consumer goods produced in the world are produced in Asian factories, therefore there are many great Asian sourcing partners available.

Problems arise when you come to learn that many of these suppliers do not accept any form of secure payment methods. They don’t accept credit cards or escrow, and many require bank transfers as the only payment method.

This requires a huge leap of faith on the buyer’s part. However, if you do your research, you should feel fairly confident that your Asian supplier will not cheat you.

Here are some general tips for dealing with suppliers:

1. Legitimate suppliers will usually not initiate contact with you through message boards, emails, or via instant messenger. Be wary of anyone that contacts you first.

2. When dealing with a supplier you are not 100% confident about, only use secure payment methods such as credit cards, Escrow.com, or Fly & Buy.

3. Unless your supplier is well known, perform due diligence to verify their legitimacy. Do they have a Dunn & Bradstreet number? Are they listed in the Yellow Pages? Can they provide you will verifiable references?

4. Most legitimate wholesalers require you to establish an account and have a Sales Tax License or a Tax ID. Be wary of the vendor that does not require these things.

5. If they have a website, ask yourself if it seems professional. Check out WhoIs.Net to see who owns the site and how long they've been around.

These are just some general tips on how to go about checking out a potential supplier. With some diligent research, you will find the perfect wholesaler to start your online business!

Good luck in your search!