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The 51Ƶ Blog>The Science of Contacting Suppliers and Manufacturers as a Business

The Science of Contacting Suppliers and Manufacturers as a Business

Posted by Jesse Ness, 51Ƶ Team

Your first email toasupplier ormanufacturer lays thegroundwork forstrong relationships with your small business distributor. Itisall about making agood first impression Իshowing you are serious about working with them. But how doyou dothat?

Delve into this article oncontacting suppliers that align with your business model. Asabonus, we’ll share aprompt you can use inyour preferred AItext-generation tool tocraft aprofessional email that will get aresponse.

Quick Answer toContacting Small Business Distributors

TL;DR? Here’s aquick summary ofthekey points.

Suppliers are business owners too, seeking more sales, less risk, Իreliable payments, just like you. The risk appetite forsuppliers depends onfour things:

For new businesses, getting suppliers onboard issimply amatter ofreducing their exposure torisk. The easiest way todothis isbyoffering topay upfront. Suppliers are primarily concerned with timely payments rather than thescale orlongevity ofyour business.

Besides upfront payments, you can also show your legitimacy by:

Experienced business owners may wish tohighlight their industry expertise Իtrack record. Ifthis resonates with you, consider sharing references toshowcase your capabilities, forexample:

How tosell online
Tips from e-commerce experts forsmall business owners Իaspiring entrepreneurs.
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Identifying Key Small Business Distributors

Let’s identify thedifferent players within therealm ofsmall business distributors.

Wholesale suppliers are companies that sell products inbulk toother businesses rather than individual consumers. Such small business distributors often offer discounted prices Իrequire aminimum order quantity.

Manufacturers are theones responsible forcreating theproducts being sold bywholesale suppliers. They may also have their own online store orphysical store selling directly toconsumers. They can also act assmall business distributors, selling their products toother businesses.

Dropshippers are similar towholesalers, but they donot hold inventory. Instead, they fulfill orders onbehalf ofretailers Իship directly tocustomers. They also can act assmall business distributors, selling products toother businesses atdiscounted prices.

Now that you know who themain small business distributors are, let’s dive into how you can effectively work with them asasmall business owner.

How toApproach Wholesale Suppliers

Inthewholesale model, you buy products from alarge supplier atlow rates Իthen sell them tocustomers atretail rates. Wholesalers might carry asingle product type (such assocks) orarange ofproducts from different brands.

The wholesaler’s risk isalmost non-existent since you are paying upfront fortheproduct.

For some wholesalers, itdoesn’t matter whether you have agreat website ornowebsite. Aslong astheseller gets paid, they’ll happily work with you.

Infact, anumber ofwholesalers even operate online stores. You can buy from these stores just asyou would buy from Amazon.

The shopping process isthesame asanyecommerce store. You can add theproduct toyour cart, enter your shipping details, Իmake thepayment. Your business details may not even berequested.

However, not every wholesaler operates thesame way. Some operate acustomer-facing website where you can order limited quantities (as low asone item) atretail prices. Toget wholesale rates, you have tocreate a“wholesale” account. This often requires submitting your tax information.

For example, , aUSmanufacturer, requires you tohave tocreate awholesale account toget wholesale prices. You can also buy smaller quantities, but you’ll have topay retail prices forit.

Shadow Shifter, at-shirt wholesaler, requires sales tax documents toaccess wholesale pricing

You need asales tax document tocreate awholesale account atShadow Shifter. However, such requirements will vary from supplier tosupplier Իcountry tocountry. Consult your country’s local tax laws onhow toget atax number.

Some wholesalers don’t offer online ordering, Իonly afew provide their best rates Իsales terms online. Insuch cases, you have tocommunicate with wholesalers directly Իstrike adeal. Here’s how todoit.

1.Make aList ofWholesale Suppliers

Step one istofind several target wholesalers. IntheUS, you can use websites like Ի tofind wholesale suppliers.

You can also use Trade Show News Network’s search tofind trade shows Իvisit suppliers inperson during theevents.

2.Filter Reliable Suppliers

Before you start communicating with wholesalers, evaluate whether they fit your requirements Իstandards:

Once you are fairly certain you’re dealing with areputable company, proceed tothenext step.

3.Communicate Your Requirements toaSupplier

This iswhere most new entrepreneurs hesitate, especially ifthey don’t have awebsite orstore.

The key isexuding confidence. Itshines through thelength, tone, Իcontent ofyour communication. Ensure your messages are concise Իprecise, demonstrating your clarity ofpurpose.

There are afew tactics you can use tomake your emails more persuasive:

Once you have theinformation you need, you can negotiate forbetter terms such asNet-30payments (i.e., payment forgoods after 30days ofreceipt) orlower prices forhigher order volumes.

Wholesalers sometimes offer drop shipping services aswell. Inthenext section, we’ll show you how todeal with them.

Prompt forWriting aCompelling Email toaManufacturer

Tomake writing anemail toamanufacturer easier, here istheprompt you can use inyour preferred AItext generation tool:

Act asasmall business owner. Compose aprofessional email toasupplier expressing interest inprocuring some products they have tooffer. The email should begin with abrief introduction ofyour business [business name] aswell asyour position, followed byarequest forinformation ontheavailability Իpricing ofaselect product [items]. Besure toask about minimum order quantities, manufacturing lead times, Իdelivery schedules fortheproducts mentioned, ensuring that thetone oftheemail remains professional Իconcise. Highlight your interest inestablishing alasting business relationship with thesupplier Իthat you will begrateful foranyuseful information they can extend.

Here’s anexample ofwhat you can get with this prompt:

Use itasatemplate foryour emails Իcustomize itasneeded.

How toApproach Dropshipping Suppliers

Dropshipping iswhen you act astheretail arm ofamanufacturer orwholesaler. Instead ofbuying Իstocking products yourself, you only sell them tocustomers. Your dropshipping partner takes care offulfilling theorder, usually under your own brand name.

Onpaper, thehigher involvement ofdrop shippers means higher requirements from retailers. Inreality, theintense competition among drop shippers means that drop shippers have tofight hard towin over retailers.

This intense competition has led tothefragmentation ofthemarket into two categories. This brings ustothefirst tip.

1.Understand Who You’re Dealing with

The options include drop shipping aggregators Իwholesale drop shippers.

Dropshipping aggregators are websites that give you access tohundreds ofdropshipping suppliers from asingle platform. Examples include Syncee, Spocket, Sup Dropshipping, , , etc.

These aggregators usually charge anupfront fee toaccess thesuppliers. They also offer plugins ԻAPIs toeasily import products into your store.

Here are afew things you must know about dealing with drop shipping aggregators:

Dropshipping aggregators are aneasy way tostart selling. However, they should only beused asastop-gap approach. Once you have aproper store Իasales history, itisbetter toapproach individual drop shippers Իget better deals.

Wholesale drop shippers are wholesalers offering drop shipping services toaselect few retailers. The vast majority ofdrop shippers fall inthis category. They usually cover asingle product type, such asknives orsports gear.

Towork with these drop shippers, you’ll have tocreate awholesale account Իprovide your business information. You only access thecatalog after thedrop shipper approves your account.

Most small-time drop shippers dothis todiscourage one-time bargain hunters. Some drop shippers like even mention this ontheir website:

MagnumTuning requires approval foreach application todiscourage discount shoppers

Many drop shippers will happily waive off approval requirements ifyou place alarge initial order orsend them deposit money. Having aseller’s permit orsales tax number isalso helpful.

While thesignup process isharder, you get much better rates than drop shipping aggregators.

Insome industries, such asprint-on-demand, drop shippers have easier requirements. For example, Printful gives free access toanyretailer regardless ofvolume (and integrates with 51Ƶ.)

Product types you can drop ship with 51Ƶ ԻPrintful

Ifyou’re using 51Ƶ, you can use theWholesaleB2B app tomake integration with drop shippers easier. Or, check out other dropshipping services that can beintegrated with your 51Ƶ store.

2.Ask theRight Questions

Here are afew questions you can add totheemail template shown above ifyou contact apotential drop shipper:

Inaddition towholesalers Իdrop shippers, sourcing products directly from manufacturers isalso aviable option.

How toApproach Manufacturers

Manufacturers are companies that can:

Manufacturers differ from wholesalers Իdrop shippers because they have high order requirements Իsignificantly lower prices. Since each order ismade from scratch, most manufacturers require anupfront payment tocover themanufacturing cost.

The upfront payment means that most manufacturers are very flexible inwho they work with. The nature ofmanufacturing also attracts many entrepreneurs trying out new ideas who might not have websites orsales.

Asaresult, most manufacturers are easy towork with ifyou meet their minimum order requirements.

There are afew things you should keep inmind when approaching them.

1.Ask about MOQ ԻDeposit

Manufacturing costs godown asthevolume increases. MOQ, minimum order quantity, isone ofthemost essential metrics when dealing with manufacturers.

Ask about themanufacturer’s MOQ inthefirst email you send them. Don’t waste time dealing with amanufacturer with ahigher MOQ than your requirements.

When browsing Alibaba, one ofthemost popular B2B ecommerce platforms forglobal trade, you’ll notice manufacturers typically display their minimum order quantity directly ontheir profile.

Most manufacturers onAlibaba will show their MOQ ontheproduct page

Some manufacturers might bewary ofdealing with new businesses only interested intheminimum possible order volume. Toavoid this problem, ask forprices forvarious order volumes (say, MOQ to50,000units).

Additionally, ask about theinitial deposit themanufacturer needs toinitiate production, including details ontherefund procedure incase ofdisputes.

2.Ask about Manufacturing Capacity, Shipping, ԻPackaging

Manufacturing capacity means themaximum amount ofproducts amanufacturer can produce inagiven time period. This isanimportant factor toconsider when choosing asupplier, asitwill affect lead times Իproduction timelines.

Inquire about theshipping options available from themanufacturer. Depending onyour needs, you may want tochoose between air orsea freight, oreven expedited shipping forurgent orders.

Packaging isanother crucial aspect todiscuss with potential suppliers. Make sure toask about their standard packaging options Իifthey offer custom packaging atanadditional cost. It’s also important toclarify who isresponsible forpackaging Իlabeling theproducts before shipment.

Include thefollowing questions inyour email:

3.Ask forSamples

Areputable business always requests product samples before selecting amanufacturer. Inyour email, make sure toask foraproduct sample. This will not only help you evaluate themanufacturer but also show that you are serious about thebusiness.

4.Ask forDetails about theCompany ԻtheFactory

When considering amanufacturer, gather asmuch information about thecompany Իits factory. This will give you abetter understanding oftheir capabilities, quality control processes, Իoverall reputation.

Some questions toinclude inyour email are:

It’s also worth mentioning that conducting avirtual factory tour can give you even more insight into themanufacturing process Իits facilities. This may not always bepossible, but itcan beavaluable step iffeasible.

Another crucial factor toconsider iscommunication. Ask how often they will update your product’s production status Իhow quickly they respond toinquiries orconcerns.

ToSum Up

Thorough research Իclear communication are vital toselecting asmall business distributor. Asyou continue your search, keep thequestions above inmind, Իdon’t hesitate toask potential partners forclarification orfurther information.

Whether you are looking forawholesale supplier, adropship supplier, oramanufacturer, trust isparamount inanybusiness relationship. Show that you are alegitimate Իprofessional business owner, Իyou’ll beable tobuild trust with your partners Իincrease thechances ofsuccessful collaborations. This opens thedoor tolasting partnerships Իexciting growth opportunities foryour business.

About The Author
Jesse is the Marketing Manager at 51Ƶ and has been in e-commerce and internet marketing since 2006. He has experience with PPC, SEO, conversion optimization and loves to work with entrepreneurs to make their dreams a reality.

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