Supplier Spotlight: All About Manufacturers – Can they help your business skyrocket?

Want to know who the top eBay PowerSellers buy their stock from? You guessed it, manufacturers! The important question is: Why?

Well, there are two main reasons why the big players of eBay use manufacturers:

1. They are the very first link in the supply chain. This means that they can offer the very BEST prices available, which equals more sales, and more profits!
2. When you deal direct with a manufacturer, you gain access to hottest and newest products on the market. This is where rubbing shoulders with manufacturers really helps your profits skyrocket: if you can be the first to sell a hot new item, you can make a killing!

The only downside here is that in order to buy from the majority of suppliers, you need a big budget; many manufacturers require a minimum spend of $5,000 – $10,000 or more. This is why manufacturers are popular among PowerSellers who sell in high volumes and have the necessary cash-flow to invest in large orders.

The main reason that manufacturers have such high MOQs (minimum order quantities) is because unlike wholesalers, distribution to retailers is not really their specialty. Their interest is primarily making the items and selling them in high volumes to their wholesale distributors.

Don’t be put off by those figures though, plenty of retailers start out using wholesalers or drop shippers and then move their way up to using a manufacturer when they have the cash and experience to seal a fantastic deal.

When that time comes, you are going to need to know where to find them, so here is a quick rough-guide to finding manufacturers you can work with.

Where to find the best manufacturers:

While doing a quick Google search might seem like a good idea (after all, its how we find everything else we need), finding manufacturers this way can be like taking a wrong turn onto the Scammer Highway.

With so many new retailers out there deciding everyday to try their luck at eBay, dodgey scammers see an opportunity to pretty on their vulnerability. The result? Thousands of fly-by-night “suppliers” who set up make-shift websites and allure retailers in with low prices. When the retailer has placed their order, the phoney supplier takes their money and runs off into cyber space. Don’t let this happen to you!

It’s a nasty truth, and it happens far too often for my liking, but product supply scams is something that all retailers need to be aware of.

Better options are supplier directories such as Alibaba and SaleHoo.com.

Alibaba

Alibaba is a free-to-use directory full of Chinese manufacturers and suppliers. It’s a diverse platform for finding manufacturers – you can pretty much find anything imaginable there.

Alibaba essentially acts as a place where suppliers can meet retailers, showcase products and negotiate deals with retailers. It’s certainly worth looking into, but I would recommend that you take caution when dealing with these suppliers – Alibaba do NOT verify all of their suppliers, and therefore cannot guarantee that they are legitimate suppliers.

If you do want to use Alibaba, always order a sample before you go placing a large order and pay only by credit card or PayPal. When you use these payment methods, you may have the option to perform a chargeback if something goes wrong, or if the supplier rips you off completely.

SaleHoo

SaleHoo is a supplier directory that lists over 8,000 pre-screen and verified legitimate suppliers, so worrying about being scammed is never a problem when you find suppliers there.

They list not just manufacturers, but also drop shippers, wholesalers and liquidators and have suppliers from every corner of the world.

Another great feature is their free trade show directory which lists local trade shows in over 100 countries. It’s the perfect way to find trade shows in your area so that you can get in touch with local manufacturers (and save a ton on shipping costs!).

Quick Recap on Manufacturers:

• Manufacturers are great because they give you rock-bottom prices and can give you access to hot new products, giving you a big competitive edge over other sellers.
• The only downside is that they do have high MOQs, but these are well worth working your way up to so that you can enjoy the benefits.
• When looking for manufacturers to work with, avoid doing a simple Google search, you could end up as the victim of a scam.
• Instead, use supplier directories such as Alibaba or SaleHoo. When using non-verified suppliers from Alibaba, make sure you always take precautions such as ordering samples and using safe payment options.

About the author: Alice Delore is a copywriter for SaleHoo Wholesale Directory. She also regularly publishes on the SaleHoo Blog.