A wholesale buyer purchases goods in bulk directly from a manufacturer or distributor at a discounted per-unit rate, then resells them at a profit.
The US wholesale market is enormous. Sales at wholesalers were an estimated $817.4 billion in May 2026, according to the Census Bureau, up roughly 18.1% year over year.
Learn how to find legitimate wholesale suppliers, get licensed to buy from them, and negotiate terms.
What does it mean to buy wholesale?
When you buy wholesale, you get products at a discounted bulk rate from a supplier, like a manufacturer, distributor, or wholesaler, and resell them for a profit. Since you’re buying larger quantities, you’re typically paying a lower per-unit cost than if you purchased one unit at a time.
Keep in mind, bulk orders tie up cash before you’ve sold a single unit. US wholesale inventories in May 2026 were estimated to be $941.8 billion, per the Census Bureau. In a 2025 Shopify survey, 20% of store owners said they wish they had waited for consistent cash flow before scaling.*
A traditional wholesale supply chain works like this:
- Manufacturers produce goods, often with minimum order quantities (MOQs) in the hundreds or thousands of units, and sell them to wholesalers.
- Wholesalers break those lots down into smaller MOQs—maybe 50, 100, or 500 units at a time—and resell them to retailers.
- Retailers then sell products one by one to the end consumer, either online or in a physical store.
Take the apparel retailer Feature. They buy wholesale from brands like Nike, Converse, or Adidas in bulk, often hundreds of pairs per order, then resell each item at a markup.
It’s important to keep track of revenue versus per-unit cost. In the same 2025 Shopify survey of store owners, less than half said they track profit margin, traffic, average order value, or conversion rate. That means plenty of retailers may be buying at wholesale rates and pricing items without knowing whether the spread actually covers their costs.
The supply chain, also, isn’t always so tidy. Some retailers cut out the middleman and buy straight from manufacturers, while some manufacturers and wholesalers sidestep retailers altogether and sell direct to consumers.
Some businesses, like Apple, do it all. They manufacture their own products, sell them wholesale to other retailers, and run their own retail stores.
Wholesale vs. bulk buying
Although buying wholesale does involve buying in bulk, buying in bulk doesn’t always mean buying wholesale. The methods, reasons, and purposes differ when it comes to buying wholesale versus bulk buying.
- Wholesale buying is typically a business-to-business (B2B) transaction, in which a retailer purchases inventory at trade prices with the intention of reselling it.
- Bulk buying simply means purchasing a larger quantity at once, often to reduce the per-unit cost. The buyer may be a consumer, organization, or business, and the products may be used rather than resold.
Here’s how the two compare:
| Question to ask | Wholesale | Bulk buying |
|---|---|---|
| Who’s buying? | Retailers buy products from manufacturers or wholesalers at discounted per-unit costs. | Consumers or small businesses buy large packs of goods, often from a retailer or warehouse club. |
| Why are they buying? | Usually involves MOQs set by the supplier, e.g., 100 phone cases or 500 T-shirts. | No MOQ requirements, like buying a family pack of 24 paper towels or a case of soda. |
| How much do they buy? | The goal is to resell products individually at a markup. | The goal is to use the items and save money. |
| What type of transaction is it? | Transactions are B2B (manufacturer > wholesaler > retailer). | Transactions can be B2C or B2B (retailer > end buyer), but the goods exit the supply chain there. |
| What’s an example? | A boutique buys 200 tote bags from a wholesaler, then resells them for profit. | That same boutique buys a case of tissue paper and shopping bags for its checkout counter. |
Types of wholesalers and distributors
Who you buy from can affect your minimum order, product selection, lead time, and who is responsible for getting the goods to you.
Manufacturers and manufacturers’ sales branches
Manufacturers are the starting point in the supply chain. They turn raw materials into finished products, and they range from small operations making handcrafted items to factories producing for dozens of brands at once.
Some manufacturers sell their output exclusively through wholesalers. Others run their own sales branches or offices; wholesale operations that sell directly to retailers. Hanes, for example, manufactures their own apparel basics and supplies other retailers with stock.
Buying direct from a manufacturer can get you the lowest per-unit cost, but expect high MOQs and to be one account among many.
Merchant wholesalers and distributors
Merchant wholesalers buy inventory outright from manufacturers, thereby taking ownership of the stock, and resell it to retailers in smaller lots. Because they’ve bought in at volume discounts, they can offer per-unit prices well below retail while accepting smaller order sizes.
Distributors work the same way but typically layer on services such as warehousing and freight. They sell through cash-and-carry warehouses, online catalogs, dropshipping arrangements, and showroom appointments. Sysco, for example, buys from food manufacturers and distributes to restaurants and food retailers.
Agents and brokers
Agents and brokers are intermediaries that connect buyers with suppliers and earn a commission, but they don’t own the inventory or handle any goods. The supplier holds the stock, while the agent manages the relationship.
You might need to work with one if you’re sourcing from overseas manufacturers and need an expert on the ground, are entering a new category where you don’t know the suppliers, or are too small to get a manufacturer’s attention on your own.
The trade-off is that because agents don’t own the inventory, they also don’t own the outcome. So product quality, fulfillment, and returns all sit with the supplier behind them. Evaluate those independently before you buy.
How to buy wholesale in 6 steps
Here’s how to start buying wholesale, including preparing your business, lining up and comparing suppliers, and placing orders:
1. Prepare to buy wholesale
If you want to buy in bulk and sell items individually, you may need a license. A wholesale license, often referred to as a reseller’s license, reseller’s permit, or reseller’s certificate, can give you certain tax advantages when buying wholesale for your business.
Here’s how to set up your business to buy wholesale:
Required licenses and documentation
Before you place your first wholesale order, on top of any licenses or permits you need to sell goods and collect taxes, you may need one to buy wholesale. Proof you’re a legitimate reseller may allow you to buy wholesale goods without paying sales tax—as long as the items will be sold to customers, who cover the tax.
Here’s what you may need:
- Reseller’s license, permit, or certificate. This allows you to buy products wholesale without paying sales tax, then collect tax when you sell to consumers.
- Sales tax permit. Typically required in US states if you’re selling taxable goods.
- Taxpayer identification number (TIN). A number used by the IRS for identification purposes. An Employer identification number (EIN) is a specific type of TIN issued to businesses, and many wholesalers ask for one on account applications.
Check out the US Small Business Administration’s website to determine which licenses and permits you may need.
Note: Requirements may vary by country and state. Always check with your local government for eligibility requirements before ordering wholesale.
Business setup before supplier outreach
You don’t necessarily need a complex corporate structure to buy wholesale, but suppliers may take an application more seriously when the business is clearly set up to trade. Start by choosing and registering an appropriate structure:
- A sole proprietorship is generally the simplest option, but it doesn’t create a separate legal entity between the owner and the business.
- A limited liability company (LLC) creates a separate business entity and can offer personal liability protection, subject to state law and how the business is maintained.
- A corporation involves more formal administration and may suit businesses planning to issue shares, attract investors, or build a more complex ownership structure.
Your structure affects registration, taxes, paperwork, fundraising, and personal liability, so the right choice depends on more than whether a wholesaler will approve your account.
Before applying for wholesale terms, also prepare:
- A business bank account. This separates your personal and business finances and keeps your books clean for the sales tax you may be responsible for collecting.
- A live storefront. Suppliers may want to verify that they’re selling to real retailers. Faire, an online wholesale marketplace for retailers, requires online-only retailers to provide proof they operate a website and may request documentation to validate it.
Note: This guide is for informational purposes only and isn’t legal or tax advice. Business registration, licensing, and tax requirements depend on your location and circumstances. Consult a qualified attorney or accountant before setting up your business or applying for wholesale accounts.
2. Identify the wholesale products you need
Before shortlisting products, work backward from the margin your business needs. Estimate the wholesale price, inbound shipping, storage, taxes, fees, expected returns, and any packaging or preparation costs. Compare the landed cost—total cost of a product by the time it’s delivered to a buyer—with the price customers are likely to pay.
This is important because wholesale orders require cash upfront, sometimes weeks or months before the inventory sells. In a 2025 Shopify survey, 34% of store owners named maintaining stable cash flow as their second business goal.*
Once the numbers look viable, validate demand. Review your own sales data, collect customer feedback, and use tools such as Google Trends, social platforms, marketplaces, and industry reports to see what people are looking for and how demand changes over time.
Competitor research can reveal common price points, gaps in existing offerings, and products that appear heavily discounted or slow to move.
Use all of this info to carve out your lane. A defined niche, whether it’s eco-friendly home goods, affordable fashion basics, or specialty foods, keeps your buying decisions focused and your marketing messaging sharp.
3. Research and verify potential wholesale suppliers
While vetting vendors, keep your eyes open for red flags. Here’s what to avoid:
- Unverified business addresses or contact details that don’t check out
- Requests for payment through unsecured, non-reversible methods
- Stock photos instead of original images of inventory, warehouses, or products
- Wholesale prices that are way below market rate—a sign of counterfeit or poor-quality goods
Pay extra attention to that last one if you’re sourcing internationally. US Customs and Border Protection says more than 90% of counterfeit seizures occur in international mail and express systems. The agency also reports that nearly 90% of seizures in fiscal year 2025 originated from China and Hong Kong.
As for sellers in the US, you can check business registration through the Secretary of State’s online records.
But don’t stop at just verifying paperwork:
- Use the Better Business Bureau or Trustpilot to double-check their reputation. Some online marketplaces have verification systems.
- Marketplaces like Faire remove a lot of this hassle by pre-vetting brands and handling payments online.
- If you’d like to test products before committing, use Shopify Collective to connect with other Shopify brands and sell without buying inventory upfront.
- Your supplier should act like a partner, not just a vendor. If they know their niche inside and out they can pass along that expertise to help you sell.
- Finally, be realistic about your budget. Factor in promotions, slow-moving products, and unexpected costs before locking in an order.
Always ask for samples before committing to a MOQ.
Supplier evaluation checklist
Compare each potential supplier using the same criteria:
- Product fit. Does the product meet your required materials, dimensions, features, packaging, labeling, and compliance standards?
- Price. What’s the unit price, and which setup, packaging, payment, or service fees are charged separately?
- Minimum order quantity. What’s the MOQ per product, variant, color, or total order?
- Samples. Can you order samples, what do they cost, and will that cost be credited toward a larger order?
- Reliability. How long has the supplier operated, and can it provide relevant trade or customer references?
- Communication. Does the supplier answer detailed questions clearly and provide commitments in writing?
- Shipping. What are the production lead times, delivery estimates, freight terms, tracking processes, and import responsibilities?
- Returns and damage. Who pays for shortages, defects, transit damage, incorrect goods, or products that fail inspection?
- Business verification. Can you independently confirm the company’s registration, address, payment details, certifications, and authority to sell the products?
4. Contact the suppliers you’re interested in
Once you have a shortlist of suppliers, contact each one and ask a series of core questions. A consistent inquiry makes it easier to compare prices, order requirements, lead times, and risk across vendors.
Check the supplier’s website first, since wholesale terms, FAQs, and application requirements may already be published. Ask for any missing details in writing:
- Product and supplier details:
- Where are the products manufactured?
- Which products are held in stock, and which are made to order?
- How long has the company operated, and can you provide relevant business references or verification documents?
- Do you sell directly to consumers or to other retailers in my market?
- Do you offer territory, sales-channel, or pricing protections?
- Pricing and order requirements:
- What’s the wholesale price for the quantities I’m considering?
- What’s the minimum order quantity overall and per product, size, color, or variant?
- Are products sold in fixed case packs? If so, how many units and which assortment must each case contain?
- Are there opening-order or minimum-spend requirements?
- Which payment methods and payment terms do you offer?
- Samples:
- Can I purchase samples before placing an order?
- How much do samples cost, and is the sample fee credited toward a future purchase?
- How much does sample shipping cost, and when should the sample arrive?
- Fulfillment and shipping:
- What’s the production or fulfillment lead time for an initial order?
- What’s the typical lead time for reorders?
- Which shipping methods and delivery terms do you offer?
- Who’s responsible for freight, insurance, taxes, and customs clearance?
- How are wholesale orders placed and tracked: through a portal, marketplace, email, or sales representative?
- Problems, returns, and cancellations:
- What happens if an order is delayed, incomplete, damaged, defective, or different from the approved sample?
- What are your return, replacement, credit, and cancellation policies?
5. Purchase and receive your wholesale items
Before payment, align with your chosen supplier on the fine print, including product specifications, quantities, pricing, delivery dates, and any special conditions. Put it all in a detailed purchase order, and before you submit any order form, verify every line against it. SKUs, case quantities, unit prices, ship-to address, and delivery window all need to match what you negotiated.
Price the whole order, not just the goods. Landed cost is the real number your margin calculations depend on. Include inventory storage. Bulk orders need a place to stay, whether that’s a spare room, a storage unit, or a warehouse, storage costs and the shelf life of your products should shape how much you order at once.
If you’re handling shipping yourself, use a reputable freight forwarder to manage logistics, customs clearance, and documentation.
When your order lands, inspect it immediately. Count everything, check product quality, and note damages or defects. If something is wrong, refer back to your purchase order and agreed terms, then quickly contact your supplier to negotiate a replacement or refund as needed.
Treat the receiving process as a finance task. In a 2025 Shopify survey of store owners, inventory management challenges correlated with lower adoption of financial management practices and infrequent finance reviews.*
Understanding invoice requirements
Wholesale invoices serve as a record of a transaction and can help organize your business finances. A typical wholesale invoice should include:
- Supplier and buyer details (business name, address, and contact information)
- Invoice number and date
- Item descriptions and SKUs
- Quantities and per-unit prices
- Total amount due (with currency)
- Payment terms
- Shipping and delivery details
- Tax IDs or VAT numbers, if required
If you’re buying wholesale to resell on Shopify, integrate accounting tools like QuickBooks with your store and sync your sales data with your financial records.
Payment terms and negotiations
Common payment structures include:
- Full prepayment. You pay the entire amount before production or shipment. This presents the greatest upfront risk to the buyer and is common with first orders or made-to-order goods.
- Deposit and balance. You pay a percentage to begin production and the remainder at an agreed upon milestone, such as after inspection or before shipment.
- Payment on shipment or delivery. Payment becomes due when the goods ship or arrive, according to the contract.
- Net terms. Payment is due a set number of days after the agreed starting point, often the invoice date. Common arrangements include net 15, net 30, and net 60 days.
When negotiating, ask for terms that scale with trust. First orders may require upfront payment, but after proving reliability, push for net 30 or split payments, or ask for better per-unit prices at higher volumes if you can reliably sell a large amount of product. If you’re dealing with international suppliers, consider escrow services to protect against fraud.
6. Consider tariffs and import duties
When you buy wholesale from another country, tariffs, customs duties, brokerage fees, freight, customs-processing charges, and other taxes can all increase the landed cost of your inventory.
Wide-ranging tariffs imposed by the US since 2025 have led some businesses to adjust import strategies. In fact, Deloitte’s 2026 Global Retail Industry Outlook found that 95% of surveyed retail executives expected global trade policies to push costs higher, with many moving past small changes and rethinking supply chain designs. Further, as of August 2025, duty-free de minimis treatment for commercial shipments coming into the US valued at $800 or less has been suspended indefinitely. These shipments may now require a customs entry and payment of applicable taxes and fees.
Before every international order, check the current duty for your product category and country of origin against your country’s guidance, and build a tariff buffer into your landed costs.
You can build duties into your base cost, or make them transparent at checkout using Shopify settings. Go to Settings > Taxes & duties in Shopify to automate Delivered Duties Paid, add country of origin details, and manage Harmonized System codes. Read the complete guide on navigating tariffs.
Where to buy wholesale products
There are plenty of ways to find wholesale suppliers. Below are a few options.
1. Faire
Faire is an online wholesale marketplace that connects wholesalers and retailers. The B2B platform is designed for retailers to discover and stock up on brands from a variety of categories like home, lifestyle, beauty, and more.
If you’re on Shopify, Faire’s apps (Faire: Buy Wholesale and Faire: Sell Wholesale) let you sync catalogs, orders, and inventory straight into your admin and offer net terms to eligible retailers, keeping sourcing and bookkeeping tidy while you stock new lines.
2. Wholesale marketplaces and supplier directories
Here’s a list of alternative wholesale shopping sites where you can buy products for resale:
- Alibaba is one of the largest B2B online marketplaces globally. There’s no shortage of wholesalers, manufacturers, and distributors to choose from, many located in China.
- IndiaMart is a large Indian B2B online wholesale market. It hosts a massive number of wholesale suppliers, many of which are based in India.
- Global Sources is a multichannel market based in Hong Kong, with many suppliers listed from Asia.
- EC21 is a global B2B marketplace based in South Korea that connects millions of buyers and suppliers.
- TradeIndia is another popular B2B market based in India, with thousands of categories to browse.
- DHgate is a global wholesale market based in China, featuring millions of sellers.
- Made-in-China helps to connect global buyers with suppliers in China.
- Wholesale Central is a US-based B2B company that connects resellers with prescreened wholesalers, importers, distributors, and manufacturers. Suppliers pay to maintain their listings rather than the company taking a cut of transactions.
Before ordering through any of these sites, verify the supplier’s business identity against official registries, order samples, confirm shipping terms, and read exactly what buyer protections apply to your order.
Note: Each platform also sets its own seller rules, and may even give a badge to trusted suppliers like Alibaba’s Verified Supplier program. Use these badges as a filter for your shortlist, then run the verification steps above on whoever makes the cut.
3. Trade shows and local suppliers
A trade show, supplier fair, or regional distributor can help you find products that may not be available on large wholesale marketplaces.
Here are a few paths:
- Trade shows and supplier shows. Industry trade shows put hundreds of vetted suppliers in one building, often with show-only pricing and first-order specials. General-merchandise shows like ASD Market Week cover dozens of categories at once, while niche shows go deep into one.
- Regional merchandise marts. Permanent wholesale showroom buildings run year-round so you can source between show seasons and build ongoing relationships with showroom representatives. AmericasMart in Atlanta is one of the largest with hundreds of showrooms open year-round plus a number of annual market events.
- Local and regional distributors. Check the labels and packaging of products you admire in nearby stores to find distributor details. Or work backward from the brand and ask who distributes them in your region.
4. Direct brand outreach
If there’s a product you already know that sells, or one your customers keep asking for, going straight to the source can be simpler than hunting for it through a directory or marketplace. Here’s how to do that:
- Find the wholesale door. Look for a “Wholesale,” “Trade,” “Stockists,” or “Become a retailer” page on their websites; otherwise, email the company’s sales team with a brief introduction to your business. Many brands run wholesale account applications directly from their site.
- Come prepared. Introduce your store, state why the brand fits your shelf, and ask about their wholesale terms, including pricing, MOQs, and how to open an account.
- Ask who else can sell it to you. If a brand doesn’t sell wholesale directly, ask which distributors carry them in your region.
Fragrance brand Touchland, for example, places their wholesale link in the footer of their website alongside links to their creator program and other business resources:

5. Word-of-mouth recommendations
Ask other retailers, industry contacts, and trade associations which suppliers they have worked with directly. Request specific details, such as the products ordered, MOQ, lead time, communication quality, defect handling, and whether the final costs matched the original quote.
A recommendation can help you build a shortlist, especially when several businesses mention the same supplier.
6. Ecommerce forums
If you’re new to buying wholesale and don’t know anyone in the space yet, these places might help:
- Reddit. The r/ecommerce and r/smallbusiness subreddits may field supplier questions. Users in niche subreddits for your product category may be able to name specific distributors.
- Facebook groups. Search for wholesalers or retailers in your niche to find contacts.
- Shopify Community. Retailer forums may include sourcing threads where store owners compare suppliers and terms.
As before, check the supplier’s business identity, request samples, and confirm all commercial terms before ordering.
7. Google Search
Google can help you find manufacturers, distributors, wholesale programs, and downloadable catalogs that may not appear on major marketplaces. Search results may now include AI-generated summaries, shopping listings, directories, and other intermediaries, so open the underlying websites and confirm any information about suppliers.
You can also use Google’s Advanced Search to filter search results by exact phrases, domain, update date, language, region, and file type.

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.
How to buy wholesale FAQ
Can anybody buy wholesale?
The average consumer may be able to buy from wholesale outlets, but can require purchasing items in large quantities or obtaining a membership. Wholesalers typically cater to businesses buying in bulk. If purchasing for personal use, buyers may have to pay sales tax.
How do you buy wholesale as a small business?
Small businesses can buy wholesale by obtaining a seller’s permit or business license and then establishing an account with a wholesaler. A reseller’s certificate may be required to buy items wholesale free of sales tax.
How do you find reliable wholesale suppliers?
You can find wholesale suppliers through industry trade shows, supplier directories, online marketplaces, brand websites, retailer recommendations, and web searches for local wholesalers in your product category.
Do you need an LLC to buy wholesale?
Not necessarily. Wholesalers may sell to sole proprietors as long as they have the right documentation. But forming an LLC or corporation may give you added credibility and access to better wholesale offerings.
Do I need a tax ID to buy wholesale?
Yes, in many cases. Wholesalers may require account holders to have a taxpayer identification number or employer identification number to help verify their status as a legitimate business.












