Switching from Affiliate to Online Retailer

How do you jump from sending customers elsewhere to serving them yourself?

[woop01]

After paying a small bit of attention and receiving absolutely no return from numerous affiliate programs I’ve finally found a niche that has started to pay quite well. In fact, I think I could sell these products better than the company I currently send customers to. The only problem is, I haven’t figured out how to get the products at wholesale prices.

We’ve currently have plenty of room for inventory, the time/logistics to manage the shipping and handling, and obviously have the marketing power but we need to figure out how to get the products at prices that we could place markups on. I realize this is probably a pretty basic part of business but my engineering education didn’t exactly cover it.

How does a person go about contacting manufacturers to become a distributor for their products? Are there any serious roadblocks to becoming a distributor/retailer that most people don’t notice right away?

[hot_tubs]

Shouldn't be too hard. As an OEM we frequently work on bypassing middle-man suppliers and buying direct from the manufacturer. Quantity of purchase is generally the key.

Once you find out who the manufacturer is, simply call them up, ask for the "order desk" (if there is one) and tell them you want to carry their product. They may not be willing to sell direct to you, but should be able to point to to one of their distributors. Then again, you might be suprised.

"How does a person go about contacting manufacturers to become a distributor for their products?"

If it's a tangible item, look at the box. There should be a name, and perhaps even a phone nuber there.

"Are there any serious roadblocks to becoming a distributor/retailer that most people don’t notice right away?"

Convincing the manufacturer that you're serious, and not just an individual looking for a "deal" can sometimes be dificult for a new company. There also might be "teratorial rights", as in someone else in your area carries the product so they wont sell to a posible direct competitor.

[khuntley]

If you are in the U.S., you will need a resale certificate or sales tax exemption certificate. They are called different names by state.

I second hot_tubs...get on the phone with them. You'll find out exactly what road blocks they will put in your way.

Some companies (few) don't like their products sold on the Internet. Lie.

Kevin

[hot_tubs]

I've found that the "resale certificate or sales tax exemption certificate" is really only required if the manufacturer/supplier you're buying from is in the same state (USA) as you. Some manufacturers/suppliers may ask to see a business license to prove you're actually in business.

And remember, since the advent of the Geneva Convention, now all's fare in love and BUSINESS............ yeah, lie :-)

[Webwork]

Lie all the way to litigation, criminal prosecution for fraud, cessation of business relationships, refusal to service or accept returns of inventory/merchandise, and so on. Wait until your first "customer" contacts the mfr. to report a problem and explains how she found the product on the web.

I hope you are just kidding for if not you are on the fast track for a sad life. It's one thing to pretend you are what you aren't when playing games or meeting people online(if you've "grown up" on the Web it's easy to see how you think it's okay "to pretend") BUT, I promise you, in the real world of real people's real money you will find that when you get down to business by lying all manner of people (lawyers, postal inspectors, local police, F.B.I., etc.) will surprise you with the array of remedies available for putting a hurt on people who engage in deceptive business practices across State lines.

[jsinger]

The main impediment to buying direct from a manufacturer is that they often have very large opening orders to screen out the dabblers. Reputable firms will want their sales rep to meet with you in person first.

They've seen all the tricks. Don't try to fool them.

Once you get a few lines, the rest will be eager to sell to you.