Just about anything can be turned into business nowadays - including scams. It is especially important when starting a retail business or selling products on the internet that you do not fall victim to the many scams and middlemen who are out to make a profit on your mistakes. In order to source products efficiently and make the largest profit possible, you must know who you are getting product from, and must ensure that they are a legitimate source - liquidators, wholesaler/drop shippers etc. If they are not certified by a manufacturer, they are typically not a legitimate wholesaler. There are many people who will pose as a real wholesaler, selling products to you at a premium. This means they are taking your place in the product sourcing chain. They buy from the real wholesaler, and then they turn around and claim to be the wholesaler, and sell to you -- charging you falsely inflated prices and even worse, charge you an account setup fee and/or monthly charges to keep an account with them.

It should be fully understood that if you do not want to get scammed into buying from a middleman you must make sure you are not paying membership fees, and that you register your business with your local state government.

Real factory authorized wholesalers will work with you, but you must register your business with your state. This can typically be done in 10-15 minutes using an online application on your states department of revenue website.

There are several warning signs that you are working with a false wholesaler. Look for any of the following signs. A real wholesaler will not do any of the following:
  • 1.) If they charge you and upfront or membership fees, they are NOT a real wholesaler.
  • 2.) If they make claims of income potential they are NOT a real wholesaler.
  • 3.) If they make claims of "16,000 Items Ready For You" or something of that nature, they are NOT a real wholesaler.
  • 4.) If they do not ask for a Tax ID # they are definitely NOT a real wholesaler.
  • 5.) If they guarantee your success, they are usually NOT a real wholesaler.

If this article got your attention, please visit Product Sourcing Methods - Wholesale, Liquidation, Importing, Drop Ship, Market Research for even more information on finding real factory authorized wholesalers that will work with your small business.