How To Buy Wholesale Products: 2025 Complete Guide

Can anyone buy from a wholesale supplier? Do you need a license to purchase wholesale? Are there different types of wholesalers? Where can you buy wholesale products?

Those are just a few of the questions you might be wondering about the wholesale business. As if buying wholesale isn’t a massive undertaking in itself, there’s so much information online and so many websites offering to help you buy wholesale products—and not all of them are legitimate. 

So, what do you need to know about how to buy wholesale to avoid making costly mistakes in your business?

Ahead, you’ll learn how to quickly and confidently buy wholesale products for resale.

What does it mean to buy wholesale?

Buying wholesale means purchasing products directly from a supplier—like a manufacturer, distributor, or wholesaler—at a discounted bulk rate, then reselling them at a markup. Instead of paying retail prices one unit at a time, you’re paying a lower per-unit cost because you’re committing to larger quantities.

Here’s how buying wholesale usually works in practice:

1. Manufacturers produce goods, often with minimum order quantities (MOQs) in the hundreds or thousands of units, and sell them to wholesalers.
2. Wholesalers break those lots down into smaller MOQs—maybe 50, 100, or 500 units at a time—and resell them to retailers.
3. Retailers then sell products one by one to the end consumer, either online or in a physical store.

Take the apparel retailer Feature. It buys wholesale from brands like Nike, Converse, or Adidas in bulk (often hundreds of pairs per order), then resell each item individually at retail price.

Of course, the supply chain isn’t always so tidy. Some retailers cut out the middleman and buy straight from manufacturers. Some manufacturers and wholesalers sidestep retailers altogether and sell direct to consumer. And some players, 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 does not always mean buying wholesale. The methods, reasons, and purposes differ when it comes to buying wholesale versus bulk buying. 

Typically when we use these two terms, here’s what we mean: 

1. Wholesale is a business-to-business (B2B) model built on supply chains, in which the buyer intends to resell the wholesale stock they’ve bought at retail prices.
2. Bulk buying is a consumer tactic for saving money and does not involve reselling the bulk items they’ve purchased. 

Here’s the breakdown:

Basically, wholesale is about fueling your resale business, while bulk buying is about stretching your budget.

3 types of wholesalers

Not all wholesalers operate the same way—and those differences matter for your margins and timelines. Knowing who you’re dealing with helps you avoid dead ends and partner with suppliers who actually support your growth.

Broadly, there are three main types of wholesalers you’ll run into:

Manufacturers

Manufacturers are the starting point in the supply chain. They turn raw materials into products you use every day. These companies can be small, making unique and handcrafted items, or really big and producing lots of different products for many brands.

For example, Hanes manufactures its own apparel basics and also supplies other retailers with unbranded stock.

Retail wholesalers

Retail wholesalers are the middlemen. They buy products in big quantities from manufacturers and sell them to stores. They get discounts for buying in bulk, which means they get the products at a lower price per item.

Wholesalers will sometimes sell products with their own packaging and label. They also have a good understanding of market trends, so they likely always have the best products available for sale.

A great example is Costco—which buys from multiple manufacturers and resells those goods in bulk to consumers and smaller retailers.

Merchant wholesalers

Merchant wholesalers buy products directly from manufacturers, and then sell them either to stores or directly to consumers. They have different ways of selling, including cash-and-carry, dropshipping, and online sales, sometimes even showcasing products in warehouse showrooms.

Shein is a popular merchant wholesaler. They can be found selling in bulk and to consumers on Alibaba, eBay, Amazon, Poshmark, and their own retail website.

How to buy wholesale in 6 steps

Buying wholesale is simple on paper: bulk in, margin out. The real trick is knowing how to find the right suppliers, cut smart deals, and keep your cash flow intact.

Here’s your road map to how to buy wholesale for your business:

1. Prepare to buy wholesale

If you want to buy in bulk and sell individually, you need a license (and some other documents—more on this in a moment). 

A wholesale license is often referred to as a reseller’s license, a reseller’s permit, a reseller’s certificate, or a sales tax permit.

In addition to permits, it’s a good idea to have insurance in the event that something goes wrong—especially if you’ve just started learning how to buy wholesale.

There are a few different types of insurance you may want to consider. For example, you may want to invest in limited liability insurance. You can also get commercial insurance to minimize other business risks. 

📚Read more: Ecommerce Business Insurance 2025: Affordable Options

Required licenses and documentation

Before you place your first wholesale order, you’ll need paperwork that proves you’re a legitimate reseller. At a minimum, this usually includes:

• Reseller’s license/permit/certificate (US). This allows you to buy products wholesale without paying sales tax, then collect tax when you sell to consumers.
• Sales tax permit. Legally required in most US states if you’re selling taxable goods.
• Taxpayer Identification Number (TIN). This is issued by the IRS; needed if you’re collecting and remitting sales tax across state lines.

Check out the US Small Business Administration’s website to determine which licenses and permits you may need.

💡Note: Requirements vary by country and even by state. For example, California issues a seller’s permit through its Department of Tax and Fee Administration, while Texas retailers apply for a sales tax permit through the comptroller’s office. Outside the US, licensing rules may look very different—always check with your local government before ordering wholesale. 

Setting up your business structure

The legal structure you choose for your business impacts how you buy wholesale, pay taxes, and limit personal liability:

• Sole proprietorship. The simplest structure, but your personal assets aren’t protected if the business runs into trouble. Some wholesalers may still sell to you under this setup, but others prefer more formal registration.
• Limited Liability Company (LLC). Popular among small retailers; separates your personal and business assets and often makes you look more credible to wholesalers.
• Corporation (C corp or S corp). More complex, but can be useful if you’re scaling quickly or seeking outside investors.

Most new retailers start with an LLC—it’s affordable, protects you legally, and often opens the door to more wholesale accounts.

2. Identify the wholesale products you need

There’s no shortage of wholesale products to sell. The difference between winning and wasting money comes down to how well you know your customers: their tastes, their habits, and the paint points they can’t solve elsewhere.

Start with market research: Use tools like Google Trends, social media chatter, and industry reports to spot what’s rising, what’s fading, and what’s missing entirely. Study competitors closely—if they’re selling it, ask yourself whether you can sell it better, faster, or cheaper.

Then carve out your lane. A defined niche—whether that’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

When you’re vetting vendors, keep your eyes open for red flags.

🚩Here are some supplier red flags to avoid: 

• Unverified business addresses or contact details that don’t check out
• Requests for Western Union or wire-only payments with no secure payment options like PayPal, credit cards, or escrow
• Stock photos instead of original images of inventory, warehouses, or products
• Wholesale prices that are way below market rate; usually a sign of counterfeit or poor-quality goods

Legit wholesale companies won’t flinch if you ask for proof of credibility. Request a copy of their business license, reseller permit, or sales tax ID, and verify it against state or country databases. 

💡Pro tip: 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 tools like Better Business Bureau, Trustpilot, or Alibaba’s Verified Supplier badge to double-check their reputation. 
• Marketplaces like Faire remove a lot of this hassle by pre-vetting brands and handling payments online. Or, if you’d rather 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 out—like the wholesale soap supplier, Noble Otter Soap Co., run by two passionate soap makers—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. 

Remember to shop around. Many wholesalers carry the same or similar products, but their pricing, terms, and service quality can differ dramatically.

4. Contact the suppliers you’re interested in

Once you’ve shortlisted several wholesale vendors you’re interested in working with, it’s time to reach out to learn more about them.

When reaching out to suppliers, refer to questions like these to gather the information you need to make an informed decision:

• Where are your products made or manufactured?
• What are your wholesale delivery lead times? (As a retailer, quick turnaround is essential; running out of stock means missed revenue.)
• What is your minimum order quantity (MOQ) for wholesale?
• How long has your company been operational?
• Do you sell products directly to consumers?
• Can I buy samples before I make a purchase?
• What is your return policy for any damaged items within an order?
• Do you have a digital wholesale ordering system, or will I need to place an order on the phone, by email, etc.? (These systems help eliminate things like order errors and fulfillment delays.)
• What happens if my order arrives late?

Some vendors will have already answered many of these questions on their website’s FAQ page, so you may be able to save some time by searching their sites first.

5. Purchase and receive your wholesale items

Before you cut a check, align with your supplier on the fine print: product specifications, quantities, pricing, delivery dates, and any special conditions. Put it all in a detailed purchase order.

Terms vary: Some suppliers want full prepayment, others offer net 30 (payment due 30 days after delivery). Negotiate terms that protect your cash flow. 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’s wrong, refer back to your purchase order and agreed terms, then quickly contact your supplier to negotiate a replacement or refund as needed.

Understanding invoice requirements

A wholesale invoice is a legal record that protects you and keeps your books clean. Inaccurate invoices can derail your bookkeeping, mess with your tax filings, and even cause problems with import/export compliance.

A typical wholesale invoice should include:

• Supplier and buyer details (business name, address, contact info)
• Invoice number and date
• Item descriptions and SKUs
• Quantities and per-unit prices
• Total amount due (with currency)
• Payment terms (e.g., net 30, upfront)
• Shipping and delivery details
• Tax IDs or VAT numbers, if required

💡Pro tip: If you’re buying wholesale to resell, Shopify keeps your paperwork clean. Store supplier invoices, track costs, and sync everything with accounting tools like QuickBooks or Xero—so every bulk purchase shows up in your books automatically.

Payment terms and negotiations

Wholesale payment structures usually fall into a few buckets:

• Upfront payment: You pay 100% before goods are shipped; lowest risk for the supplier, highest risk for you.
• Split payment (50/50): Half upfront, half on delivery; balances risk for both sides.
• Net terms (net 15, net 30, net 60): You pay after delivery, giving you time to sell products and cover cash flow.

When negotiating, ask for terms that scale with trust. First orders may require upfront payment, but after proving reliability, push for net 30 or 50/50. If you’re dealing with international suppliers, consider escrow services to protect against fraud.

6. Consider tariffs and import duties

If you’re sourcing wholesale from abroad, tariffs and duties are now front and center—not just red tape. 

As of August 2025 in the US, the decades-old “de minimis” loophole—where small packages under $800 weren’t taxed—is officially gone. That means every import, even cheap bulk items, now can face duties from 10% to 50%, or flat fees ranging from $80 to $200 per package.

Additionally, starting April 5, 2025, the US imposed a 10% baseline reciprocal tariff on most imports. By April 9, additional country-specific duties kicked in, raising costs even higher depending on the origin of goods.

💡Pro tip: Build duties into your base cost—or make them transparent at checkout using Shopify settings. Go to Settings > Taxes & duties in Shopify to automate DDP, add country of origin details, and manage HS codes cleanly. Read our complete guide on navigating tariffs in 2025 and beyond. 

Where to buy wholesale products in 2025

There are plenty of ways to find wholesale suppliers—let’s look at a few tried-and-tested options.

1. Faire

Faire is an online wholesale marketplace that connects independent retailers with small businesses and makers to browse and order products wholesale online. It’s essentially a B2B platform designed for local retailers to discover and stock thousands of unique and independent brands from over 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

Here’s a list of alternative wholesale shopping sites where you can buy wholesale products for resale:

• Alibaba is the largest B2B online marketplace globally. As a result, it lists countless wholesalers, manufacturers, and distributors to choose from—most located in China.
• IndiaMart is the largest B2B online wholesale market in India (and the second-largest globally, after Alibaba). It has a massive database of wholesale suppliers to choose from, many of which are based in India.
• Global Sources is a wholesale market based in Hong Kong, and the majority of suppliers listed are based in Asia.
• EC21 is a wholesale marketplace based in South Korea, listing more than 1.5 million suppliers.
• TradeIndia is another popular wholesale market based in (you guessed it) India, with more than 2,000 categories to browse.
• DHgate is another wholesale market based in China, featuring millions of sellers in China, Turkey, and Korea.
• Made-in-China primarily helps to connect global buyers with suppliers in China.

Platform-specific selling requirements

Each marketplace has its own rules for who can sell, what documents you need, and how fulfillment works. Here’s a quick snapshot:

1. Alibaba:

• Requires a verified supplier account.
• Requires a business license and company verification documents.
• Fulfillment managed by the seller (unless using Alibaba.com Freight).
• Prohibited items: counterfeit goods, weapons, and restricted chemicals.

2. IndiaMart:

• Business registration proof required.
• GST registration for Indian sellers needed.
• Seller handles shipping and logistics.
• Prohibited items: firearms, illegal drugs, counterfeit goods. 

3. Global Sources:

• Verified business license and export credentials required.
• Fulfillment is usually seller-managed.
• Prohibited items: hazardous materials, infringing products.

4. DHgate:

• Seller account with business verification.
• Identity documents required (passport or business license).
• Fulfillment via seller or DHgate logistics partners.
• Prohibited items: counterfeit products, adult content, banned drugs.

5. Made-in-China: 

• Requires company verification and business license.
• Some categories require product certifications (e.g., CE, FDA).
• Fulfillment is seller-managed.
• Prohibited items: restricted tech, counterfeit, military goods.

3. Word-of-mouth recommendations

Word of mouth is one of the best ways to find wholesale suppliers, as they’ve already been pre-vetted by someone you trust. Ask your connections for their recommendations and listen for repeated names in your network.

4. Ecommerce forums

What if you’re new to buying wholesale and you don’t know anyone in the space personally? There are plenty of established ecommerce forums, Facebook groups, and subreddits where you can connect online with other retail business owners. Plus, wholesalers also tend to hang out in forums hoping to pick up new business. 

5. Google Search

If you’re still hitting dead ends, plain old Google can work—but only if you dig deep. The top results are often SEO-savvy middlemen, not necessarily the most reliable suppliers. 

Scroll beyond page one, tweak your keywords with terms like “wholesale distributor,” “bulk supplier,” or “MOQ 100,” and add your niche (e.g., “wholesale eco-friendly kitchenware”).

And as always, vet before you trust.

💡Pro tip: Use Google’s Advanced Search to filter by region or file type (e.g., PDF) to surface supplier catalogs that don’t always show up in regular searches.

Start buying and selling wholesale with Shopify

It takes research, patience, and a healthy amount of skepticism to learn how to buy wholesale for resale.

Unless you’re buying wholesale for personal use, you’ll need the proper licenses and documentation to stay compliant. And it pays to shop around: Comparing suppliers, negotiating terms, and running the numbers before you commit keeps your margins healthy.

That’s where Shopify comes in. Beyond helping you source products through integrations like Faire, Shopify gives you the tools to track inventory, manage bulk orders, and build lasting B2B customer relationships. You can even set up a password-protected wholesale storefront right inside your Shopify site—so once you’re ready to scale from buying wholesale to selling wholesale, your business runs on rails.