Understanding Middlemen

Understanding Middlemen

August 27th, 2021
middleman in hood using a computer

We will talk about middlemen, but I’m sad to say, but unfortunately there are still get rich schemes that can be found online. Buy this and you will earn thousands overnight! Purchase this pre-built website and you will be an instant success! These schemes continue to run, because people keep buying in to them. Honestly, there is no such thing as a get rich overnight program, site, eBook, set of videos or anything that will instantly make you a millionaire. If that were the case, wouldn’t a heck of a lot more people in your circle of family and friends be millionaires? Statistically speaking anyway. If it were that easy….?

The same is true in the product sourcing or wholesale products arena. There are traps that you can fall into that will end up costing you more than what you will make in return. Let’s talk about Middlemen.

What are Middlemen?

Some people think that a middleman is someone other than the manufacturer of a product. Which is simply not true. There is a legitimate wholesale chain and while some companies bypass the use of distributors or wholesalers and work with retailers directly, many brands rely on these other companies so they can focus mainly on making the products.

So anytime that we talk about Middlemen, we are referring to companies that pretend to be the wholesaler of products, but in fact have products dropshipped from the real manufacturer or distributor. So these middlemen don’t have warehouses and stock and ship products. They have a fancy backend and tools that makes you think you are ordering from them.

Avoid Middlemen for these reasons:
1. Increased wholesale prices (so the middleman can earn per product)
2. Monthly or Annual membership fees (just for the right to resell their “products” and use their tools)

When looking for real wholesalers to work with, always start with the manufacturer and then follow the wholesale chain. ” Tisha Hedges, Director of Operations for WorldwideBrands.com

Finding Real Wholesalers and Dropshippers

avoiding middlemen and finding real  dropshippers and wholesalers

We have been finding and verifying wholesalers and dropshippers since 1999. We know what to look for and what to recognize as a legitimate company that falls correctly into the supply chain.

We also know how to drill down to find the right companies to contact for requested product types and we aren’t afraid to ask questions! And boy do we have a lot of questions!

We do these thing so you don’t have to. So check out our Wholesaler and Dropshipper Directory. But we get it, you might want to try to do this on your own. So here are some tips:

1. Most real dropshippers don’t advertise that they dropship. So avoid typing “Dropshippers” into a search engine.
2. Most real dropshippers do not charge a monthly or annual fee for the right to resell their products.
3. Real dropshipping suppliers work directly with the manufacturer or authorized distributor. So start with the manufacturer and contact them to ask about their dealer program or process.
4. Real dropshipping suppliers stock their own inventory. So if they say they have it for sale, then they also have it in stock, in their own warehouse and ready to ship. So ask any potential suppliers about their warehouse.

“Always come armed with your series of questions you want to ask a supplier, so you get them all out of the way the first time.” Tisha Hedges, Director of Operations, WorldwideBrands.com

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