Requirements with suppliers (MOQs, Licences, Fees, Pricing)
As you’re browsing the SaleHoo Directory, you’ll notice that some suppliers have specific requirements.
Don’t worry, this is normal. Here’s a quick guide to the various requirements you might see on a supplier’s profile.
Minimum Order (MOQ)
Some wholesalers, manufacturers and liquidators will have a Minimum Order Quantity (MOQ).
That simply means that you need to place a minimum order if you want to work with them.
The reason is that it’s often not worth the time and effort it takes to set you up as a new customer if you’re only going to place an order for a few items.
A Minimum Order provides the supplier with a level of confidence and certainty that you are serious and committed.
A Minimum Order can also be a good thing for you because buying in bulk usually means you get a cheaper price per item. So you can think of it as a win-win.
Depending on the product and supplier, a Minimum Order can range from $100 to $10,000.
About 50% of suppliers in the SaleHoo Directory don’t have a Minimum Order requirement, so there are plenty of opportunities to get started without making a bulk purchase.
License/Tax ID
Some suppliers require you to have a Reseller’s License or Tax ID in order to do business with them.
That might sound a tad official, but it’s quite normal.
Suppliers ask to see these documents to verify that you are a legitimate business and you are who you say you are.
You want to be sure that the supplier you work with is legitimate, and they want to be sure that you are, too.
It can also help with things like charging sales tax and getting your products through customs.
While not all suppliers require this information, it’s a good idea to obtain these documents if you’re serious about building a business.
You can find everything you need to know about getting a License or Tax ID here.
Fees
Some suppliers charge a fee to set up an account with them or to use their service.
It’s another way for suppliers to ensure you are serious and committed about doing business with them.
You can think of it like a Costco membership where you pay a yearly fee to shop at the low-cost wholesale store.
The suppliers that charge a fee may offer better prices than the ones that don’t.
Some dropshippers will also charge a small fee to cover the time and effort it takes to handle and ship orders on your behalf.
A majority of suppliers don’t charge fees and you can filter out the ones that do on the search results page.
But don’t let a small fee put you off working with a supplier that ticks all of your boxes. You may find that they offer lower prices and a higher level of service, which will benefit your business in the long run.
Pricing
You’ll find that some suppliers don’t list their prices publicly. Don’t be alarmed. They usually do this to protect their pricing from competitors.
You can ask for prices of specific products you’re interested in when you contact the supplier and they should happily provide them to you.
Don’t worry, this is normal. Here’s a quick guide to the various requirements you might see on a supplier’s profile.
Minimum Order (MOQ)
Some wholesalers, manufacturers and liquidators will have a Minimum Order Quantity (MOQ).
That simply means that you need to place a minimum order if you want to work with them.
The reason is that it’s often not worth the time and effort it takes to set you up as a new customer if you’re only going to place an order for a few items.
A Minimum Order provides the supplier with a level of confidence and certainty that you are serious and committed.
A Minimum Order can also be a good thing for you because buying in bulk usually means you get a cheaper price per item. So you can think of it as a win-win.
Depending on the product and supplier, a Minimum Order can range from $100 to $10,000.
About 50% of suppliers in the SaleHoo Directory don’t have a Minimum Order requirement, so there are plenty of opportunities to get started without making a bulk purchase.
License/Tax ID
Some suppliers require you to have a Reseller’s License or Tax ID in order to do business with them.
That might sound a tad official, but it’s quite normal.
Suppliers ask to see these documents to verify that you are a legitimate business and you are who you say you are.
You want to be sure that the supplier you work with is legitimate, and they want to be sure that you are, too.
It can also help with things like charging sales tax and getting your products through customs.
While not all suppliers require this information, it’s a good idea to obtain these documents if you’re serious about building a business.
You can find everything you need to know about getting a License or Tax ID here.
Fees
Some suppliers charge a fee to set up an account with them or to use their service.
It’s another way for suppliers to ensure you are serious and committed about doing business with them.
You can think of it like a Costco membership where you pay a yearly fee to shop at the low-cost wholesale store.
The suppliers that charge a fee may offer better prices than the ones that don’t.
Some dropshippers will also charge a small fee to cover the time and effort it takes to handle and ship orders on your behalf.
A majority of suppliers don’t charge fees and you can filter out the ones that do on the search results page.
But don’t let a small fee put you off working with a supplier that ticks all of your boxes. You may find that they offer lower prices and a higher level of service, which will benefit your business in the long run.
Pricing
You’ll find that some suppliers don’t list their prices publicly. Don’t be alarmed. They usually do this to protect their pricing from competitors.
You can ask for prices of specific products you’re interested in when you contact the supplier and they should happily provide them to you.
Updated on: 08/03/2021
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