How to Find Wholesale Suppliers in Australia for Your Online Store.
Finding the right wholesale suppliers is one of the most important steps when starting or growing an online store. Your suppliers influence much more than the products you sell — they can affect your pricing, profit margins, stock availability, delivery times and ultimately the experience you provide to your customers.
Whether you’re planning a new ecommerce business or looking to expand an existing product range, there are thousands of wholesalers, manufacturers and distributors operating throughout Australia. The challenge is knowing where to find them and how to determine which suppliers are right for your business.
Start With What You Want to Sell
Before approaching wholesale suppliers, you should have a clear idea of the type of products you want to offer and the customers you’re trying to reach.
Consider the likely retail price of your products, wholesale costs, freight, packaging, payment processing and other expenses involved in making each sale. A product may look attractive at wholesale price, but that doesn’t necessarily mean it will provide a sustainable margin once all of your costs are considered.
You should also consider whether you want to hold inventory yourself or use a supplier offering dropshipping, where products are dispatched directly to your customers.
Having a clear idea of your business model makes it much easier to identify suppliers that can meet your requirements.
Australian Wholesale Suppliers vs Overseas Suppliers
One of the first decisions many ecommerce businesses face is whether to source products locally or overseas.
Overseas manufacturers can provide access to an enormous range of products and potentially lower unit prices, particularly when ordering large quantities. However, businesses also need to consider international freight, import costs, longer lead times, minimum order quantities and communication with overseas manufacturers.
Working with an Australian wholesale supplier can offer several advantages. Products may arrive faster, ordering smaller quantities can sometimes be easier, communication is generally more straightforward and replenishing popular products can be considerably quicker.
Location is something the Australian Government also recommends considering when comparing suppliers, noting that suppliers further away can result in longer delivery times and higher freight costs.
There doesn’t necessarily have to be a single approach. Many successful online retailers source some products locally while importing others.
Where to Find Wholesale Suppliers in Australia
There are several ways to discover potential suppliers.
Google is an obvious starting point, but don’t limit your searches to terms such as “wholesaler”. Depending on what you’re sourcing, try searching for manufacturers, distributors, importers, trade suppliers and specific product categories.
Industry associations, trade shows, exhibitions and professional networks can also be valuable sources of supplier information. The Australian Government specifically recommends online searches, industry events, professional networks, industry databases and recommendations from other businesses when researching potential suppliers.
Another option is using a dedicated wholesale supplier directory.
Wholesale Suppliers Australia is an Australian wholesale business directory that helps businesses discover wholesalers, manufacturers, distributors and other suppliers across a broad range of industries.
Businesses can browse suppliers across categories such as food and beverages, fashion, beauty, homewares, hospitality, packaging, industrial products, electronics and more. Suppliers can also be explored by location, making it easier to find businesses operating in your city, state or across Australia.
A directory can be a useful starting point, but finding a supplier is only the beginning. You should always conduct your own research before deciding who you’re going to work with.
What to Look for in a Wholesale Supplier
Price is naturally important, but choosing the cheapest supplier isn’t always the best decision.
Reliability can be even more important for an online store. If your supplier regularly runs out of stock or delivers orders late, the problem eventually becomes your problem when customers are waiting for their purchases.
Consider factors including product quality, wholesale pricing, minimum order quantities, stock availability, delivery times, freight costs, payment terms, returns policies and communication.
It’s also worth researching the business itself. Check its website, reviews and business information, and consider ordering samples before committing to a significant amount of inventory.
The Australian Government recommends checking reviews and references and confirming Australian suppliers through the Australian Business Register as part of the supplier assessment process.
Questions to Ask a Potential Wholesaler
Before opening a wholesale account or placing your first large order, there are several questions worth asking:
- What is your minimum order amount or minimum order quantity?
- What are your wholesale pricing tiers?
- Do prices decrease for larger orders?
- How frequently do you replenish stock?
- What are your typical dispatch and delivery times?
- Do you ship Australia-wide?
- Can I order product samples?
- Do you offer dropshipping?
- Do you offer private label or white label products?
- What happens if products arrive damaged?
- What are your payment terms?
- Are there any ongoing account requirements?
If you’re planning to build a long-term relationship with a supplier, you should also discuss how pricing, ordering and delivery will work as your business grows.
For more substantial supply arrangements, having the terms documented can help avoid future disagreements. Government guidance recommends addressing areas such as goods supplied, pricing and payment, timeframes, delivery terms, quality standards, warranties and dispute resolution in supplier contracts.
Consider Minimum Order Quantities Carefully
Minimum order quantities — commonly referred to as MOQs — can have a major impact on a new ecommerce business.
A lower unit price might look attractive, but purchasing hundreds of units of an untested product can tie up a significant amount of your available capital.
For a new store, being able to purchase smaller quantities can sometimes be more valuable than obtaining the absolute lowest unit price.
You can test which products customers actually want, gather sales data and increase order quantities as demand becomes clearer.
As your business grows and your sales become more predictable, you may then be in a stronger position to negotiate volume pricing with your suppliers.
Don’t Forget About Shipping
Freight can quickly change the economics of a wholesale order.
A supplier offering a slightly higher product price but inexpensive local delivery may ultimately be cheaper than another supplier offering lower wholesale prices with expensive interstate freight.
Consider where your supplier is located, where products are being shipped from and how quickly replacement inventory can reach you.
This becomes particularly important when you’re running promotions or selling fast-moving products. Running out of stock for several weeks while waiting for another shipment can mean lost sales as well as frustrated customers.
For dropshipping businesses, shipping reliability becomes even more important because the supplier is effectively fulfilling orders on your behalf. The ACCC notes that businesses using dropshipping should clearly communicate stock availability, where stock comes from and likely delivery times to customers.
Build a Relationship With Your Suppliers
A good supplier shouldn’t simply be viewed as somewhere you purchase products.
As your ecommerce business grows, a strong supplier relationship can potentially provide access to better pricing, new products, larger quantities and improved ordering arrangements.
Communicate clearly, pay invoices on time and give suppliers realistic notice when you’re expecting larger orders.
It’s also worth reviewing your supplier arrangements periodically. Your requirements when processing 20 orders per month may be very different from your requirements when processing 500.
Build an Online Store That Is Ready to Sell
Finding great products is only one half of building a successful ecommerce business. You also need an online store capable of presenting those products professionally and making the purchasing process simple for your customers.
Your website should work seamlessly across desktop, tablet and mobile devices, make products easy to browse and provide customers with clear information about pricing, shipping, payments and returns.
You should also consider search engine optimisation from the beginning. A properly structured ecommerce website can create opportunities for individual products, product categories and informational content to appear in Google searches.
Australian businesses selling online also need to understand their responsibilities under Australian Consumer Law. The ACCC states that the standard consumer rights and responsibilities that apply to physical businesses also apply when selling online.
At Empower Web Design, we design and develop ecommerce websites for Australian businesses, including online stores built around the specific products, customers and requirements of each business.
Whether you’re starting with your first product range or expanding an established online business, getting the foundations right — from your suppliers through to your ecommerce website — gives your business a much stronger platform for long-term growth.
