Whether you are just beginning to dabble in e-commerce or you are a seasoned veteran in the world of online business, finding reliable wholesale suppliers from across the globe can be easier said than done. Many business owners find it nearly impossible to know whether a company offers high quality supplies and will deliver on its promises just by perusing their website.
Some business owners head to independent wholesale supplier verification to boost their confidence in wholesale sourcing, but are they worth the expense?
Wholesale Supplier Verification
Wholesale supplier verification can be a potentially credible signal to indicate whether a specific company is one with whom you want to work. A paper from Carnegie Mellon University last year confirmed that short of visiting the company’s premises for yourself, third-party supplier verification can offer the peace of mind a business owner wants before placing large orders with a company halfway across the globe.
However, not all wholesale supplier verification is created equal, as we will see.
Cost of Verification
In addition to a fee, the wholesale suppliers must agree to register their businesses and be subject to regulation. They must prove that they have the ability to fulfill production capacity and prove the certifications they claim. This process requires time, money and effort on the part of the wholesale suppliers, which means a natural weeding out process ensues.
In addition to the costs and commitments rendered by the wholesale suppliers, the wholesale supplier verification service also has a stake in the process. If this service recommends companies that prove to be unreliable, or worse, downright fraudulent, it also taints the reputation of the verification service.
If the wholesale supplier verification service makes recommendations based on their own one-time opportunism, they will not stay in business for very long, just like the wholesale suppliers they refer. To build their own reputation, quality verification companies will carefully screen the wholesale suppliers that make it to their recommendation list.
Peace of Mind
When the cost to both the wholesale suppliers and the verification services are appropriate, the result is a system that works in favor of the distributors and retailers most of the time. The third-party wholesale supplier verification serves as a type of implicit guarantee that wholesale suppliers will provide the goods and services promised to the distributors and retailers they serve.
However, merchants would also do well to put in some research on their own, familiarizing themselves with their wholesale suppliers to the best of their ability, such as through communities like ours. This ensures that the wholesale sourcing that is used will be reliable and offer the highest possible quality on their goods.
Should you use third-party wholesale supplier verification to select your wholesale sourcing? If you have a reliable verification company and you will be placing large orders regularly, the answer may very well be yes. When you combine wholesale supplier verification with other research about the wholesale suppliers you are considering, you are much more likely to enter the world of e-commerce with trust and confidence.