Once your handmade goods are selling steadily, it's time to start thinking BIG...and BULK. That's right, it's time to think about making the leap to buying wholesale supplies in large quantities. Why? There are many reasons to consider using wholesale supplies:
- To increase your profit margin (since it will cost less to produce each new product)
- To save time (by cutting down on local trips to supply shops and general running around)
- To save money (cost of materials is less and you avoid gas/commute charges)
There are a few things you should know about wholesale buying, though. Bear in mind that most states (and other countries) will require a tax ID in order for you to purchase in bulk, because you are buying products not only for lower prices, but most times without (certain) taxes added on. Another issue is your budget.
If you cannot afford to spend a lot of money on materials yet, wholesale bulk purchasing may not work because it usually means making large orders. You are often required to buy at least $150 worth of goods – often much more.
If you think now is the right time to buy supplies in bulk, here are 6 tips to get you on the right track:
1. Compare Prices
Before you place your first wholesale order, visit different sites and compare prices. It's exciting to find a site that offers major discounts, but you may find even better deals by taking a look around.
You may be surprised to find out that some supply sellers who have set up shop on marketplaces like Etsy actually have better prices than supply websites with higher wholesale minimums. In a recent Etsy forum thread about purchasing wholesale supplies, Teri from Stem Jewelry told a fellow seller, "I find that the best prices are actually here on Etsy...check out the supply shops, and convo the sellers, I'm sure they will accommodate the quantity you need."
2. Check a Website's Legitimacy
Know that there are scam sites out there – ones that appear to be fully functioning ecommerce sites, yet they don't ship or sell goods. They just collect money. Please make sure the site you are interested in ordering from has come recommended (fellow sellers and review websites will help), so you don't end up making a big mistake and losing your hard-earned cash.
3. Do the Math
Have you sat down and figured out how wholesale materials will make a difference to your profit? Sure, it will give you a great profit margin, but what if you aren't making a lot of sales right now?
One thing I advise (having learned from my own mistakes) is to wait until you are making steady sales to order wholesale supplies. That way, you don't end up spending hundreds of dollars (typically using credit) and not making your money back fast enough. The credit interest will accumulate and that potential profit margin will start to shrink.
If you hate math as much as I do, think about investing in accounting services or spreadsheets like those offered by Holly at Accounting Spot. That way you get the icky stuff out of the way and can focus on flourishing as a handmade business owner.
4. Quality Control
When you receive recommendations to ensure a website is legitimate, check to see what people are saying about the inventory quality. Many companies, even the best ones, receive a bad batch now and again. That being said, do your homework and find out what kind of product guarantees the company offers.
Check the website's fine print to see what would happen if you did get a delivery of less-than-stellar materials. Can you return some or all of the pieces you receive? If you end up with a lovely assortment of products, but there was even $3 worth of un-useable product included, be sure to let the company know (for its own sake). If they won't take the products back, make sure you factor that loss into your profit margin.

A variety of wholesale sites
5. Question Sales and Closeouts
Liquidation sales and closeouts are plentiful when you visit wholesale supply websites. They may sound like fantastic opportunities, but ask why the products are being closed out. Are they of good quality and just not a hot seller or are they badly damaged and/or expiring soon? You need to make sure you don't end up with materials that you can't use because, no matter how cheap they are, they would be useless to you and your bottom line.
6. The Difference Between Wholesale vs. Discounts
One source of confusion for sellers on wholesale websites is the difference between "wholesale discounts" vs. "quantity discounts".
Wholesale Discounts normally mean 50 percent discount on products purchased through official wholesaler websites or official companies (such as Amy Butler or Sassafrass Lass). You will almost always require a business license and state tax license to even gain access to the wholesale product section of the site and you will need to place a large opening order.
Quantity Discounts normally mean you can get a discount on products (not usually 50 percent), based on the amount you purchase. For instance, on ArtBeads, you can get an 8 percent discount if you purchase more than 12 of certain beads. This helps you keep your order total lower (they don't require a minimum opening order) but you won't get a huge discount, compared to a full-blown wholesale discount site.
Wholesale Supply Sites: Here's a list of places to look for wholesale supplies. Keep in mind also that brand-name sellers (like Amy Butler, Alexander Henry, Scenic Route, for example) typically offer wholesale via their websites.
Justine Smith is an Etsy success story who used her experience selling online and turned it into a full-time wholesale business. Her real passion is helping handmade sellers find success marketing their craft products. She offers tips on advertising, branding, social media and growth via email through her blog Handmade Marketer.
Main Image of Beads from RJ Beads