Most buyers simply cannot afford the potential damages that can result from buying unverified stocklots. For that reason they deal with suppliers and clients with whom they have formed longstanding relationships. This is why trust is such a vitally important factor in this industry.
If you are working with a new supplier for the first time, there are a few precautions you can take to verify them as being legitimate. Asking to see their business registration, doing some background research on their company, and checking their email address are all quick and simple ways to protect yourself from scams. (View a detailed and very informative thread on this topic here.)
When it comes to establishing trust and verifying a lot, you don’t’ have to go it alone. TigerTrade pre-verifies all of its stocklots and works with sellers directly to guarantee that all of the merchandise is legitimate.
Channel Control On Your Inventory
Managing channel control on your business’s inventory is a question of details and organization. First, it is important to be sure that you read and understand every part of the agreement you sign with your supplier. Even if your agreement does not explicitly mention any restrictions on where and how you are allowed to sell this merchandise, it is prudent to conduct some research on the brand and product before you buy.
If you find yourself uncertain about the rules regarding the resale of the goods, you can reach out to your trusted contact, or the brand directly. They should be able to provide you with paperwork proving the lot’s authenticity and detailing any channel restrictions that may be in place.
A secondary option is to consult online forums where other sellers have posted their experiences about working with branded merchandise. These forums can be valuable resources for getting advice and insights about how the markets and the industry works. Two of our favorites are retailersforum.com and wholesaleforum.com.
And as we mentioned above, TigerTrade will also handle much of your distribution channel management for you!