Getting suppliers without a shop

[iLove]

Hi, I'm a newbie here, so I'm sorry if this has already been posted elsewhere. I'm setting up an ecommerce site and am really struggling to get suppliers to supply an internet only venture. We have all the other elements agreed in principle, but we really don't want to have to go to the expense of setting up a bricks and mortar shop simply to convince a manufacturer to supply us. (we live in the middle of nowhere, so a shop would never be profitable).

I'm guessing this is a common problem and I'm hoping there's a standard solution. Can anyone give me any pointers?

Many thanks

[computerfaq]

Depending on what you're trying to e-retail I suppose. I run my sites from home and don't have much problems getting suppliers, but I do have to drop that I work with clients our in their properties and can have quite a say in what they use before they start to get interested. (I work with a few personal clients as an IT consultant).

[Page]

Have you asked them why they wont.

You can then deal with the issues that they raise to make them happy.

There might be any number of reasons.

That you are new to business and dont come over as right. (They have heard it all before) and just want to sell stuff not teach people what to do.

Maybe you are expecting credit with no track record.

It could well be that they do not want their bricks and mortar retailers - where the products are displayed - to be undercut by discounted internet only retailers. If you promise not to do this they may supply you.

But ask and find out. Even share your problem and see what they say.

Maybe create a "dummy" web site with items on - that looks good etc.
Say you would like to add their products to your current range.
Now you are sounding different.

[iLove]

Thanks. I will try explaining it to them again. I've faced the same issue across a few categories. Bikes for instance, where the suppliers say that customers need to be able to try the bikes. This makes sense, however you can buy a bike on loads of shops' internet sites - so it's hypocritical. Also in other areas, such as tents. The reason given is always the same - that they want customers to be able to view them before buying.

I've been in business for a while, but as a consultant on retail strategy. Working with larger companies I've not come across this before, but as a start-up retailer this is really setting me back. I'll try what Page suggested, but I don't need credit and I'm knowledgable about the categories that I'm trying to get into.

Any other thoughts?

thanks

[Page]

You may struggle if you approach the same suppliers but say that you work the show circuit. Even if you do not.

(My background partly)

Interestingly pre internet - show only retailers would not be supplied by some suppliers unless they had a bricks and mortar operation as well.
Back in those days it was just called a shop!

[Page]

Open a show room and service shop.

Provided customers have a chance of seeing the goods etc they may be happy to supply.

You do not have to say that you are in the back of beyond.

Just ensure that you say that all are welcome.

And put it on that "dummy" web site.

[iLove]

Thanks Page - I'll give that a go. I have to have a warehouse of course, so putting aside an area as a show room shouldn't be a problem. The simple solutions are always the best. Thank you.

Any other people's suggestions still welcome.

[boho]

Often suppliers have an issue selling to internet only sites, because of the perception that we will undercut their high street dealers and they don't like that, this frustrating misconception is extremely prevalent in the jewellery and fashion industry where certain designers will cut their nose off to spite their face because they still see the high street as the place they want their image portrayed and they do not see that they could easily just impose some restrictions on online retailers that most would be happy to abide by.

Question if this is the issue, and if it is make it clear you have a strict policy of not deliberately undercutting other sellers and that you are more than happy to abide by whatever retail prices they want their product sold at.

Also explain to them about your customer service, returns policy and after sales care, it may be that they are just anticipating issues that aren't there. If you have a warehouse then make it clear to them that all items will be properly stored - even invite their sale rep out to visit, that quite often stops some of the negativity.

[weddingcrafter]

I've never had that many problems getting suppliers, but I have noticed a shift in attitudes.

I attend a big trade fair every year, where your badge shows what type of business you have (shop, internet, etc). The first year I went (3 years ago now) you could see quite a few glancing at your badge and ignoring you if it was the wrong colour. That has changed now - over the last couple of years, suppliers are recognising that ecommerce is here to stay and if they aren't in it, someone else will fill their place.

Good luck.

[iLove]

Thanks everyone. Your comments are really useful. It's making me wonder whether i'm using the wrong approach with potential suppliers. I have identified the key suppliers for my market segment and I'm calling them and requesting trade pricing. That's when they ask what type of business I am and then refuse to go any further.

Can someone else please suggest a better method of first contact? I don't have a trade show in the near future (as I know these are good), but could do with getting some manufacturers on board in the next few weeks.

Any advice would be geat! Thank you so much everyone.

[boho]

Spring Fair & the handbags shows this year unfortunately showed that there are still too many in my industry that have an 'attitude' when it comes to online retail, that you are degrading their product - and I've had several make exactly those kind of derrogatory commments - such as Pilgrim, Fiorelli, the mindset that you must have a retail shop as well as a website sucks, and these people will come rapidly unstuck in the future!
My badge now has multiple retailer on it instead - this seems to make life easier ;)

There is a lot more positivity about ecommerce now, but it's not across all markets. For example the major players in the tent and outdoor supplies market, such as Lichfield etc will also not deal with businesses that are online only, and the same is true of a lot of suppliers in the horseriding and pet supplies industries. You can break through it, but generally this does require you do keep pushing for their reasoning and looking at how you can find a way round their concerns.

[boho]

I've had the best results by email so far, but don't make the mistake of giving away too much information, you want them to be interested in you, and not their prejudices about online retail.

Write and say that you have recently opened a business called x selling x products and that their company has been recommended to you as a potential supplier of x products, can they please forward to you details regarding setting up a wholesale/trade account along with a current trade price list and catalogue, and can they also please advise their minimum order quantities/order value if applicable.

This should at least get your foot in the door, and the more confident you come across and more knowledgeable and exact about your requirements the better.

[boho]

Also another pointer, as I've just noticed in your original post you stated these were manufacturers - this can be (not always) more difficult sometimes as they have a false expectation that you won't purchase in the bulk quantities that they sell in. If you're getting resistance from the manufacturer themselves then ask them if they have any UK distributors that you can purchase via - it will be a bit less mark up for you, but it is often the best way round it when first starting up, if you can purchase the items you want through distributors & other retail businesses that operate a wholesale trade side you can then establish a trading history and proof of sales that you can go back to the manufacturer with and request that they reconsider.

[iLove]

Boho, you are a star. thank you so much for your advice. I will try all this stuff now and see where I get. Thanks again. I'll keep you posted. I hope your business is successful and stays that way.

P

[boho]

Aw thank you, you too :)
No problem, good luck with it all and let me know how you get on. If you need any help or advice feel free to pm me anytime, I know how frustrating and also rewarding running a business is online and sometimes it's good to have a sounding board for ideas!

Best word of advice, don't give up! Let the barriers whilst frustrating, only make you stronger and more determined to fight back and be a success, there is always a path through, however meandering and indirect it has to be in the early days.

[franco_24]

Interesting. I think part of it boils down to the fact they think you are a small trader working from home. Many importers now have strict sign up criteria for traders and they do seek verification and confirmation that you are really a serious player.

I think it is more about how you handle it than who you are. I had one rather large snooty wholesaler say they didn't deal in anything internet so I just told them I would go and spend this weeks £5k with their nearest competitor where I already had an account. That suddenly changed things. Unfortunately money talks and it always impresses a new importer or wholesaler if you take your largest recent invoices to them as proof you are a trader. Once you have one or two large accounts everyone else seems to just accept you automatically. Getting started is the hard part. After that I don't think most give two hoots about whether you are an online trader or not.

:)

[office man]

suppliers will always look after their high st dealers first, thats only fair as anyone could just set up otherwise and completely saturate the market. Try visiting the supplier and offering a long term plan for your business. Every manufacturer out there must be plagued with wannabe internet shops, if it was easy there would be no money at all in what ever you are doing.

If you don't get anywhere you could always approach an actual shop (at owner level) and ask for a discount to get you started, i know someone who did this about 3 months ago and it works pretty well.

[boho]

Lol, yes I must admit I enjoy doing that too, they also tend to panic when they realise you're page one of google and that you've been featured in the press...it's fun as well as quoting statistics back at them of the level of online trade they are missing out on ;)

I'd agree with Franco, once you're past the first hurdle the situation does tend to change, you just have to approach it all with confidence. Just don't worry about the numpties who still turn you down - it's their loss!

Office man -personally I think high street shops come and go too, it's a huge risk and many go under, so their reliance on the high street should be balanced with an appreciation of the number of people who now shop online. Starting off with a discounted rate from another retailer does help - did that myself in the very early days, but you have to bear in mind you are both customer and competition, so be careful of the relationship and move up the chain as soon as you can.

[iLove]

Hi everyone, and thanks for the continued discussion. Office Man, thanks, I see where you're coming from, but I assure you I'm not afraid of hard work, and having worked with retailers for a number of years now I can tell you that it is just as hard to make a living on the internet as it is owning a chain of shops - it's just a different channel. Ultimately hard work is one thing, barriers that you can't get through are totally different. I'm going to keep working at it and will keep you all posted.

[Toon]

Being in the branded clothing industry, I found it almost impossible to set up accounts with some of the major brands without owning a shop. Even now with a shop, they can turn me down because of the location of the shop or because there's already someone in the area offering the same brand.

The only way I found around getting the brands were to buy previous season stock from wholesalers or going to auction houses and buying liquidation stock. I think if they won't supply you then they won't supply you, you just have to build up your business and when you can afford it just rent a small shop somewhere just so you have some commercial property to tell them about.

[Steve2507]

I think it depends on the industry.

In the adult industry accounts are not as popular as in other industries, the suppliers need to get to know you first before you can get an account. So you have to pay pro forma.

Looking at it from a suppliers point of view, so many people think they can become rich overnight by setting up shop on the internet, that the suppliers don't want to take the risk. At least if you have a bricks and mortar shop the supplier know you are serious.

So try contacting suppliers offering to pay pro forma first. That way they know you are serious and they know they have got their money. After a few orders ask them about an account.