How To Get A Wholesale Business License – Price And Tips

Source: DHgate, Tag: E-Commerce Tips

In today’s digital world, both buyers and sellers are doing their business transactions through online marketplaces. DHGate offers a perfect opportunity to lay a foundation for such platforms.

• Sellers are connected with buyers with seamless efficiency. If you are an aspiring wholesaler or already have an already established wholesale business that you want to take online, don't look beyond DHgate.
  This platform has been in existence since 2004. Through good management, it has emerged to be one of the leading e-commerce platforms in the world. DHgate boasts over 1.7 million registered wholesalers on its platform. These suppliers offer more than 7.7 million products to close to 16 million buyers globally.
  Additionally, the company has invested in the latest technology integrating its system with a Digital Trade Intelligence Ecosystem, ensuring effortless business transactions. By now, you could be eager to learn how to get a wholesale license and start selling through DHgate. Well, without any further ado, please follow through with the following guideline to register. Get your wholesale permit and start trading towards your financial freedom.

• Regulations for Wholesale License Registration
  The rules' objective is to establish a fair and transparent working environment and facilitate standardized wholesaler license registrations on the platform.
  Key Terminologies
  User Name:
  As a wholesaler, it is essential to understand that this stands for the name of your shop on the platform. Note that you can only use it once, and you will not be able to change it once registered.
  Qualifications: they involve relevant information provided while registering a wholesaler's account. The details include your name, ID number, company name, and license number.
  Account holder: this represents the company requesting to be registered on the platform.
  Wholesaler Registration Rules
  Qualifications
  Registration for wholesale licenses is limited to businesses outside China.
  Each business can only register a single wholesaler account on the platform.
  The annual fee for Technical Support
  Registration for a wholesale license on DHGate is subject to payment of registration fees. Nonetheless, there is a possibility of abolishing this fee in a year.
  Compliance to Registration Information
  Login name compliance
  DHGate holds all the rights to alter the login name or terminate the wholesaler’s license entirely if its name has some words that interfere with the harmony of operations at DHGate. Therefore, the wholesaler must abide by the following to avoid such scenarios.

  • The login name should not contain any details that contravene national rules and regulations or interfere with other people’s rights.

  • The name should not have any discriminatory, obscene, or insulting words.

  • It should be devoid of social media accounts such as email addresses, websites, or Facebook.

  • The name should avoid using any third-party brand or celebrity name.

  • The name should also not contain misinforming words like “top-seller."

Compliance with ID information
Your name, ID number, company name, and business license number must be filled incorrectly. This requires you to be the official registered owner of the business. The company you are registering is responsible and will be the sole holder of the wholesaler's account on our website.
You will also have to enter your phone number and official email address to complete your registration.
Account verification
The company will verify the validity of your ID, phone number, email address, and your business. Once the verification process is over, you will commence your wholesale business transactions on our platform.
Disclaimer
Please note that if your wholesale license is terminated due to a violation of DHgate rules, it may never be re-registered.
If your wholesale license is frozen due to contravention of our regulations, it may never be re-admitted.
In case you fail to respond to the verification code sent to your phone number or email address in 120 days, our system will automatically reject your registration for being incomplete.
When you successfully register but fail to log into your account for more than a year, your account will be deemed dormant. However, this can be reactivated by verifying it again.
If your wholesale license is terminated, your business is permanently forbidden from transacting on our platform, and any pending payments may never be withdrawn. The closed account may never be opened again, and the owner will not be permitted to open and own another account on our platform.
The company requires that you refrain from transferring, lending, or letting your wholesale license for safety measures. License owners found guilty of engaging in these malpractices will be held accountable, and the company reserves the right to close their accounts forever.
Business Differentiation
Once you acquire your wholesale license and fully register your account on DHGate, you will be limited to a specific business category. The company provides 13 business opportunities for different industries, having other groups established. Every wholesale account will pick a given scope of business and stick to selling products from the specified category. Kindly note that it may never be changed once you have chosen your business category. Therefore, make sure that you take time to consider a business category that best suits you before registering it.
Limits in the Number of Products
DHGate requires every registered wholesaler to upload a maximum of 10,000 products. Further, a wholesaler cannot upload more than 300 products in a single day. However, there is a possibility of some business categories being exempted from this limitation.
Benefits of Having a Wholesale License
Selling through DHGate on a wholesale basis has multiple benefits, which include:
An established customer base
By selling goods from a known brand, you benefit from the current customer base where the product is already known. It is advantageous when customers already know about the brand and are willing to buy it. Occasionally, you will benefit from existing DHGate listing and product reviews, saving you the time and cost of creating a listing from scratch.
A reliable and seamless inventory sourcing
A wholesale license guarantees you to source your product as long as the manufacturer produces it. This puts you on a safer side compared to retailing, where you have to struggle with retailers' pricing practices.
Reduced risks
Selling on wholesale is way less risky than retail or other business models. Since you don't own the brand, you will not bear the responsibility, liability, or risks of manufacturing and creating a brand for a product. On the contrary, you sell goods with a proven reputation, allowing you to focus solely on selling the items.
Additionally, as a wholesale license owner, your account is exempted from the risk suspension or permanent closure because customers complain about counterfeit products. After all, you source your inventory straight from the manufacturer, and you can justify it by showing DHGate relevant evidence such as receipts or invoices. If it were a retail license, you would be working with intermediaries. In case of complaints, your proof may lack authenticity to be accepted by DHGate and may lead to termination of your account. Finally, there is a risk of not finding inventory to sell when using a retail license, which doesn't bother you with the wholesale account.
Scalability
Most items sell very well on wholesale; this will require that you boost your inventory to keep up with client orders, thus, helping your business multiply.
DHGate brand approval
By having brand approval to sell on our platform, you will witness a reduction in buy box completion. Occasionally, this results in exclusive selling rights on DHGate, which will allow you to make more profits through increased sales.
Challenges of Having a Wholesale License
Apart from the benefits, some challenges come with selling wholesale. It is essential to carefully consider these challenges to minimize the risks of engaging in a wholesale business through DHGate.
Getting products that are not being sold on DHGate
If you have an opportunity of finding a brand that does not exist on DHGate, you have a high chance of establishing yourself as an exclusive seller. However, this can be challenging since selling on DHGate has become so ubiquitous.
Getting products that will compete successfully with other wholesalers
It is vital to find goods that sell well on DHGate, where you will be confident of securing buyers and making a high percentage of total sales. However, the challenge is you may engage in pricing wars with other wholesalers, and if you are not careful, you may eat into your profit in a bid to entice customers with reduced prices.
Finding reliable suppliers
As a new wholesaler, you will not have enough track record, which might hinder brand owners from approving your request to sell their products wholesale.
High order quantities
Most manufacturers require that you make high order quantities meaning that you will need to have a significant amount of capital to invest in your upfront inventory. Additionally, you will also have to incur the risk of having a massive inventory at hand.
Wholesaling Best Practices
Ready to get the DHgate Wholesale license? Here are a few tips to set your path to success.
Find the right product
There are a number of ways to go about finding goods that will do well under a wholesale license on DHGate. These are some good practices to get you going:
Product sourcing tip 1: Attend trade shows
Trade shows will give you a perfect opportunity to engage brand owners in face-to-face conversation and inquire about new products that would succeed on DHGate. Additionally, you will gain insight into what these brands care about, their past and current selling experiences through DHGate, any challenges faced, and share the value you can add to their business as a third-party wholesaler.
Further, the show will accord you with the opportunity to share your elevator pitch with manufacturers and showcase why they should consider you as an exclusive wholesaler of their brand on DHGate. Finally, trade shows will give you a chance to gain more information about the brands you desire to sell and easily make contact with influential individuals in a given sector.
Product sourcing tip 2: Make use of brand websites and product packaging in your research
If you are aware of good products that are yet to be sold on DHGate, use the brand’s website to track down contact information and start a conversation about the possibility of selling the product on DHGate. While this strategy may not get quick results as the face-to-face dialogue at trade shows, it certainly works, especially if your sales pitch is thoughtful and compelling.
Product sourcing tip 3: Consider best-selling products on DHGate
The advantage of selling goods that are best sellers on DHGate is that you have a guarantee of high demands from customers. At this juncture, your primary goal will be winning over customers and start making money on the best-selling items. However, while looking at these items, avoid those that have wholesalers engaging in regular pricing wars since this might eat into your profits.
Manage inventory carefully
The risk associated with having a considerable inventory is one of the challenges that face wholesalers on DHGate. The challenge is more profound for new wholesalers because they are unsure how fast the product will be sold out. At this point, intelligent inventory management will be critical to avoid extra costs on storage fees, which may reduce your earnings.
FAQ
Is it safe to transact wholesale business through DHGate?
Absolutely yes, DHGate has put in place measures that protect wholesalers by ensuring that they receive all their earnings as soon as the customer confirms reception of their order.
Conclusion
As an upcoming entrepreneur, the best decision you can make about your business today is to acquire a wholesale license and start selling through DHGate. Your business will ride on DHGate’s popularity to quickly get products from reputable manufacturers and sell them to millions of registered customers on DHGate. The guaranteed availability of products and customers is a direct ticket for your enterprise to grow, meaning that you will be able to make enough money to realize your dream of enjoying financial freedom.