Buying wholesale stock reduces the price you pay per item and directly increases your sales profit margins. Manufacturer websites, online auctions and direct wholesale markets have made a variety of bulk products available to the general public at wholesale prices. Some industries only offer wholesale prices to companies with current business licenses and a state tax ID. Purchase products at a discount that will sell for a good profit by making large orders of wholesale stock.

Step 1.

Set up your retail business with state and federal tax ID numbers and a company name. Fill out the appropriate wholesale permit forms for your state and file them along with the required fees and bonds with the state's Department of Revenue. Retail permit fees may vary by product type and number of resale locations.

Step 2.

Research the availability wholesale markets, manufacturer wholesalers, importers and wholesale catalogs for the products you wish to stock and sell. Contact companies directly to see if they offer wholesale distributor programs. Be prepared to provide your company name, tax ID numbers and wholesale license number before being given a quote.

Step 3.

Place a wholesale order with the company you have chosen by fax machine, through an Internet order form or over the phone. Make sure that you understand the quantity of each item you are ordering. Some wholesale items are sold by the lot or gross.

Step 4.

Provide acceptable payment information with the order or provide a location for the bill to be mailed along with the products. Select the mailing options that work best for your situation if multiple choices are provided.

Step 5.

Check the wholesale shipment carefully when it arrives to be sure the product received matches the invoice. Mistakes may have been made when the order was packed for shipment. Contact the wholesale company right away when you realize there is a problem with the order.


Keep an accurate and up to date inventory to avoid overstocking a single item. Rotate out older stock by offering discounts and sales promotions that still allow you to make a reasonable profit.


Some states perform a criminal background check before issuing wholesale and retail licenses.