Obstacles of being a new business

Hi everyone, I'm new to this forum. My friend and I recently started a business which is an online furniture store. Some of the biggest hurdles we've faced is finding manufacturers who will accept us. We are registered in the state of Washington but since we don't have business references or X amount of years in business, they won'e open up dealer accounts with us.

I feel like this is a chicken and egg problem. How are we supposed to even start a business and have X amount of years in business if we can't even find a manufacturer in the first place? Does anyone have similar problems and is there any insight to this?

Thanks!
Supersonic Emporium

 

Getting suppliers/ manufacturers is easy these days. It is buyers's market these days with poor world economy.
The manufacturers you approach are probably those old school or big conservative brick and mortar giants who are too old school and rely on the usual references to insure their axx before they will deal with small fries like you Go join big online marketplaces like alibaba and network, spend time research and source for good manufacturers who are willing to work with you. Do necessary checks/due diligence on suppliers/ manufacturers. Remember you are buying not selling. Most people are more worried about the selling not the buying

 

I guess I should qualify my statements tradester. I do appreciate your comment though.

We are a startup and are trying to not carry inventory. We don't have a physical location so really we are looking for manufacturers who offer direct shipping to customers (which is most big name manufacturers). However, places like Alibaba etc are filled with Chinese manufacturers who do not have locations in the U.S. and do not ship directly to customers for obvious reasons.

Currently, we are working with Tosh furniture and VIFAH furniture but that's it. We've been rejected by places like Modloft and South Shore furniture and the rejections keep on coming. Are there any other places that people find leads which are U.S. based?

Thanks!
Supersonic Emporium

 

Have you tried these dropshipper sites
http://www.dropshippages.com/usa_dropshippers/furniture-21-1.html
http://www.dropshipforum.com/community/
http://www.wholesalecentral.com/Dropshippers.html
There are scammy online dropshippers so beware and do necessary due diligence.
Starting a startup is not easy but is rewarding learning experience- just keep plugging and don't give up easily. Every startup gets rejections/ frustrations. Show me a startup that does not face obstacles and I will show you a liar.
Good luck!

 

Yes I have actually, and it always seems as though people are trying to market sales (for instance esources from one of your links) instead of actually trying to provide leads to manufacturers. Or, as you said a lot of these drop shippers are scams and are just middlemen.

The other problem comes from the free directories like your 3rd list. They are basically full of garbage or Chinese manufacturers who don't actually dropship but decide to list themselves in that category anyway. I've called several different businesses only to find out they don't drop ship... Then why do you place yourselves on drop ship lists in the first place!? How frustrating.

Anyway, thanks for trying tradester!

Thanks,
Supersonic Emporium

 

First thing to do would be making a list of suppliers with contact info. Check this article to see how you could do it free http://www.webcosmoforums.com/general-business/17444-product-sourcing-finding-suppliers-free.html Or if you have money you can try services like wordwidebrands and such, but I think that wont be necessary.

To be able to land an account you need to show them something to prove your existence as a business. Usual brick and mortar approach works best, but online store works pretty good these days. If you gonna fetch them with your website make sure you make look very professional.

When you talk to them query/discuss with them:

• if they would dropship
• if there is any dropship fee
• which locations they would ship to
• return policy
• tell them you will be paying with credit card as you order them

I think this would help you. I personally tried this approach, this worked pretty good for me getting new accounts.

 

Oh trust me, we've done everything that's necessary to prove we are a professional business including giving them our business license/reseller's permit, banking information, and our website which (in my opinion) looks far better than some of the terribly done startup furniture sites I've seen which are allowed to sell some of the furniture we are looking for.

It's this terrible circular argument with the companies that are basically saying "Well, you can't do business with us unless you're already doing business with other reputable companies." If they all say it, then we aren't going to be able to sell for them. I think the dumbest thing about it is that I am LOOKING TO BUY from them! They have nothing to lose! Isn't their main goal to sell things? Well I'm buying!

The other really dumb thing about it is that they are wholesalers and do not sell to the public right? Unlike retailers, their customers are not an "endless source" of new public customers. Their "new customers" come from new businesses. So why would they reject new legit startup businesses? I honestly do not see the logic here.

Sorry for the rant haha!

Thanks,
Supersonic Emporium