Bagging first supplier - Proof of Company?

noz85

I've been looking to start an ebay shop for a while and found a a few suppliers that I would like to begin working with. However, to be accepted by these suppliers I need to provide evidence of a company letter head (seems easy enough to create one) and also a proof of company.

What is 'proof of company'? Some places have identified this as proof of previous accounts comings and goings between yourself and existing suppliers that you are already working with - but if you're just starting out and you don't have a network of suppliers yet, how do you get your first one without this evidence?

InsideInsurance

Its not an official term and so ask them what they want. As a sole trader there legally is no separate "company" there is just you and philosophers have pondered over how we can prove that we exist for centuries.

DKLS

I found by visiting the supplier in person, and paying for any initial orders in full and not asking for a credit account worked wonders at getting through the door and didn't have to bother with Letterheads or other gumpf.

paddyrg

Suppliers want to sell stuff at least as much as you want to buy it. Pay in advance and you won't find many that actually care, as long as you're doing volume.

noz85

So basically just give them a call and explain my position and discuss it with them.

DKLS

noz85 wrote: »

So basically just give them a call and explain my position and discuss it with them.

Pretty much yes, arrange a visit, discuss lines, minimum orders Ts and Cs etc etc and ask for a cash account to be setup and go shopping, as above they want customers especially those who pay on order/delivery.

Pennywise

paddyrg wrote: »

Suppliers want to sell stuff at least as much as you want to buy it. Pay in advance and you won't find many that actually care, as long as you're doing volume.

If only that were true across the board. There are many suppliers who are very picky about who they sell to and who sells their goods. For example, some suppliers will only sell to businesses with an established bricks & mortar High Street shop, and refuse to sell to internet only retailers or discount shops. They do this so as to maintain a quality network of retailers which they believe improves the brand. So to the OP it will really depend on the supplier as to their philosophy - as rightly said, some suppliers will sell anything to anyone but others will be picky. All you can do is talk to them.

Atidi

noz85 wrote: »

I've been looking to start an ebay shop for a while and found a a few suppliers that I would like to begin working with. However, to be accepted by these suppliers I need to provide evidence of a company letter head (seems easy enough to create one) and also a proof of company.

What is 'proof of company'? Some places have identified this as proof of previous accounts comings and goings between yourself and existing suppliers that you are already working with - but if you're just starting out and you don't have a network of suppliers yet, how do you get your first one without this evidence?

Presumably you are asking the supplier for credit? This is typically the reason any seller has such interest in the buyer.
In which case they are presumably looking for a basis to lend to you, so evidence of an established business and usually references from existing creditors are requested.

The other possibility is that you have approached a supplier with a very up-market brand, so are attempting to protect that brand image. They don't want any Tom, !!!!!! or Harry selling their clobber at knock down prices, but will only supply to established retailers who meet their profile.

If you are just starting out, then you do just as others have done in the past - you keep away from the designer labels and do pay up front for your stock (or use of a dropshipper might also be modern possiblity when selling online).

paddyrg

Pennywise wrote: »

If only that were true across the board. There are many suppliers who are very picky about who they sell to and who sells their goods.

Oh yes, agreed, but those guys aren't going to change their mind for a sole trader with 3 months trading experience, they'll be looking for a deep and long financial history.

CKhalvashi

DKLS wrote: »

Pretty much yes, arrange a visit, discuss lines, minimum orders Ts and Cs etc etc and ask for a cash account to be setup and go shopping, as above they want customers especially those who pay on order/delivery.

When OP goes, it's also worth taking a business card to show.

My last lot were about £120 + VAT for 1000 (in a 2 language/alphabet split order) from a local supplier, and I know that online retailers are cheaper than that figure. I just prefer to buy local.

CK

DKLS

CKhalvashi wrote: »

When OP goes, it's also worth taking a business card to show.

My last lot were about £120 + VAT for 1000 (in a 2 language/alphabet split order) from a local supplier, and I know that online retailers are cheaper than that figure. I just prefer to buy local.

CK

True they are useful to have and printing is the one thing I don't outsource these days I like to keep that local and there is a great print broker locally.