How to Buy Wholesale for Resale on eBay (Without Getting Scammed)
Wholesale is how resellers go from side hustle ($1-3K/month) to real business ($10K+/month). But the wholesale world is full of middlemen, scams, and bad margins disguised as "deals."
This guide covers how to find real wholesale suppliers, calculate margins before you buy, negotiate better prices, and avoid the traps that burn new resellers.
What "Wholesale" Actually Means
True wholesale means buying directly from manufacturers or authorized distributors at 40-70% below retail. You're buying in bulk (usually 12+ units minimum) and reselling individually at market price.
Key distinction: If a "wholesale" site sells single units to anyone with a credit card, it's not wholesale — it's retail with a markup. Real wholesalers require a business license, tax ID, and minimum order quantities.
The Wholesale Margin Formula
Before buying anything wholesale, run this math:
- Wholesale cost per unit: What you pay
- Market resale price: What it actually sells for (check sold comps)
- Platform fees: 8-15% depending on platform
- Shipping cost: Your actual shipping cost per unit
- Profit = Resale Price - Wholesale Cost - Fees - Shipping
Target: 30%+ net margin minimum. Below 30%, the risk of returns, damage, and slow-moving inventory eats your profit.
Example: Wholesale Sneakers
Buy Jordan 4 Military Black at $130/pair wholesale (case of 12 = $1,560). Sell on eBay at $260. After 13% fees ($33.80) and $12 shipping = $84.20 profit per pair (32% margin). That's $1,010 profit per case.
Where to Find Legitimate Wholesale Suppliers
1. Alibaba (International)
The largest B2B marketplace. Best for: private label products, beauty, accessories, phone cases, jewelry, home goods. MOQ typically 50-500 units.
- Filter by "Trade Assurance" and "Verified Supplier"
- Request samples ALWAYS before bulk ordering
- Negotiate — first quoted price is never the best price
- Shipping: 15-30 days sea freight, 5-10 days air
2. Faire (US-Based)
Wholesale marketplace connecting indie brands with retailers. Best for: unique home goods, jewelry, beauty, gifts. Net 60 payment terms on first order.
3. Brand Direct
Contact brands directly through their website. Look for "Wholesale" or "Become a Retailer" pages. Best margins, most difficult to get approved. Requires business license and sometimes brick-and-mortar location.
4. Trade Shows
ASD Market Week (Las Vegas), Magic (fashion), Toy Fair (New York). Meet suppliers face-to-face, negotiate deals, see products in person. Best for building long-term relationships.
5. Liquidation (Wholesale-Adjacent)
Not true wholesale, but bulk buying at deep discounts:
- Bulq.com: Manifested lots from Target, Walmart, Amazon
- DirectLiquidation.com: Pallets and truckloads
- B-Stock: eBay's official liquidation marketplace
- 888lots.com: General merchandise lots
6. US Wholesale Distributors
- DollarDays: General merchandise, low MOQ
- Kole Imports: LA-based, general merchandise
- S&S Activewear: Blank apparel for customization
- Worldwide Brands: Verified supplier directory ($299 one-time)
How to Negotiate Wholesale Prices
- Always ask for volume pricing tiers. "What's the price at 50 units? 100? 500?"
- Request a sample at cost. Don't pay retail for samples.
- Mention competitor pricing. "I've been quoted $X from another supplier."
- Commit to repeat orders. "If quality is good, I'll reorder monthly."
- Ask about dead stock or overruns. These are often 50-70% cheaper than current stock.
- Pay by wire for better pricing. Credit card fees (3%) often get passed to you.
Red Flags: How to Spot Wholesale Scams
- ❌ No minimum order quantity — real wholesalers have MOQs
- ❌ "Wholesale" prices at retail or near-retail — check actual sold comps
- ❌ No business verification required — legitimate suppliers verify your business
- ❌ Membership fees to access "wholesale" pricing — most are scams
- ❌ Dropshipping disguised as wholesale — if they ship directly to your customers, it's dropshipping
- ❌ No physical address or phone number — verify they're a real company
Best Categories for Wholesale Resale
| Category | Typical Margin | MOQ | Difficulty |
|---|---|---|---|
| Beauty/Skincare | 50-70% | 50-200 | Easy |
| Phone Accessories | 60-80% | 100-500 | Easy |
| Jewelry (Fashion) | 70-90% | 50-100 | Easy |
| Sneakers (Auth) | 25-40% | 12-48 | Hard |
| Electronics | 15-25% | 10-50 | Medium |
| Toys | 30-50% | 24-144 | Medium |
| Clothing | 40-60% | 50-200 | Medium |
Wholesale for Whatnot Sellers
Whatnot is a goldmine for wholesale resellers because:
- Lower fees (8%) than eBay (13.25%)
- Bulk selling in live shows moves inventory 10x faster than fixed listings
- Impulse buying — live format drives higher sell-through rates
- Bundles — sell 3-5 units per buyer per show
Top Whatnot sellers are buying wholesale beauty, jewelry, and trading card lots specifically for live selling. The combination of low acquisition cost + high-energy show format = serious margins.
⚡ Selling wholesale lots on Whatnot? BundleLive tracks every sale, assigns buyers to bins, and handles bundled shipping automatically.
Try BundleLive Free →Getting Started: Your First Wholesale Order
- Get your business license and tax ID — you need these to open wholesale accounts
- Pick ONE category — don't spread thin. Master one niche.
- Research sold comps — know exactly what items sell for before buying
- Start with a small test order — 12-24 units to validate demand
- List on multiple platforms — eBay BIN, Whatnot shows, Poshmark, Mercari
- Track everything — cost per unit, fees, shipping, actual profit per sale
- Reorder winners, drop losers — double down on what sells
Bottom Line
Wholesale is the bridge from hobbyist to business. The margins are thinner than thrift store flipping, but the scalability is unlimited. Find 3-5 products with 30%+ margins, build supplier relationships, and sell across multiple platforms.
Start small, validate fast, scale what works.