How to Open a Wholesale Account and Get Approved by Suppliers

You found a supplier you want to buy from, and the wholesale price sits behind an application form asking for documents you may not have. If your business is new or has no shop, that form can look like a closed door, but much of it is a set of questions you can answer once you know why they are asked. By the end you will have a document list for your market, an email you can send today, and a way to judge the terms you get back.

Why suppliers check you before they sell to you

A wholesale price is something a supplier can lose money on, so the form works as a filter. Most of what it asks traces back to one of five worries.

• Tax exposure. In the US, a seller that skips sales tax without proper paperwork can be left answering for it. In the EU, not charging VAT on a cross-border sale depends on the buyer's VAT number.
• Consumers after trade prices. They place tiny orders, need a lot of attention and never reorder.
• Brand damage. A reseller who slashes prices on a marketplace upsets every other account.
• Non-payment. A new buyer who wants 30 days to pay on a first order is asking for an unsecured loan.
• Cost to serve. Setting up an account and packing a small order cost money, so suppliers want signs of a second order.

An application that answers all five is easy to approve. You are judging them too, so before you send tax details, run the checks in how to spot a fake wholesale supplier.

What suppliers ask for in the US, UK and EU

These are the usual requests. Each supplier sets its own list and tax rules vary, so confirm your own position with an accountant or the tax authority.

United States: the EIN is not the document that matters most

An EIN is a federal tax ID. The IRS page on employer ID numbers says you need one if you have employees, owe certain federal taxes, or operate certain entity types such as a partnership or corporation, and that you can request one for banking or state tax purposes otherwise. It is free from the IRS, so don't pay a website for it.

Sales tax is a state matter. A resale certificate tells the supplier you are buying to resell, so no sales tax is charged, and the rules differ by state.

• California. The CDTFA's list for a valid resale certificate covers your business name and address, your seller's permit number (or why you don't need one), a description of the goods, the phrase "for resale", the date and a signature. Words like "exempt" don't qualify.
• Texas. The Comptroller says a customer's permit is not a substitute for a resale certificate, and that the certificate needs the purchaser's Texas taxpayer number.
• New York. Form ST-120 requires a Certificate of Authority unless you are an out-of-state business, and other states' exemption certificates are not valid for New York sales tax.

So your home-state certificate may not satisfy a supplier elsewhere. Ask the supplier which form it accepts, and ask your state agency what you need to hold.

Use a certificate only for goods you will resell. In Texas you owe tax on merchandise you use yourself after buying it on a certificate, and California lists penalties for knowing misuse on top of the tax and interest.

United Kingdom: identity matters more than a certificate

UK suppliers generally charge VAT and don't ask for a resale certificate. They want to confirm who you are. A limited company has a company number anyone can look up on the free Companies House service. A sole trader registers with HMRC for Self Assessment and has no company number, so give your trading name, address and website instead.

You must register for VAT once taxable turnover passes the threshold, which GOV.UK's VAT registration page currently gives as £90,000 over the last 12 months, or if you expect to pass it within the next 30 days. You can register voluntarily below it. Registered businesses can reclaim VAT on business purchases with valid VAT invoices. If you aren't registered, the VAT on your supplier invoice is a real cost, so include it in your margin. Northern Ireland has its own rules for goods trade with the EU, so check those separately.

European Union: VAT ID, VIES and the reverse charge

A supplier in your own country makes a normal domestic sale, so expect VAT on the invoice. Cross-border is where your VAT ID matters. Your Europe's guidance on cross-border VAT says a seller shipping goods to another EU country does not charge VAT if the buyer has a valid EU VAT number, and usually charges its own country's VAT if not. The buyer then declares and pays VAT at the buyer's national rate, and can usually deduct it in the VAT return. People generally call this the reverse charge, and you may see those words on the invoice. The guidance notes several exceptions, so check your case.

Before you apply, enter your own number in the EU's VIES checking tool. A real number can show as invalid if it isn't activated for intra-EU transactions or the registration isn't finalized. Your tax authority has to fix that, so sort it out before a supplier finds it.

Under your country's small business VAT exemption you may have no number that passes VIES, and you can't deduct VAT on purchases. Thresholds vary by country, so ask your tax office or adviser how this affects cross-border orders.

How to apply without a shop or as a brand new business

Some suppliers sell to online-only and new businesses, while others accept only physical stores, so check before you write. Lists of suppliers that work with startups and low-minimum suppliers are a good place to begin.

Get the documents above, then make up for missing history with evidence of what you do have.

• A live store, even a small one, on Shopify, WooCommerce or similar, with an About page, contact details and working policies.
• A sales record, such as a screenshot from another product line, with sensitive figures hidden if you prefer.
• An audience if you have no sales yet, such as an email list, social following or market stall schedule. Give real numbers, even small ones.
• A plan that says which products you would start with, how many, and where they fit your range.

Don't claim a shop you don't have or inflate your numbers. "We launched in March and sell online only" is a perfectly good sentence. If a supplier wants a sales history, ask whether a prepaid trial order would change that. The guide to negotiating a lower minimum has the wording.

What makes an application look credible, and an email to send

The person reading your application will probably open your website first, asking whether their product belongs there. These things help most.

• A website on your own domain with real products and a matching business email address.
• Photos of where the product will sell, such as your shelves, store listing or market stall.
• Named sales channels, including any marketplaces. Saying so now avoids a dispute later.
• Matching details. Legal name, address and tax number should agree across the form, certificate and website.

Send this when the supplier has no form, or alongside one. Replace everything in brackets.

Subject: Wholesale account application: [business name], [country]

Hello [name or team],

I run [business name], a [type of business, such as an online homeware store] based in [city, country]. We have been trading since [month and year] and sell through [website, physical store, named marketplaces]. You can see our store at [URL].

I'd like to open a wholesale account to stock [specific products], which fit our range because [one specific reason]. I expect to start with around [quantity or value], and I am happy to pay up front on the first order.

Our details:

• Legal business name and address: [details]
• Registration: [EIN and resale certificate / company number / VAT ID]
• Photos of our store or listings: [link or attachment]

Could you send your application form, wholesale price list, minimums, freight terms and any rules on online selling? If you don't work with businesses like ours, I'd appreciate knowing that too, or being pointed to a distributor who does.

Thanks, [name, title, phone, website]

Offering to pay up front removes the credit question, and the last line gets you an answer even when it is a no.

What to do when you are rejected, and the mistakes that cause it

Ask once, politely, what would need to change. The answer usually falls into one of four groups.

• Missing or wrong paperwork. Fix it and resend.
• Too small or too new. Ask what threshold they use and when to reapply. Offer a prepaid order, or ask for a distributor that handles smaller accounts.
• Territory or channel closed. They may have exclusive dealers nearby or refuse online-only stores. This is seldom negotiable, so look elsewhere through the supplier directory or the methods in how to find wholesale suppliers.
• No reason given. Wait until you have new evidence, such as more sales or a better website, then reapply and say what changed.

These are the mistakes people actually make.

• Sending one mass email to fifty suppliers with no product named.
• Applying from a personal email address, or with placeholder text on the website.
• Asking for net terms on a first order.
• Hiding marketplace plans, then being closed down when the listings appear.
• Sending a resale certificate for the wrong state or with blank fields.
• Asking only for a price list, with no sign that you are a business.

How to read the terms before your first order

Approval is the point where you check whether the deal works for you.

• Minimums. Check whether they apply per order, per item or to the opening order only.
• Payment terms. New accounts commonly pay before shipping. "2/10 net 30" means 2% off if you pay within 10 days, otherwise the full amount by day 30. On a 1,000 invoice, that is 980 by day 10 or 1,000 by day 30.
• Net terms and how credit is earned. Ask what qualifies. Suppliers commonly look for several on-time orders, trade references or a credit application. Read any personal guarantee and late-fee clause before signing.
• Freight thresholds. Free freight above a set value can change which order size makes sense.
• Returns. Check who pays return shipping, the time limit for reporting damage and any restocking fee. Slow sellers are usually yours to keep.

Worked example: a lower minimum can cost more

This example uses round, illustrative numbers. A product costs 10 per unit wholesale and you plan to sell it at 20. Freight is a flat 80 under 1,000 and free at 1,000 or more.

The bigger order adds 8 percentage points of margin but ties up 420 more cash in unproven stock. When cash is tight, the smaller order can still be right, as long as you know the cost. Add duty and tax effects with the guide to landed cost and margin, or use the wholesale margin calculator.

MAP, online restrictions and brand authorization

Many brands set rules on advertised prices or on where you may sell. Read them before you pay, and if the brand matters, get written authorization to sell it online. Some marketplaces ask for invoices or proof of authorization for certain brands, so check your platform's current rules. The legal position differs by market, so take real questions to a lawyer.

• US. The FTC's guidance says federal law judges manufacturer-imposed price programs under a rule of reason, while some state laws treat minimum price rules as illegal. Limits on where or how a dealer sells are generally legal if the manufacturer acts on its own.
• UK. The Competition and Markets Authority's advice for retailers treats policies that stop you advertising lower prices online as a form of resale price maintenance. A recommended price is fine if you can still sell at any price. Retailers can be liable too.
• EU. Supplier and reseller agreements fall under Regulation 2022/720 and the Commission's guidelines on vertical restraints. Have a lawyer read any contract that limits your prices or online sales.

How to turn a first order into a better account

The first order is the real application. Pay on the day you said you would, and if something goes wrong, say so before the due date. Report damage within the stated window, with photos. A few weeks after delivery, say what sold and what didn't.

Reorder before you ask for anything. A supplier deciding on credit wants a pattern, so after a few on-time orders, ask what it would take to move to net terms. Start small, such as net 15 or a limit equal to your usual order. Use the same moment to ask about freight or pricing at your actual volume.

Tell them when you add a marketplace or store, especially if channel rules apply.

Frequently asked questions

Do I need a registered business to open a wholesale account?

You need to show you are a real business, and what that takes varies. Sole traders and sole proprietors can qualify with many suppliers. Check your local registration duties with an adviser.

Can I use one US resale certificate in every state?

Not reliably. Some states want their own form or registration number, as the New York and Texas rules above show. Check with the supplier and the state tax agency.

Will an EU supplier always remove VAT if I give a VAT number?

No. That generally applies to cross-border sales with a number valid in VIES, and there are exceptions. Suppliers in your own country normally charge VAT as usual.

How do I see a supplier's terms before applying?

Many share them only after approval, so ask in your first email. On our site, search and company profiles with Trust Scores are free, and Buyer Pro shows contacts, minimums and trading terms. Confirm terms with the supplier, because we are not a party to any deal.

Your next steps

1. List your market, entity type and which documents from the table you still need.
2. Get the missing ones from the official source, and take VAT or sales tax questions to an accountant.
3. In the EU, check your VAT ID in VIES. In the US, confirm which resale certificate your supplier accepts.
4. Check that your website, business email, address and registered name all match.
5. Pick three suppliers and adapt the email with a specific reason for each.
6. When terms come back, work out landed cost for two order sizes before choosing.
7. Pay on time, send feedback after delivery, and ask about net terms after a few on-time orders.