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  • Watch out for a Refundable Deposit!

    Review the fees your wholesaler says they must charge you. If you hear ‘refundable deposit’ be on the alert. There are fees a real wholesaler will never charge. An Account Set Up Fee and a monthly account maintenance fee, for example, are certain warnings that you are talking with a wholesale scammer, NOT a genuine wholesale supplier.

    Some legitimate wholesalers may charge you a small refundable DEPOSIT on opening an account for you. Typically this deposit gets refunded when you place your first order. The important word here is ‘refundable’. A one hundred dollar deposit charged when setting up your account should get refunded to you when you place your first order of at least $100 of product.

    The deposit is actually a valid charge. The wholesaler uses it as a deterent to online sellers who are not really serious about buying from the wholesaler. Online sellers are building a reputation for being ‘Wholesale Tire Kickers’. Many eCommerce sellers set up free accounts with multiple wholesalers BEFORE they’ve even decided what they want to sell. Too often, online sellers never return to buy anything. It costs the wholesaler money to open these accounts. The deposit covers their set up costs. Online Sellers who are not serious typically avoid opening an account that requires a deposit.

    The wholesaler isn’t pricing to make money this way. It is merely a deterrent. You must check that the deposit is refundable. Typically only a Scammer requires a non-refundable account set-up fee. Beware. This is not a real wholesaler!
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