Sourcing wholesale gifts.
For new shop owners and anyone trying to understand the industry.
How the industry is structured
Manufacturers make products. Rep groups sell them on commission, typically 15–20%. Retailers source through reps, trade shows, and direct manufacturer relationships. The consumer pays for all of it through retail markup.
The resale certificate
Before any wholesale manufacturer opens an account for you, they'll ask for one. It's issued by your state's tax authority and certifies that you're buying for resale. The exact name varies by state — Seller's Permit (CA), Sales Tax Permit (TX), Certificate of Authority (NY), Annual Resale Certificate (FL). Most are free. Apply through your state's Department of Revenue.
Sourcing channels
- Major trade shows — Atlanta, Las Vegas, Dallas, NY NOW. Big selection, real product, twice yearly. Travel-intensive but unmatched for discovery.
- Regional shows — Smaller, easier travel, often category-focused.
- Sales reps — Relationship-based, but commission is built into your wholesale price.
- Online platforms — Faire, Abound, IndieMe. 24/7 access, low minimums, often skewed toward indie and handmade.
- Direct to manufacturer — Best pricing, direct relationship, but you have to find them yourself.
Most experienced buyers use a mix.
Before your first order
Before you commit to an opening order with a new manufacturer, get clear answers:
- What's the opening order minimum? Reorder minimum?
- Case pack on the items you want?
- Payment terms? When can you apply for net?
- Current lead time? Does it change seasonally?
- Free freight minimum?
- Damage and return policy?
- MAP rules online?
- Rep exclusivity in your territory?
Get answers in writing. A reputable manufacturer won't be bothered by direct questions.
Building the relationship
The first order is the start, not the finish. Pay invoices on time. Reorder consistently. Communicate what's selling and what isn't. Visit the showroom or attend market when you can. The buyer who reorders four times a year is treated very differently from the one who reorders once.
Updated as industry practice changes. Have a question we should add? Email office@gifttradedirect.com.