Once you receive your bids, evaluate your options. Compare each supplier to see which ones best meet your budget needs and quality standards. You should also pay strict attention to pricing, as you don’t want to choose a supplier that charges too much for its goods and cuts into your profit margin.
At this stage, you should also do another check to ensure the validity of your supplier’s bid. If you’re working with a dropship supplier or a wholesaler, you can ensure its legitimacy by requesting a product sample and ISO compliance documentation. Legally, you’re still complicit in fraud if you wind up selling products that belong to another company—even if it was your supplier that stole someone else’s products.
Once you choose a bid, communicate with your supplier to negotiate contract terms. Make sure your contract guarantees you favorable pricing that protects your profit margin. If you’re nervous about whether the contract is on the up-and-up, you can always consult a lawyer to help you parse through the legalese.
You can also sign a short-term contract as a form of trial run. That way, if things don’t work out with your supplier, you can cut ties before it does too much damage to your business.