I will keep this simple for anyone looking to get into the bulk wholesale cellphone business. DON'T DO IT! The business is so full of scammers, hustlers, and thieves, it is VERY difficult to make any money. Plus, margins on cellphones are nowhere near what you would expect them to be. Typically, margins average from 1%-10%. If you have made up your mind and absolutely want to get into this business, then please read the following advice to help you be successful in this business and to help you from getting scammed. 1. PAYMENTS Wire Transfer/TT are the standard payment method in this business. The upside is that the money is transferred from your bank account or your buyer's account very quickly, and it arrives to the seller's account quickly as well. The down side is that if the supplier/seller you or your buyer are paying IS a scammer, you will likely lose the money you transfer to them. This is why it is vital to verify any and all suppliers prior to doing any business with them. Other acceptable payment methods are: Fly and Buy(Where you would physically go to the supplier's location and inspect their warehouse and products, then pay and leave with the merchandise), Freight Forwarding(You make a deposit to the supplier, typically 10%-20%, they forward your order to a freight forwarding warehouse near you like Pilot, you go inspect at the freight forwarder's warehouse, pay for the product, and leave with your order), L/C(Letter of Credit), and Escrow. All of these are reasonable payment options. Every supplier will offer different methods to pay for your order. 2. SUPPLIERS When checking the legitimacy of a supplier, get all their company info, and research them online prior to doing any business with them. See if they have a business that is incorporated, see if they have a Dunn & Bradstreet Number(DUNS), ask as many questions as possible, and ask for references. Any legitimate supplier, should have no problem giving you references. Anyone who says they don't give that information out, or that their customer information is private, is most likely a scammer. Just be careful and do your homework before you order from anyone. At the end of this Blog, I will give you a small list of suppliers that I have. It took me over 1 1/2 years to get this small list together, and cost me 10's of thousands of dollars to weed through the scammers. Some of the people on the list I have personally worked with, and some I haven't. 3. FAQ's TO ASK YOUR SUPPLIERS Here are the main things you need to know: MOQ(minimum order quantity), brands and models they offer, accepted payment types, delivery times, are the phones authentic new and factory sealed, wholesale prices, how the phones will be delivered, which shipping company will they use, will they provide tracking numbers for your order(s), etc. 4. SCAMMERS Scammers are everywhere in this business. Every country, every city in the world it seems like. Anyone you are considering ordering from, should almost always have a company email address, not a gmail or yahoo email address. Any supplier who says they accept Western Union or Money Gram is a 100% GUARANTEED SCAMMER! If the price of a product seems too low, then it probably is. People offer products that they don't even have in stock all the time at ridiculous prices. Always check everything out, and check everyone out. Also, try not to deal with other brokers. Usually they don't have all the information you need about whoever they are getting the products from(if they can even actually get it), prices are wrong, they take their time, they jack-up the prices so there is no profit to be made, and they don't usually do their research well enough on their supplier to know for a fact that they can actually deliver. Here are a few known scammers to stay away from: - Sebastian Alverius of ACI/Alverius and Company/MobileNiq - Dave Novy - Jon Santosuosso - Eddy Investments 5. MISCELLANEOUS When starting out, you don't have to have a website for your business, and you will find that most suppliers don't either. That's why it is so hard to find them to begin with. All you really need is a D.B.A. License which you can obtain from your local County/City building. Mine was around $12. You go there, fill out a short form, including deciding what you want to call your company, then you are good to go. You should also set-up a bank account in your D.B.A. company name, to keep the money coming in from your business separate from your personal finances. Plus, when sending or receiving wire transfers/TT, your buyer or supplier will see a business name instead of your personal name. It looks a lot more professional. Another thing you may want to consider is getting a Tax ID#/EIN from the IRS if you live or are setting up in the U.S. You can go to the IRS website and get a Tax ID#/EIN for free online. If you have a Tax ID#/EIN, you can use that to open up your business bank account instead of using your social security number. You will have to file taxes for your business separately from your personal taxes though. Also, when you can, it is a good idea to incorporate to protect yourself and your business. I used incnow.com, and incorporated in Delaware(always incorporate in Delaware or Nevada) and I believe it was around $225 to get set-up, then $100 a year after the first year. Lastly, you will be acting as a broker. This means you find a supplier, you find a seller, and you make the deal happen and make a small profit for doing so. NEVER tell anyone you are a broker. Supplier's HATE brokers. Tell them you are a wholesaler. And, whenever you act as a broker, your best bet is to find an NDNC(Non-Disclosure/Non-Compete Agreement) online, and have one for the buyer to sign, and one for the seller. They both sign it, then you let the buyer pay the seller directly, and then the seller will pay you your commission. This way, if the seller is a scammer, and takes the buyer's money, you aren't liable to pay it back to the buyer. Good luck, and see the supplier list I have put together below. Company Name Contact Person Website Phone Number Desuper Wireless Jackie www.desuper.com 86-755-83622391 Computer Mechanics on Call Alex Caballeros www.cmoncall.com 1-805-506-1810 NUMAXX Dmitriy Dubovoy 1-201-849-4536 Quark Ashu www.quark-tech.com 212-629-1010 CT Miami Michael Boccino www.ct-miami.com 305-715-7171 SOL Group John www.solgroup.lt 440751567808 World Star Wireless Jon www.worldstarwireless.com 323-930-1777 Nisi International Sandeep Kedia 971553189880 Unimaven Alex www.unimaven.com 1-201-500-8040 Impact Cellular Alan Ward www.impactcellular.com 732-236-6542 iComm Sam 1-516-984-8180 Pinnacle Worldwide Jackie www.pinnacleworldwide.us 1-909-628-2200 Smith & Associates Saad 1-713-430-3957 SMK Associates Martin Borg 1-847-809-0920 Skywire Brian 1-317-658-2015 Suma Distributors N/A www.sumadistributors.com/USA 1-305-470-9429 Univargo GmbH Sebastian Korinth http://skorinth.wix.com/univargo 49163771528 Apumac LLC Michael www.apumacexc.com 1-888-248-7775 Andrew Einh Andrew Einh 1-206-779-2809 iTech Wireless Akhil 1-718-445-8600 Rainbow Concepts Ron Cantor 1-609-712-5547 *I am not personally guaranteeing the legitimacy of any of the above suppliers. Please do your homework before working with any supplier from my list, or anywhere else.