Comparison

Buy From the Brand Directly vs a Wholesaler: K-Beauty Guide

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SEONGWOO GLOBAL Published

Contents · 6 sections
  1. Buy from the brand directly vs a wholesaler: comparison table
  2. Why buying direct is hard
  3. When a wholesaler makes more sense
  4. When going direct is worth trying
  5. Questions to ask before you order
  6. Where SEONGWOO GLOBAL fits

Whether to buy from the brand directly vs a wholesaler depends on how high the entry bar is and how much brand support you need. Buying direct gives you the brand’s own pricing, marketing material and support, but most Korean brands already work through appointed distributors in each country, so a new buyer often cannot open a direct account at all.

A wholesaler lets you buy several brands from one supplier in one shipment, but you will not get the brand’s own after-sales and marketing support.

If you are a retailer or online seller bringing in K-beauty for the first time, the table below helps you decide. Order terms and unit prices differ by brand and supplier, so they are not covered here.

Buy from the brand directly vs a wholesaler: comparison table

ItemBuying direct from the brandBuying through a wholesaler
Entry barHigh: business plan, sales channels and expected volume are reviewedLower: account checks, then ordering
Country agreementsBuyers are often referred to the existing local distributorSupply within the territories the wholesaler can serve
Brands per supplierOneMany
Order sizeUsually large units set by the brandMixed brands and SKUs in one order
PricingBrand supply price; pricing policy usually enforcedWholesaler’s terms; relationship to brand policy varies
Marketing and trainingBrand assets, training and promotions possibleLimited, except for brands the wholesaler distributes
After-salesThe brandThe wholesaler handles it first
Exclusivity and targetsTerritory exclusivity and sales targets may be contract termsUsually none

Why buying direct is hard

It helps to look at how brands build export sales. The U.S. International Trade Administration’s guide to sales channels splits exporting into direct selling, which demands significant management time, and indirect selling through agents, distributors or wholesalers. Many brands therefore hand each country to a distribution partner rather than serving every small buyer themselves.

Country distribution agreements often include territorial exclusivity and sales targets. The ITA’s Hong Kong and Macau distribution guide, for example, warns suppliers against granting exclusivity too early or over too large a territory, and suggests sales targets and termination terms in the contract.

Once such an agreement exists, a brand that sells directly to another buyer in the same country risks breaching it, so enquiries are commonly passed to the local distributor.

When a wholesaler makes more sense

  • You want to test several brands: buying a mix lets you see what sells before committing to one brand’s full range.
  • Your country has no distributor yet, or you are still small: a wholesaler is realistic before you can pass a brand’s partner review.
  • You want one shipment and one set of export documents: ordering brand by brand means separate freight and customs clearance for each.

Vet the wholesaler with the same care: evidence that the goods are genuine, verifiable company registration, and the ability to prepare export documents. How genuine goods can still reach you through different channels is covered in parallel import vs authorized distributor.

When going direct is worth trying

  • You plan to build one brand over years and already have the sales channels for it.
  • The brand has no official partner in your country yet.
  • You can commit to the sales targets and marketing investment a brand usually asks for.

Questions to ask before you order

Whether you approach a brand or a wholesaler, these questions are worth settling before the first order:

  1. Does this brand have a distributor in my country, and if so, how do your goods differ from theirs?
  2. Are the goods the Korean domestic version or an export version, and does the label meet my market’s rules?
  3. Which export documents can you provide, such as the commercial invoice, packing list and certificate of origin?
  4. If cartons arrive damaged or short, how quickly must I report it, and who is responsible?
  5. Which payment method and Incoterms® rule will apply?

Specific answers that the supplier is willing to put in the quotation or contract are worth more than verbal assurances.

Where SEONGWOO GLOBAL fits

SEONGWOO GLOBAL works in both ways.

  • Distributor brands: PINKWONDER, Arocell, Carenology95 and irecipe are supplied as Official Distributor, through a route agreed with each brand.
  • Featured and other brands: REJURAN, Anua, Beauty of Joseon, VT and the other brands we handle are supplied on wholesale terms: stable supply of genuine Korean cosmetics from Korea.

Each brand’s arrangement is shown on our brands page.

The next decision is where you place the order. See B2B marketplace vs direct supplier and how to choose Korean skincare to sell.

Related reading: Parallel import vs authorized distributor · B2B marketplace vs direct supplier · How to choose Korean skincare to sell

Site pages: Brands · FAQ · Contact us

See also: Ways to sell overseas

Incoterms® and the Incoterms® 2020 logo are trademarks of ICC. Use of these trademarks does not imply association with, approval of or sponsorship by ICC unless specifically stated above. The Incoterms® Rules are protected by copyright owned by ICC.

Written by SEONGWOO GLOBAL

Published

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