How to Verify a US Wholesale Supplier Before You Trust Them

A supplier's website looks professional, the prices are good and the sales rep replies within minutes. They want a first payment to open the account. Before that money leaves your account, it is worth knowing exactly what you can check for free, what each check proves, and, just as important, what it does not prove. A business can be properly registered and still ship late, send the wrong item or disappear in a year. Verification is about narrowing the odds, not removing risk.

This guide sets out a six-step process, using official US sources, that takes a few hours before the first order and mostly costs nothing. At the end is a table of what each check does and does not tell you, so you do not mistake a clean search for a guarantee.

1. Why a supplier check is part of eBay compliance

Verification is not just caution. It protects your account. eBay's dropshipping page (checked October 2026) says dropshipping, where you fulfill orders directly from a wholesale supplier, is allowed. It does not allow listing an item on eBay and then buying it from another retailer or marketplace that ships it straight to your customer. It also says you remain responsible for the safe delivery of the item, for delivery within the time stated in your listing, and for the buyer's overall satisfaction. Enforcement can include removing listings, warnings, restrictions and suspension.

So a supplier who is really a retail storefront breaks the rule, and a supplier who is genuinely wholesale but unreliable breaks your delivery promise. You need evidence of both: that the business is what it says it is, and that it performs. Our guide to eBay's dropshipping policy covers the policy side, and our supplier guide and the supplier directory cover where to look.

2. Step one: find the business on a state registry

Entities such as LLCs and corporations are formed under a state's law and file with a state office, commonly the Secretary of State. The SBA runs a state registration lookup page where you pick a state or territory and follow the link to that state's official registration website. Many of the links go to Secretary of State pages; others go to a state commerce department or, for the District of Columbia, the Office of Tax and Revenue.

When you search, collect these items and write them down:

• The exact legal name, and whether it matches the name on the supplier's website, invoices and bank account.
• The entity type and status (for example, active versus dissolved or revoked).
• The formation date. A very recent date is not proof of anything bad, but it tells you the supplier has no track record.
• The registered agent and the listed address, which can differ from where goods ship from.

What a registry listing does and does not prove

The National Association of Secretaries of State (NASS) states in its report on business filing fraud that in most states the Secretary of State's business filing role is ministerial, and the office serves only as the official repository for business records. As long as filing requirements are met, the office may have little or no authority to question or reject a document. The same report describes cases where someone submits an unauthorized filing to change an existing legitimate business's registration details, such as its address, officers or registered agent, and then uses the altered record for fraud.

Two practical points follow. First, a registry entry confirms that a filing exists, not that the business is honest or has stock. Second, the details can be copied: a scammer can quote a real entity's name. So do not stop at "I found them". Compare the registry's address and officers with the supplier's contact details, and call the number published on the registry or on a source you found yourself, not just the number in an email.

Worth remembering: if the business name in the registry, on the bank details and on the invoices are three different names, ask why before you pay anything.

3. Step two: ask for tax and permit details

EIN and Form W-9

The IRS describes an EIN as a federal tax ID number for businesses, tax-exempt organizations and other entities, free from the IRS. The page does not say an EIN proves a business is legitimate or licensed, and it describes no public EIN lookup tool. It does explain how a business can confirm its own number: by an entity transcript, a CP575 notice, or Letter 147C (EIN Previously Assigned), which the business can obtain from the IRS. A business that is real and organized should be able to produce one of these.

Form W-9 is the IRS form used to request a taxpayer identification number and certifications. The IRS instructions say a requester is anyone required to file an information return. They do not address a person who is simply buying goods, so we cannot tell you that you have a duty to request one. You can still ask a supplier for a W-9 as an identity document, since it states the legal name, business type, address and TIN. Do not email or post a W-9 around casually: it carries a tax ID, so store it securely and send it only to the party that needs it.

State seller's permit

A supplier that makes taxable sales may hold a seller's permit from a state revenue department, and you can ask for the number. The tools differ by state. California's CDTFA has a "Verify a permit, license, or account" search and an automated phone line, and Texas has a Sales Tax Permit Search that confirms whether a permit is active. Neither tells you that the supplier is reliable; it confirms the registration exists and is current. If your supplier's state has a similar tool, use it.

Your resale certificate

The reverse request is likely: the supplier will ask you for a resale certificate so they do not charge you sales tax on goods you resell. California requires a valid certificate to include the purchaser's business name and address, a seller's permit number (or an explanation of why none is required), a description of the property, a statement that it is for resale and a signature. A date is expected too, although CDTFA says an otherwise valid certificate is not invalid solely because it is undated. The words "for resale" must appear, and "exempt" or "nontaxable" is not acceptable. In Texas, a customer's permit number alone does not replace a properly completed resale certificate, and the seller should keep certificates for four years. Our guide to sales tax nexus and marketplace facilitator laws explains how drop shipments and resale paperwork interact.

4. Step three: look for outside evidence

The FTC's guidance on bogus business opportunities suggests checking out a seller with your local consumer protection agency and searching the company's name along with words such as "complaint" or "scam". It also warns that no complaints does not necessarily mean a company is legitimate, and that scammers have been known to post phony testimonials online. The routine below adds checks of our own, such as your state Attorney General and the Better Business Bureau.

Turn that into a short routine:

1. Search the exact business name with "complaint", "reviews" and "scam", and read beyond the first page.
2. Check your state Attorney General's complaint pages and the Better Business Bureau listing.
3. Confirm the physical address and phone number independently. Look up the address on a map. A residential address or a mail drop is not disqualifying for a small wholesaler, but it should match what the supplier told you.
4. Call and ask a specific question about a product, such as a case quantity or lead time. A real wholesaler's staff can usually answer.
5. Ask for trade references from other resellers, and choose whom you speak to. The FTC cautions that some promoters name "insiders" who give glowing but bogus recommendations.

5. Step four: separate suppliers from opportunity sellers

A frequent problem is that the person selling you "access to wholesalers" is not a wholesaler at all. They sell lists, memberships, coaching or ready-made stores. The FTC's Business Opportunity Rule requires sellers to give you a one-page disclosure document at least seven calendar days before you sign a contract or pay anything (16 CFR 437.2). It must identify the seller, list certain lawsuits, state any cancellation or refund policy, say whether an earnings claim is made and provide references. If the seller claims you can make money, there must be a separate earnings claim statement with specifics and a way to request proof. The FTC says that if a seller's statements contradict what is in the disclosure document or earnings claim statement, that is a sign of a shady operation to steer clear of.

Those FTC pages concern business-opportunity sellers, not ordinary wholesale distributors of goods, so do not expect a normal supplier to hand you a disclosure document. But if what you are paying for is a package, a course or a "done for you" store, the rule is the benchmark. Our guide to eBay dropshipping scams and red flags goes further.

Payment and pressure

On how scams collect money, the FTC's scam-avoidance page lists cryptocurrency, wire transfer services such as Western Union or MoneyGram, payment apps, gift cards, and checks that later prove fake as common requests. It also says scammers push you to act before you can think and that honest businesses will give you time to make a decision. A supplier that refuses a normal trade account, a purchase order or a card payment in favor of one of those methods deserves a hard stop.

6. Step five: get the terms in writing

Once the business checks out, agree the working terms before the first order. Your list should cover:

• Prices and minimums. Unit cost, any minimum order, and how price changes are notified.
• Stock accuracy. How you will learn that an item is out of stock (a feed, a portal, an email) and how quickly.
• Handling and shipping time. The supplier's stated dispatch time, carriers and cut-off times.
• Packaging and paperwork. Whether parcels ship plain, without the supplier's pricing or contact details, and what name appears on the packing slip.
• Returns and damage. Who pays return freight, the window to report damage, and how credits are issued.
• Payment terms. Card, ACH or invoice terms, and what happens if an order is canceled before dispatch.
• Termination. Notice period and treatment of open orders.

The shipping time deserves the most attention, for a legal reason. The FTC's Mail, Internet, or Telephone Order Merchandise Rule covers merchandise ordered by mail, online or by telephone. If you state a shipping time you must be able to ship within it, and if you state none you must be able to ship within 30 days of receiving a properly completed order. The FTC says you need a reasonable basis for the claim at the time you make it, including supply and fulfillment capacity and adequate records. If you cannot ship on time, you must offer the customer the choice to agree to the delay or cancel for a prompt refund. Your supplier's real dispatch speed therefore sets what you can safely promise, and eBay says you are responsible for delivery within the time in your listing. The chain is: supplier promise, your listing promise, your buyer's expectation. Our fulfillment workflow guide shows how to manage it day to day.

7. Step six: place a sample order

A sample order is the cheapest evidence you can buy. Treat it as a test with a scorecard, not a casual purchase:

1. Order to your own address as if you were a customer, using the same method you would use for real orders.
2. Record the times. Order placed, confirmation received, dispatch, tracking active, delivery. Compare with what the supplier promised.
3. Inspect the parcel. Condition, protection, labels, whether any supplier branding or pricing appears, what the packing slip shows.
4. Inspect the item against the listing description and photos you plan to use.
5. Test the service. Ask a question and report a pretend problem to see how they respond. Try a small return to learn the real process.
6. Check the invoice. Does it match the registry name and the details from step one?

Start small, and repeat a few weeks later to test consistency. If the supplier is slower than promised, adjust your handling time or walk away.

Only after this should you connect the supplier's products to listings at scale. Tools that watch supplier price and stock help you keep promises over time; Sellhelm, the eBay dropshipping software this blog belongs to, does that on your own PC, but no tool replaces choosing a supplier carefully.

8. What each check proves, and what it does not

No single row is enough. Together they cover identity (registry, tax details), standing (permit, complaints) and performance (terms, sample).

9. Keep checking

Verification is not a one-time event. Re-check the registry status each year, watch dispatch times on every order, keep a second supplier for your best sellers and know what you will do if the first one fails. Our guide to what to do when a supplier goes out of business sets out that plan.

10. Common mistakes

• Treating a registry listing as an endorsement. It records a filing; in most states the office does not verify the contents, per NASS.
• Paying first, checking later. The FTC says honest businesses give you time.
• Accepting unusual payment methods. Wire transfers, payment apps, gift cards and cryptocurrency are the FTC's listed scam payment requests.
• Confusing a list-seller with a supplier. A paid directory or coaching package is not wholesale inventory.
• Copying the supplier's lead time into your listing without testing it. eBay holds you to your listed delivery time.
• Skipping the resale certificate. A supplier may be required to charge you sales tax without a valid one.
• Sending your W-9 to anyone who asks. It carries a tax ID.

Sources and how we checked

Facts in this guide were checked against these official pages in October 2026. Rules and figures change, so confirm anything that affects a decision. This is general information, not legal or tax advice.

• Dropshipping and product sourcing (eBay)
• State registration lookup (U.S. Small Business Administration)
• Business Filing Fraud report (National Association of Secretaries of State)
• Employer ID Numbers (Internal Revenue Service)
• Instructions for the Requester of Form W-9 (Internal Revenue Service)
• Publication 103, Valid Resale Certificates (California Department of Tax and Fee Administration)
• Sales and use tax FAQs: resale certificates (Texas Comptroller of Public Accounts)
• Bogus Business Opportunities (Federal Trade Commission)
• Vetting a business or coaching opportunity before you buy in (Federal Trade Commission)
• How To Avoid a Scam (Federal Trade Commission)
• 16 CFR Part 437, Business Opportunity Rule (Electronic Code of Federal Regulations)
• Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule (Federal Trade Commission)

Questions people ask