Not everyone has the capability to do whole sale to other retailers. But those who do will enjoy its benefits such as a significant and fast increase in sales. However, it won’t be easy because to succeed on it, you will have to give effort and have the willingness because you are selling more than one product meaning its difficulty is also multiplied.
You must keep in mind that in wholesaling, you will be talking with other retails about a bulk of products. So, you or the one you will be assigning to do the talking must have excellent communication skills to easily set you a deal. Know that whole sale also comes with a discounted price, as your buyers will also sell and must earn from the product that they will offer to the general public.
Aside from this, great planning is also a must and the use of technology might be mandatory as wholesaling was already revolutionized by more successful brands. Nonetheless, wholesale still offers consumers a convenient shopping experience. It just that it’s not always physical as e-commerce has also boomed in the recent years. So buyers are now into the platforms that are easier to access everywhere and anytime in the world and what medium can help achieve that goal better than online?
This means that aside from the traditional wholesale businesses that are enclosed on a large brick-and-mortar department store, it can also take place in online marketplaces or through smaller boutiques.
What’s good in wholesaling is that you won’t have to worry about how you would survive with the marketing costs needed for each consumer because you are dealing with other businesses which could do that for you. Instead, you can focus attracting them instead because after that, the costs of acquiring individual buyers would be their problem and not yours anymore. But it won’t be necessarily hard for them as it is for you because they might already have an established and solid customer base. Instead you can leverage your business into their established brand and share its benefits. This way you could also expand your business instead of starting from scratch.
In short, it is mutually beneficial as it gives the retailer a new, often complementary, product to sell without investing so much time and money in research and development while the wholesaler saves resources on marketing by gaining direct access to an existing customer base.
Now in your part, it is essential for you to come up with a pricing strategy that is not only favourable to you but also for the retailer which is now your partner. This is not only to attract them but also to keep them from looking for better deals though it will be inevitable at times. Most commonly, it’s at 50% but it can also depend on you.
What you have to make sure is that if you are planning to have an online wholesale store; it must be protected as it would also contain your sales report as well as your client’s information because now that you are now linked, it’s now part of your responsibility to protect not only your business but also theirs.