How E-commerce is Shaping the Wholesale business | Modernizing Wholesale Business 

Wholesale business, As most of us are familiar with, refers to two possible business models. A business may buy goods in large quantities directly from manufacturers, warehouse them, and resell them. Or wholesale may refer to businesses that produce their own products and sell them directly to retailers, who then sell products to the end user.

Are you an established wholesaler considering being part of the wholesale marketplace? The benefits are clear: high order volume, sustained profit margins, less marketing spending, less handling time & cost involved. 

Having said so, running a wholesale business has never been an easy cup of tea. With an increment in fuel prices, inflation, constantly changing consumer behavior and several other factors, wholesale businesses, and B2B startups are likely to face their own set of challenges.

Now, there is a popular saying that every set of challenges comes with an opportunity, an opportunity to solve the problem, or even an opportunity to create something new altogether. So the question is What’s new for us? The wholesalers.

E-commerce in Wholesale business

What’s new is the rise of e-commerce in Nepal. And though it may sound like a pretty far-fetched idea for a traditionalist, it is probably the next big thing that changes the shape of all B2B sectors in coming years. Though the Covid-19 pandemic did harm the economy, however, it has also laid down the foundation for e-commerce trends across the nation. Now, isn’t that an opportunity?

As a wholesaler, an interesting thing to note is that the rise of e-commerce is now extending into all forms of scale which are ultimately impacting how wholesalers operate. Ecommerce customers are shaping the way everyone buys the product, thus bringing a major shift in consumer behavior. Now didn’t we address it as a challenge? Turns out to be an undisputed opportunity.

With end-users increasing demands for high-quality service and faster delivery, it is cricial for retailers and ultimately wholesalers to re-invent themselves for good. In other words, B2B is facing B2C (Business to Consumer) customer service demands to which they have to adapt to gain a competitive advantage.

So, wholesalers need to adapt and understand how e-commerce is creating new demands for their business. Now,  without further due, let’s dive into how modern wholesalers and distributors need to respond to rip out the benefits of the e-commerce marketplace.

1. Get a modernized Website

Yes, gone are the days when digitization in marketing and sales, and branding were the buzzwords for the B2C marketplace exclusively. With online sales driving the new sale, traditional wholesalers are faced with new competitors working through the digital arena. You as a wholesaler can provide everything your customers need through a website.

Imagine your bulk product catalog going digital with your potential buyers able to scroll down your high-quality product images, color options, product description, specific offers, and deals like clearance or free shipping on large orders.

Take a look at the websites of Amazon and eBay. In the apparel sector, have a look at our website of Sagun-Readymade.

2. Wholesalers face Retail service demand

This screenshot from Sagun ready-made shows a familiar yet significant feature that wholesale businesses need to understand the benefits of.

This little chat button (chatbox) puts the visitor in touch with live agents. It is a great tool that wholesale businesses can use to provide additional customer service which was once predominantly part of the B2C environment.

B2B buyers are no different from B2C (Business to Consumer) buyers when it comes to searching for products online. Buyers are active 24/7, thus customer service needs to step up and make themselves available 24/7 for the best results.

Queries like shipping dates, size charts, refund policies, etc can be easily automated for new clients. Similarly complex questions like production schedule, availability based on volume, carrier requirements, shipment options, and minimum orders can be forwarded to live agents or business email.

3. Challenges of Shipping for modern Wholesalers

With B2B clients starting to look for more immediate shipping options, inventory management has become more and more complex. The main reason being responding to customers’ demands as a wholesaler changes how your warehouse operates.

Furthermore, there is no doubt that your clients want a wide range of products fast in this ever-changing landscape. Thus it becomes crucial for wholesalers to have the right partnerships and capabilities to meet the demands.

This might mean partnering with the right manufacturer for more direct shipping and working with a distributor that understands a particular consumer market and your ever-growing needs.

4. Challenge of Warehouse Management 

As a B2B wholesaler, your ability to scale operations is crucial for survival. Having said so, when asked several Garment wholesalers, almost 50 percent of them addressed warehouse management as one of the most prevalent business challenges especially one operating manually.

Scale creates a disorganized warehouse. Filling higher orders, adding new product lines, and expanding into niche markets usually compound the work of your warehouse team. To tackle this challenge, a wholesaler needs to restructure its operations in both workplace and physical layout.

It is always advisable to keep an eye on the physical layout of the warehouse. It helps to:

–see how goods move throughout 

-understand how goods are received from your manufacturers

-know how returned products are addressed

-evaluate arrangement of inventories

Looking to scale up your warehouse management game? One of the initiatives you can take is to look for WMS (Warehouse Management System).

These are application software that optimizes warehouse procedures and operations. Inventory management, order management, analytics that recommends the position of inventory, labor management, and financial management are some of the features of a WMS.

5. How B2B e-commerce can help wholesalers 

Traditional wisdom has always held that purchasing wholesale was way too complex to be conducted online. This scenario can be easily validated from the market as there are so many wholesale suppliers and distributors in Nepal who haven’t invested in e-commerce yet.

Let’s dive into some of the benefits of partnering with the right B2B e-commerce as a wholesaler:

-increase sales while lowering spend 

Selling wholesale online is the fastest and is an evolutionary way to expand your B2B company.

If you’re a manufacturer, selling in bulk can help you increase product volume while lowering your cost-per-unit and  increasing your profit margin. Furthermore, fulfillment expenses can be reduced by shipping in bulk to fewer clients.

-helps to explore and enter a new niche 

Moving to a new country or region is fraught with logistical difficulties. You’ll also be promoting to a fresh group of people who have never heard of you before.

As a wholesaler, teaming up with B2B e-commerce, you can take advantage of their supply chain to reduce risk and set up costs. By gaining access to the retailer’s current client base, wholesalers can also save money on marketing.

-improves the buying experience of your clients. 

According to Demand GenReport, 67 percent of B2-B buyers desire quick access to wholesale pricing. Another 64% of respondents wanted fast access to content without having to fill out registration forms. Furthermore websites that addressed specific industry demands influenced a staggering 66% of purchasers to make decision.

Ecommerce can assist wholesalers in anticipating the demands of their customers. It can help customers with their research and ensure that they have easy access to content throughout the buying process.

Read also:

An Overview of Textile and Apparel Industry of India & China