The wholesale business distribution is an essential component of the supply chain. It almost came to a tipping point during the global pandemic. Due to Covid19, customer preferences have shifted to e-commerce. Now online business-to-business marketplaces such as SeeBiz will lead.
B2B marketplaces can make wholesale distribution more profitable in the future than currently through online wholesale B2B marketplaces. However, the success of a wholesale business depends upon the adoption of technology and the resilience of the customers.
The year 2022 is pivotal for the wholesale business owners to ensure growth by transforming their business models and aligning with customer expectations. The adoption of highly sophisticated technology and responding to emerging consumer trends will determine who thrives the best in the post-pandemic economy.
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Challenges faced by wholesale business today
The emergence of e-commerce giants like Amazon and Alibaba has created tough competition in the B2B space. The wide range of products at cheap prices coupled with the fast delivery service have set high customer expectations. Consequently, the traditional wholesalers are fiercely impacted.
Disintermediation is another challenge that is impacting the wholesale business. Many manufacturers have started selling directly to retailers eliminating the wholesalers from the supply chain.
Customers find it an opportunity to secure better deals when they buy directly from the manufacturers. It’s because they offer a wider range of products than a wholesaler.
All of this demands wholesale business to adopt technological advancements to thrive better in the future.
What wholesale businesses must do to thrive in 2022?
To thrive in the competitive market, wholesale businesses need to differentiate themselves. Being a wholesaler, you might not be able to compete with these giants. What you could do is offer a better mechanism than the manufacturers who are opening new online B2B channels.
The future of wholesale distributors is challenging but by offering exceptional value to the wholesale buyers and adapting to the necessary technology of B2B marketplaces, wholesale business can thrive.
Here are a few other areas which are worth the change for wholesalers to thrive better.
1. Shifting to online B2B marketplaces
Traditionally, wholesalers buy products from manufacturers and sell them to retailers. However, the scope of this business model is limited to in-person dealings and it bars the wholesalers from approaching new marketplaces.
B2B Ecommerce marketplaces are a relief for the wholesalers seeking to thrive in the fierce competition and expand their network. Be it a small or large business, the transition from offline to online wholesale store comes with great benefits and higher chances of survival.
For that, the online B2B e-commerce marketplaces make your ideal choice.
Furthermore, as the customers’ preferences have greatly shifted, moving online will outweigh the risk of losing customers.
2. Adding value
The e-commerce giants like Amazon and Alibaba may have a broader customer base. However, you have to choose a platform that adds more value to your B2B dealings. This means you should consider the e-commerce platforms that offer value to you and your target customers.
For example, when multiple sellers on Amazon offer a single product, it becomes hard to tell which product is high quality. You can neither judge which one is offered by a reliable manufacturer. While on the other hand, if you choose a platform, you can offer a curated selection of products based on specific qualities, prices, etc. These factors can appeal to the specific needs of wholesale buyers.
Thus, to stand out from the competition, you can offer something valuable which gives convenience to the wholesale buyers.
There is no doubt that electronic shopping will be dominating in the future and competition is increasing for the wholesale business. As a wholesaler, you need to offer as much convenience to your customers as possible and it is only possible through technology.
By offering accuracy, better inventory management, and speed optimization, wholesale distributors can stay competitive. For that, upgrading systems with new technologies is very important.
By adopting digital technologies, it becomes easier for the wholesalers to streamline the sales process. On the other hand, the integration of technology will give you insights into the customer data which will help you track your success.
By incorporating technology, you can offer more transparency and automation in the sales process to offer value to the customers seeking a fast and simple shopping experience.
4. One-stop Shop
In order to stay ahead of the competition, the wholesalers need to transform their business model. They need to become a one-stop-shop for all.
Wholesaling is different today as it was a decade ago. Gone are the days when your products used to be piled up in a warehouse. Now the process of finding new customers, selling them, and retaining them is much simpler.
The wholesalers of today have become service providers by displaying products on marketplaces. It’s for tailored offerings for vendors, distributors, and retailers.
The idea of wholesale marketplaces is to buy and sell on the same platform. Through this, wholesalers can expand their network which will result in the form of increased sales.
Implementing the above-mentioned changes will ensure that your wholesale business survives in this fast-paced B2B marketplace. So, what are you waiting for? Take the necessary steps and join any growing e-commerce platform to become a leading wholesale distributor.