Wholesale Ecommerce: What is It and How to Start?

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Wholesale Ecommerce: What is It and How to Start?

Let’s put the big question out of the way first: what is wholesale Ecommerce? This is a method of selling bulk products to retailers. Afterward, that retailer puts your goods on their website and sells them on your behalf. You and they both share in the profits. Ecommerce stores offer discounts on bulk orders as enticements to partner with other retailers.

Using this method, you can sell directly to your end customer, while increasing the ways your product will be accessed. Walmart, Amazon, Wayfair, and Wish are all companies that wholesale (rather than selling their own products).

Why Should you use wholesale eCommerce?

In wholesale eCommerce, products are sold to another business in bulk at a discount online. Wholesalers make money by selling their products from their eCommerce site or storefront, usually to customers at a higher price. 

There are several reasons why a business might consider wholesale, but it is not for everyone. Trying it may be worthwhile if you have any of the following reasons in mind:

Increase Your Revenue Without Increasing Your Marketing Budget: 

Normally, creative marketing is the key to increasing your audience to boost your sales. In some cases, you can find low-cost options, but, more often than not, you’ll have to increase your marketing budget to achieve a larger bottom line, which reduces profits. By selling wholesale products, you can get actual reach more people without even spending lots of time. You save money by sending your product to other retailers who handle the marketing. Additionally, many of them may cater to an entirely different demographic or geographic region than yours. All of this helps increase your sales without needing to increase budgets.

Utilize Other Brands: 

You can’t make a new customer while you’re keeping an existing one. Utilizing other popular products to sell your product solves the problem of building a larger base of loyal customers rather than trying to do it on your own. Each of them has its own loyal following that will be eager to attempt the products being promoted.

Expand your business into new markets and territories: 

Trying to expand your business into new countries and markets can be risky. Logistics (such as shipping, tax laws, etc.) can be challenging to arrange. The risk of eCommerce wholesaling is greatly reduced when you do it. In addition, your partners should have already established customer bases in your target market and can handle all the small details for you.

Reducing Your Storage Needs:

Almost many companies are selling physical products, they would have to store that product somewhere (assuming you don’t sell on-demand). Ecommerce stores provides the access to warehouses to store the products in a large Quantity, but others may have to store the product in a tiny office or even in their homes. If wholesalers sell your products, you can send them to them for storage so that you can reclaim your office space or reduce your rental costs.

Establish a Supplier Network: 

You need a supplier for your products, regardless of whether they are made off-site or by hand. It is this individual or organization who actually makes your goods (or provides the supplies to make them) that you sell. Small stores typically require just one supplier, especially if they operate only at one location. But if you plan to grow through wholesale, you will actually be able to find many different suppliers near the retailers you will be working with. Additionally, this allows you to build connections with your business partners and compare shipping costs. You may be able to get discounts and sales through these connections, as well as have alternatives if one particular supplier goes out of business.

Increasing Your Industry Knowledge:

 You increase your knowledge of the industry by cooperating with other members at different locations. Knowing more about the market will allow you to make better decisions.

How Wholesale Ecommerce Works?

In general, wholesale is done between producers (you) and retailers. In fact, wholesalers do not always sell directly to consumers. They can sell directly to other wholesalers, or sell to consumers.

In general, selling wholesale lowers the cost of doing business significantly. Bulk sales allow you to make more money per unit as you are able to get larger orders and spend less on marketing. In addition, it adds another channel to your sales mix. 

Alibaba comes to mind when we think about wholesale eCommerce. Wholesale is often viewed as a traditional sales channel with a less than ideal buying experience. Wholesale eCommerce has changed as a result of technology and changing B2B buyer behavior. In today’s retail eCommerce business environment, wholesale sales drive growth without a lot of capital investment.

When you use a B2B eCommerce platform, you can automate the process of going wholesale at a large or small scale, offer wholesale-specific pricing, and more. 

B2B Ecommerce

How B2B Ecommerce helps wholesalers?

In the past, B2B customers have shunned digital channels. That’s true. Traditionally, wholesale buying was too complex to be conducted online, which is why so many suppliers aren’t investing in e-commerce just yet.
Recent research from McKinsey indicates, however, that the role of the B2B buyer has evolved. They have been able to collect information independently due to the availability of information via digital channels. In other words, wholesalers don’t have as much influence on buying decisions in person.

Buying is made easier with the B2B

Through e-commerce as a B2B platform, wholesalers can now easily sell online and reap the benefits of the following:

Many wholesalers are uncomfortable with eCommerce because of the complex purchasing process. There are concerns about contract pricing, exclusive products, and clients with special terms and conditions preventing many companies from adopting eCommerce.
B2B eCommerce platforms can help businesses overcome these challenges and help them grow. Creating a private B2B eCommerce website where a client can find all the information they need is much easier than contacting them for information. 

Buying wholesale and distributing products online has also been made easier by eCommerce. When you optimize your website for search engines, it makes it easier for potential buyers to find you online. 

It enhances the buyer’s experience

Buyers of B2B products and services have come to expect the same level of service as buyers of B2C products. Purchasing something these days doesn’t require a sales representative since consumers have so much information at their fingertips. It is better for them if onboarding and orders are simple. 

67% of B2B buyers demand easy access to all pricing, according to Demand Gen Report. Moreover, 64% of respondents said that they needed easy access to content without having to fill out registration forms, and 66% of buyers mentioned websites that addressed specific industry concerns. 

“Don’t think that your website should appeal to the audience. Make sure you know your audience so you can tailor the experience to maximize profits. In other words, you need to know what features your customers really care about. Do they really need the bells and whistles that the average consumer would like to see? “Do they want interactive guides and tools that can help them find products, or do they just need a clean interface, straightforward pricing, and support when they need it?” – Jesse Teske, VP of Performance Marketing at ThinkWarwick

Ecommerce can help wholesalers anticipate buyers’ needs, facilitate the research process, and guarantee they have access to content during the buying process. 

B2B to B2C Ecommerce

What is B2B Ecommerce?

B2B eCommerce refers to online transactions in which both parties are businesses. In other words, a business that sells products or services to another business – its customer – would be engaging in a B2B transaction. Businesses from the B2B space come in many shapes, sizes, and complexity levels, just like every other business. Businesses of all types can benefit from them, including accounting, legal, digital, and physical products such as machinery, equipment, consumer goods, etc.

Consumers understandably shop online, yet we don’t realize that the global B2B marketplace is valued at 6 times the size of the B2C market. Global and local businesses are expected to increase their reliance on the Internet as they seek speed, convenience, and easy purchasing experiences. Traditionally offline B2B sellers will be pushed into setting up an eCommerce site, driving up the demand for B2B eCommerce platforms.

Difference Between B2B & B2C Ecommerce?

The key difference between eCommerce B2C and B2B is the customer. B2C sellers (e.g. Nordstrom, Walmart, etc.) cater to the general public, so their online experience is similar to their in-store experience.

Contrary to B2C sellers, B2B sellers don’t follow a linear path. The reason for this is that B2B customers come from different industries and verticals, each with its own needs and buying processes. An individual medical supplies distributor can sell to clinics, hospitals, or labs. Similar to this, a B2C retailer and distributor selling to a rental company can sell to a manufacturer of forklift parts.

Many similarities exist between B2C and B2B buyers, including a desire for personalization and convenience across channels. Technological advances are reshaping the fulfillment, shipping, payment, and other customer experiences for both types of customers.

Is Shopify suitable for wholesale?

Yes, You can use Shopify to sell wholesale products to other companies. In addition to selling on Handshake, you can set up a password-protected storefront and add the wholesale sales channel to Shopify. 

Where can I find a good wholesale online store?

  • Alibaba
  • DHGate
  • Worldwide Brands
  • SaleHoo
  • Inventory Source

Where can I find wholesale vendors?

In the United States and many other countries, Where you can find wholesale vendors easily on their websites. Look for a wholesale store on the website of a company whose products you want to sell, and apply for it. To find different vendors online, you can also check supplier directories. and contact them effectively.

How to Start a Wholesale eCommerce business?

A B2B (Business-to-Business) business includes distributors and wholesalers who benefit from greater buying power by buying in bulk.

Retailers usually offer these products to consumers through business-to-consumer (B2C) companies. Smaller retailers get their products from wholesalers, while larger retailers buy directly from distributors.

B2B prices are usually lower than retail prices, but a business’s success relies on moving large quantities of products.

The following steps will get you started as a wholesaler or distributor in the B2B industry:

1. Identify the right product for your audience 

If you already have an established business, you may be in a position to secure distribution rights to a related product. Suppose you own a bar and you find a distillery that produces amazing whisky in Australia. Your experience in the industry may help to convince the distillery that you will be a valuable asset when it comes to expanding their brand overseas.

On the other hand, if you’re starting from scratch, you can explore all products you’re interested in that offer distributor and/or wholesale options. Your next step is to review the requirements for selling your shortlisted products. After finding a product that’s suitable for wholesale/distribution, you can start making your wholesale business a reality!

2. Reduce your storage expenses

You will also need to manage the costs associated with keeping your inventory in order in your storage facility along with the money spent purchasing your goods. In addition to fixed costs such as rent and mortgage, variable costs are manpower and utilities required for daily operations.

Ensure your storage space is efficient to reduce costs. If you want to avoid wasting space, narrow the aisles first. You can also save time when filling orders by developing pick lists that identify the locations of every item.

Taking your business online can allow you to leverage software that generates intelligent picking routes, providing your pickers with the most efficient and shortest routes.

We hope this article helped you. You may also want to see our more article Shopify vs WooCommerce.

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