B2B wholesaling is perhaps the most common type of wholesaling endeavor that occurs online. Businesses selling products in bulk to ecommerce sites and retail outlets is a normal stage in the journey a product makes from manufacturer to customer. Olympic Eyewear, a distributor of wholesale sunglasses, says that while many people think starting a wholesale business is something that requires a lot of resources, this is not actually the case. In the world of ecommerce, and with many reasonably priced wholesale products available, it is perfectly possible for private individuals to take up this venture. However, to see success you need to think like a business and go with the wholesale product that offers the best profit-making incentive for businesses.
This makes a lot of sense. After all, the whole B2B world revolves around what companies need and want and involves suppliers anticipating that demand in order to supply the goods that companies need.
What is B2B Wholesaling?
Before going onto some benefits of a B2B wholesaling venture, it is worth getting a clearer definition of what B2B wholesaling is. B2B wholesaling is a subset of the wider B2B scene, which involves commerce between firms. However, it is not only the distribution of wholesale products to retail outlets, but it can also involve the provision of those same products between the manufacturer and a wholesaler. In that sense it can be thought of as a three-part chain – from manufacturer to wholesaler and from wholesaler to retailer. All of this comes under “B2B wholesale”.
Like all wholesaling, B2B wholesaling makes a profit on account of the simple principle that units sold in bulk can be acquired at a cheaper price than the amount made when each unit is then individually sold. Because the manufacturer is responsible for the creation of the products, the work of a wholesaler is one of effective coordination, communication with clients, and the storage of an inventory ready to be shipped – often in regular dispatches.
Benefits of B2B Wholesaling
If you are just getting started in an ecommerce venture, then wholesaling can be one of the best ways to get a lucrative business going as quickly as possible. As mentioned, it is perfectly possible to get started in wholesale from scratch. You don’t need extensive resources or a huge inventory or a massive warehouse.
Here follows some other great benefits of B2B wholesaling:
Maintain a Fixed Margin of Profit
The amount of profit that can be made by selling a fixed number of goods can be determined exactly. If you have repeat orders, then profit projections over a period of time can be similarly calculated. Accordingly, you do not need to worry about fluctuating profits so much in B2B wholesaling.
Increase Brand Visibility
Another effect that this consistency in supply has is constantly reinforced brand visibility. Your products will become a fixture of the inventories of the clients you sell to and, therefore, they will be constantly visible.
Your Brand Will Come to be Trusted
Retailers need wholesalers. If you have a repeat order with a particular client, you can offer more or less of the product according to the level of customer demand. Consequently, you will come to be trusted by your clients, who rely on you more than any individual customer relies on a retailer. This is a terrific way to solidify your reputation – and your profits. Ultimately, B2B wholesaling is one of those business ventures that has been truly democratized by ecommerce. All you need to do is build up your clients and contact the manufacturers. It is a venture that anybody can get started in.