Expand Your Wholesale Business Online in 2022
According to First Research, the wholesale industry includes around 408,000 establishments in the US, with combined annual sales of about $10 trillion in 2021. Hundreds of new wholesale businesses join the profitable marketplace every year. However, only a few of the newly launched B2B companies managed to make it up to five years.
It brings us to the question:
Why do most wholesale businesses shut down within the first five years of their startup?
It can be a failure to meet the sales target, build business links, find a reliable supplier, or all.
Here we shall discuss the problems of newly started wholesale companies and the best solutions to those problems.
Let’s start by understanding what is a wholesale business and why you should consider one?
Wholesale refers to a business model where you buy products in large quantities from the manufacturers, store them, and then resell the products. Many wholesale businesses also manufacture their products and then sell them directly to retailers. Wholesale companies can fall into one of the three following categories:
- Merchant Wholesalers
- Specialty Wholesalers
- Online Wholesalers
- Dropshipping wholesalers
- Sales and Distributions
The wholesale Trade sector has faced the unprecedented challenges posed by the coronavirus pandemic in 2020. Fortunately, the effects of these challenges started to abate in 2021.
Why You Should Start a Wholesale Business?
Wholesale businesses can be considered the backbone of any industry. Mainly, it is the art of trading products and services for profit. However, you can also enjoy an enormous number of benefits associated with a wholesale business. Some of the major advantages of starting a wholesale business are:
- It improves a company’s cash flow.
- You can earn more profit in fewer transactions.
- It enables you to have superb control over your schedule.
- It allows you to tap more markets.
- It empowers you to buy raw materials in large quantities at lower rates.
Wholesale Business Startup Problems (Problems that New Wholesalers May Face)
There are plenty of chew wholesalers may face plenty of challenges and problems some of the most significant issues of wholesale business startups are below:
- E-Commerce Takeover
After B2C, the B2B industry has also hit the e-commerce trend. Wholesalers around the world are trying to establish a formidable online presence before their competitors. The problem is that most wholesalers (especially those who have been in the market for 10+ years) do not know how to make their place in the digital world.
Creating a business website with bland aesthetics or a complex user interface will hardly bring new customers. So it is understandable that when an entire industry shifts to a new platform, there will be significant problems at the start.
- Inventory Management
Inventory management issues are not new in the wholesale industry. However, mismanagement of inventory is one of the primary reasons for companies’ failure to achieve their business goals. Wholesalers need to keep a record of all the products coming in and going out of their storage facility efficiently. Inventory management issues faced by new wholesalers include:
- Not being able to provide tracking information to the customer.
- Not knowing how much stock is left.
- Delay in deliveries because of unsystematic storage.
- Increased Market Competition
These days, many manufacturers sell their products directly to the end-users with the help of efficient logistic systems. It has created a highly competitive atmosphere in the wholesale marketplace. Bypassing wholesalers and distributors has rendered newcomers to this industry helpless. Therefore, it has become crucial for new wholesalers to have reliable suppliers and providers.
- Connection Building
Connection building is another major problem faced by new wholesalers. Establishing your company will be easier if you know people in the wholesale marketplace or have business connections before entering the market.
However, if you do not know any wholesaler, retailer, distributor, or manufacturer and start a wholesale business, standing out and reaching your target customer can be an enormous challenge.
- Demanding Customers
One of the biggest challenges that wholesalers are facing these days involves demanding customers. The main reason for this problem is that people who practically grew up in the digital age have entered the business world. The new generation is accustomed to browsing/ordering products online and has a certain standard of customer service. As a result, wholesale companies may find it hard to provide B2C-level customer service to their B2B clients.
- Lack of Knowledge
Last but not least, a lack of knowledge may create tremendous risks and problems for startup wholesalers. you may fail to achieve your sales target if you do not know:
- How to build business connections?
- Which online wholesale platform you should use to list your products?
- Which marketing strategy you should implement?
- The latest business tools and technology.
Solutions and Benefits of Being on SeeBiz
Imagine having a wholesale business without worrying about sales, business connections, and even inventory management. Is it possible to find a perfect place to sell your products and meet other wholesalers, distributors, retailers, and manufacturers?
The answer is YES!
SeeBiz is a leading online wholesale marketplace in the US. It is the world’s first social media platform for businesses. Let’s check how being on SeeBiz can solve many problems for wholesalers and startup companies below:
- Social Media Platform for Businesses
One of the exclusive benefits of being on SeeBiz is that wholesalers get to be a part of the largest online B2B community. They can get instant access to many products from manufacturers, distributors, and other wholesalers. SeeBiz provides the easiest way to communicate and make trustful connections in the marketplace.
Here’s what you get by signing up on SeeBiz:
- Prompt admission to the entire network of vendors and customers.
- Detailed analytics and reports regularly.
- Business automation.
- Multichannel management.
- Advanced email and chat system to ensure easy communication.
- 24/7 user support.
- Group Pricing
Another distinct feature of SeeBiz is that it provides the option of group pricing to its users. Let’s understand this feature in detail below:
After signing up on SeeBiz, you can add vendors to your connection list (just like you add friends to your Facebook friend list).
(You can also import a business connection file to your SeeBiz profile)
Once you have your business connections, you can divide them into groups of your choice. For instance, you can add your old and reliable business connections in one group and new ones in another.
Now let’s assume that you want to give a special discount to your old business connections. SeeBiz provides you with the option to set a particular price for your products for a certain group. This way, you can sell your products at different prices to companies in your group.
Sounds Great, right? No other online wholesale platform offers the group pricing feature to its customers. So, if you want to take advantage of this feature, all you have to do is sign up on SeeBiz.
- Connection Building
Making business connections was never so easy and simple. You can instantly connect with hundreds of manufacturers, distributors, retailers, and wholesalers through SeeBiz. In addition, you can list your product on your digital inventory and see others’ products on your timeline. With the help of SeeBiz, you can market and promote your products and reach your target customers instantly.
You can chat and communicate with vendors and customers just by clicking on the message tab. SeeBiz also lets you stay up-to-date with prices offered by your competitors.
- SeeBiz Inventory Management Software
Besides being the first social media platform for business, SeeBiz provides an excellent solution for all your inventory management-related issues. Those days are gone when registers and pens were used to track your sales and purchases. Instead, most successful wholesale companies rely on the latest inventory management tools and software.
SeeBiz Inventory Management Software provides you with some of the best tools to keep your inventory organized and in control. Let’s check some of the significant features offered by SeeBiz Inventory Management Software (IMS) below:
- SeeBiz IMS labels and keeps a record of each of the products in your warehouse.
- You can have real-time tracking of each stage of your sales and purchase flow, from orders and packaging to shipment and delivery.
- Economic Order Quantity (EOQ) lets you find the most efficient ways of purchasing new products.
- You can add and communicate with your business connections within the inventory system.
- The system auto-generates reports to give you insights into your inventory.
- SeeBiz IMS will notify you when you need to purchase more stock. This way, you can avoid the trouble of excessive or short stock loss.
- You can add multiple product-related tasks such as online and offline orders, drop shipment, creating invoices, back-orders, and more.
The wholesale industry is indeed highly profitable with lots of ppotential However, wholesalers (especially those who just started their business) may face different types of challenges, from selling their products and building new business connections to managing their inventory.
Whether you are a wholesaler, retailer, manufacturer, or distributor, SeeBiz provides a perfect solution for all kinds of business-related problems. In simple words, you can say that SeeBiz is Facebook for wholesale businesses.
So, whether you are an established wholesaler or a newbie in the market, get on SeeBiz to ensure the success of your business effortlessly.