In our recent blog, we pointed out the new features we have released keeping the wholesale order management trends of 2022. With the world being in recovery mode, economic growth and progress are definitely high up on the list along with a widening in the growing importance of B2B eCommerce. That being said, wholesale businesses are ready to thrive this year. Read on to know-how.
What is a Wholesale Business?
Before you jump right into the reasoning of why a wholesale business is a good idea, let’s get on the same page about what a wholesale business actually is. Taking the definition of Shopify, a wholesale business is one that sells products in bulk to a retail business, which in turn sells the product to the final consumer.
Wholesale businesses occupy an important position in the supply chains as they reduce the handling costs and make a significant impression on the time taken during the selling process.
Reasons to Start your Wholesale Business Today
Choosing to get into the wholesale business comes with its own set of advantages and if you want your business this very here, the following reasons will definitely give you the much-needed boost to do so:
- Predictability in Profit Margins
There are a wide variety of domains and sectors that you can enter today for your wholesale business. But would you dive into a pool when you know it is deep and you can’t swim? No, right. Same with starting a business, before deciding on the finer details of the business you need to be certain about the profits. That becomes easy when it is a wholesale business. You can simply calculate your profit margins by following these steps:
Calculate the material costs
Determine the cost of labour
Account for indirect costs
Finally, find the profit margin
This also gives you a fair estimate of what should be your wholesale price. The same predictability does not come with other types of businesses such as retail, as they have a wider dependence on the buying behaviour and other factors. This is especially a good time to be aware of your profit margins as the post-pandemic world has seen several changes in the market dynamics.
- Opportunity for Wider Expansion
As a wholesaler, you act as a vehicle for the manufacturer to reach the retailers. The key to this is obviously by maintaining great relations with groups from both industries. By becoming a wholesaler, you can only imagine the exposure you get to the number of outlets and eventually the number of customers.
With eCommerce being the trend of the town in recent times, online wholesalers have also come to play an important role. It is almost like they act as a repository for their customers who are looking to expand their reach. This also works out especially, for the international retailers who can offer products on a global scale.
There is no doubt that retailers would be burdened with a plethora of communications with manufacturers, and a lot of them, in the absence of wholesale businesses. So if you think you can be the link they need, nothing should be stopping you from starting a wholesale business today.
- Ease of Operations
With a stark shift towards technology and automation, managing a wholesale business has become so much easier today. Once you have done your research, you know the product, the market and have a set of clients, you need to be prepared to manage them swiftly. That’s where automation comes to play. With Order Management Systems like OrderCircle, you have the liberty to cut down on a large percentage of manual labour. People will be able to automatically track their orders and shipments, and you get real-time notifications about inventory levels and even custom reports, giving you updates about buyer trends and customer accounts. Even invoicing and payments can be recorded with efficiency and accuracy.Sounds like a dream, right? Once your operations are sorted, all your focus can shift towards selling and reaching out to the right businesses.
- Constant Demand for Goods
As a wholesaler, your job is to be a link between manufacturers and retailers. The more retailers you reach out to over time, the more demand you see for your products. Rather than relying on a single stream of customers, you also have the scope to diversify and definitely build a better brand for yourself. And we definitely know what a constant demand for goods means? Bigger Bucks!
Need Help in Starting your Wholesale Business?
2022 sounds like a good year to start off your wholesale venture. All the trends are pointing in the direction and so you should definitely trudge down the path. For managing all your orders and operations, you can always rely on the OrderCircle. Simply take a free trial to find out about how it works and get going from there.