Innovative Wholesale Distributors — A New Lease on Life
Wholesale has long felt like a supply chain model on its last legs. A distributor buying products from a manufacturer and sending it to retailers at higher prices is something that can easily be cut out from the aforementioned supply chain. The rise of methods such as dropshipping, which enables small retailers to not need to buy massive quantities, have only accelerated that decline. However, there’s still hope. A new wave of innovative wholesalers, both old and new, are changing the way wholesaling works and making it fit for the 21st century world of e-commerce.
The Cloud
Cloud technology is one of the key pieces of technology that help wholesalers reduce their technology costs and better integrate their systems with that of their clients. Third party cloud solutions not only offer a plethora of features, but also let companies outsource their logistics and IT systems elsewhere, helping them focus on the key aspects of wholesaling. Indeed, third party solutions like these are important insofar as they let wholesalers outsource the technological part of the operation, making for a smooth experience for them and their consumers.
Marketing
Gone are the days of newspaper ads every Wednesday and using word of mouth to spread news about new products. Personalised marketing and bettering the consumer experience is key to attracting new clients in wholesale and maintaining existing ones. The key phrase is customer experience management — wholesalers must positively manage the experience of their customers in both the tangibles and intangibles in order to maintain a positive user base. Indeed, many wholesalers are considering one to one online storefronts and personalised support plans for their clients. This personalised experience adds value to wholesalers’ offering and provides the added bonus of clients taking advantage of wholesalers’ lived experience of the market and their technical support team. Importantly, a lot of this can be outscored or done using algorithms, so a huge number of staff aren’t required.
Business Networks and a Marketplace
Wholesalers have traditionally been reluctant to join marketplaces, preferring to take an individual approach to business. However, they must innovate to survive and wholesalers have now taken up the option of a marketplace presence in large numbers. This not only increases their clientele, which can now include all the people that frequent that online marketplace, but also encourages customers to buy from them as opposed to their competitors. In essence, it’s very similar to the brick and mortar marketplaces of old, just for the 21st century.
