B2B Wholesale

The B2B wholesale sector is a significant force behind the growth of international trade. The wholesale market, which already includes about 750,000 companies in the US, generated 8.3 trillion dollars in revenue in 2018 and is expected to grow by 1.9% from 2018 to 2023. Even with only a few numerical data, it is clear that starting a B2B wholesale business may be a financially successful venture for any entrepreneur.

If you already have a presence in the b2b wholesale marketplace, now is the time to innovate to expand your company’s revenue. In this article, we will outline precisely what, why, and how of this trillion-dollar opportunity, as well as provide readers with many practical recommendations for picking out from the many B2B wholesale platforms that are available that will perform well and generate leads. Let’s check it out now!

What is B2B wholesale?

B2B wholesale is a subset of the greater B2B business, and a sort of online commercial transaction that takes place between businesses, frequently involving a manufacturer and wholesaler or a wholesaler and a retailer. To be more precise, business-to-business B2B wholesales sell other businesses single things as well as products in large quantities. In this type of supply chain, the buying firm either utilises the products typically for its production or consumption or resells them in smaller amounts to individual clients.

Although the definition now appears to be very obvious, this is one term that should not be used. We frequently hear the term “big-box store” in close relation to B2B wholesale. Due to the merging of its names, we might think of it as a retailer. However, this is also a type of wholesale business whose primary objective is to buy big quantities of goods through recurring connections and sell to large retail chains like Target or Walmart.

There are many ways to categorise wholesale commerce, the broad categories used by the Census of Wholesale Trade are most frequently utilised. Three primary kinds of wholesaling:

  • Wholesaling by manufacturers

Distributing the manufacturer’s own product at wholesale is the main usage of manufacturers wholesale.

  • Merchant Wholesaling

This company’s primary business is purchasing, sorting, and managing relatively large amounts of things before reselling them to retailers in smaller numbers. They go by a variety of titles, including distributor, wholesaler, jobber, supply house, etc.

  • Brokers and Agents

In addition to operating on behalf of their clients, brokers and agents are independent mediators who actively participate in purchasing and selling negotiations. The names of manufacturers’ representatives, commission merchants, dealers, selling agents, etc.

Advantages of B2B Wholesale

Boost Order Volume and AOV

B2B wholesale businesses can eventually achieve larger Average Order Values (AOV) and order volumes due to the B2B wholesale industry’s need to transfer significant amounts of products through long-term agreement structures. Additionally, because of the basis of the long-standing contract, the custom-life time value increases.

Boost Brand Awareness

Because selling products directly to retailers in bulk without using an intermediary is the primary purpose of B2B wholesale. By reselling your products to retail partners, who in turn resale to their customers, you can build a strong sense of brand recognition among new customers. When your brand’s presence is widely acknowledged, more and better development prospects arise.

Keep Your Profit Margin Constant

Another advantage of B2B wholesale is that wholesalers receive a fixed profit margin, which is often between 3-10%. Businesses do not need to worry about the profit margin because it is possible to calculate the exact profit that results from selling a specific quantity of items to retailers.

Increased Oversupply Control

Wholesalers function as a driver in the supply chain, being able to regulate changes in supply and demand between the manufacturer and the retailer. B2B retailers are even more reliant on their wholesale suppliers for manufacturing, resale, and consumption.

Challenges of B2B Wholesale

Technology Evolution

B2B wholesaling has been significantly impacted by the Internet, which has increased pricing competition and created a risk for ineffective wholesalers. Additionally, manufacturers and retailers hope to eliminate intermediaries from the distribution process by using the internet. B2B wholesalers run the danger of not getting the benefits of electronic commerce that they desire.

Global Competition

Internet exploration brings with it worldwide competition, which once more pushes prices lower and most adversely affects low-margin distributors. But if the wholesalers can grow their business into a new market while keeping expenses in check, they may be able to make up for any lost revenues and even increase overall sales and profits.

Consolidation in Retail

The number of wholesalers supplying supermarkets, home electronics, office supplies, and Do-It-Yourself (DIY) materials has decreased as a result of the expansion of national retailers. The two types of wholesalers that stand to benefit most from the changes are those that will continue to expand and serve a wide range of customers and those that will concentrate on niche areas and thrive there.

Must-Have Features For B2B wholesale platform

Choosing a good platform is likely one of the challenges you will face if you are starting a B2B wholesale business on eCommerce. There are numerous possibilities available, but before you do, you should be aware of the essential features that a B2B website must have.

Easy to use

Usability may be the most significant trait to look for in a B2B platform. It can be difficult for the administrator to oversee the website’s activities because of the extensive features designed to handle the complexity of B2B transactions. Therefore, providing these features while still being user-friendly is vitally essential, especially when attempting to modify the status quote and instantly update customer information like phone, taxes, or email.

B2B capabilities

A B2B platform should preferably have B2B eCommerce functions targeted at B2B buyers, such as bulk purchasing and pricing, order duplication from the past, inventory availability, account administration, and numerous shipping/payment options.

Mobile compatibility

B2B decision-makers are increasingly turning to their mobile devices in place of PCs to do online research and transact business. You will miss out on a lot of business prospects if you don’t offer them a quick and easy mobile experience. Make sure your wholesale B2B website performs properly on mobile devices and is highly responsive.


If you are a wholesaler or manufacturer, it is vital to have an online reputation that confirms your expertise and experience. A step-by-step guide on how to create, maintain and market your business profile can be of great use for increasing conversion rates, as well as creating trust.

For the best live example of a B2B Wholesale platform have a look at LOTS Wholesale Solutions. With three physical stores across North India and a wholesale e-commerce platform. They provide groceries and home essentials at reasonable prices along with premium quality.

Also Read: Ways To Grow Your B2B Wholesale Business

By Anurag Rathod

Anurag Rathod, as a blogger he used to spread all about app-based business, startup solution, on-demand business tips and ideas and so on.