Every wholesale supplier follows the B2B wholesale strategy, which is business-to-business. Buying products from manufacturers and then supplying related goods to further customers.
In the list of providing essential items, the maximum number of required articles is grocery. However, not just wholesale grocery store suppliers, but there are many other wholesale stores.
To know the brief of what is wholesale, to how they are different from manufacturers and retailers. Let’s unbind the knowledge as follows:
What is Wholesale?
Buying products in the maximum quantity and then selling the same to further retailers, vendors, and/or direct to the customers. The process of buying and selling items in bulk is known as wholesale, and the person who deals with this is called a wholesaler.
A wholesale store or a wholesaler works merely like a middleman merchant who deals directly from the manufacturer and further divides goods in bulk to either other vendors or retailers.
As every wholesaler buys goods in large quantity and stores the same in their warehouse. The wholesalers at the time of buying, pay lower amount prices as they buy items in bulk.
Then to make a profit in order to survive in the market, the wholesaler or wholesale stores further sell the items to the retailers or customers at some lower prices than the actual MRP. After they assure a particular percentage of profit they gain.
Now, as the wholesale stores or wholesalers sell products further to the retailers and other vendors. Let’s know how that makes a difference?
How a wholesaler is different from a retailer:
- As a wholesaler purchases goods in bulk, they pay lower prices and that’s why they further sell items with some margin from the original price. Whereas, a retailer buys at lower prices too, but more than what a wholesaler pays. So, to keep their profit, they sell any item at the price that is mentioned on the product.
- Due to buying items in maximum quantity, a wholesaler or wholesale store keeps in mind from things that are least sold to the things that are highly sold. On the other hand, a retailer does not block their money in the products they know that do not make many sales.
- Keeping in mind various clients, a wholesaler purchases items from manufacturers of different brands. However, a retailer knows its specific audience and its requirements are. That’s why a retailer keeps specific brands.
- Having a backup stored in the warehouse, a wholesaler can fulfill the customer’s demand at any time. But on the other side of the road, a retailer does not keep backup or other options of similar products. That is the reason a customer, sometimes do not get what they need.
As some of the differences end here. Let’s have a look at the benefits of a wholesaler.
What are the wholesaler’s benefits?
The wholesaler works as a middleman to match the supply with the demand, there are many benefits of the same. Some are listed below:
- A wholesaler deals direct with the manufacturer and that is why they save a lot of money while purchasing goods.
- As the wholesaler buys large quantity products, it helps them in further selling the same products to a dozen people with increased profits.
- Wholesalers deal with many suppliers whether at the time of buying or selling. So they know which supplier is profitable to them and those who aren’t find other options for them.
- Wholesalers also cover wider geographical areas, because of their diversity in buying and selling products.
- Buying in bulk and then selling the same products to many vendors or retailers makes wholesalers reach wider to get more business, supply-wise.
After knowing the benefits, it’s time, to sum up. But before that, let’s give light on:
Wholesaler’s market fit strategy:
In the description, it is mentioned that a wholesaler follows a B2B wholesale strategy. The B2B strategy stands for business-to-business strategy.
But what is a B2B strategy? According to the Business Dictionary, the process by which businesses employ a multi-layered strategy for the purpose of converting targeted business prospects into customers.
In simpler words, to follow a proper different stage strategy to sell items directly to the customers.
A wholesaler follows this strategy to grow their business as they deal with multiple manufacturers and then further vendors, dealers, and retailers. The longer the reach the more is there to earn.
A wholesale supplier delivers the demand to the customers by supplying the necessities. By following the B2B strategy, wholesale stores sustain in the market.