You might be a retailer, right? If so, then you need to worry about different-different factors like branding, product variation, design, marketing, and much more. By selling wholesale to retail, you can do away with a lot of those problems and concentrate only on growing your business.
In this article, I will show you why selling wholesale to retailers is a great idea and also I will talk about how to start a wholesale business in WordPress.
What is Wholesaling?
Wholesaling is a term that is used if you sell your products in bulk to another retailer usually at a discounted price. Then the retailer can sell the products to the customers.
Creating a wholesale business also allows you to sell the products directly to the customers.
Why sell wholesale to retailers
Selling products in wholesale is not new, but wholesale has experienced a change from its own due to online marketplaces like Amazon, Wish, and Wayfair.
The modernized version of wholesaling has advantages that are attracting direct-to-consumer brands too. There are 3 main reasons why starting up a wholesale business might benefit your company.
1. Increase sales without increasing your spending
In a direct-to-consumer service, a large amount of your budget needs to be allocated to your marketing for growing your business.
But on the other hand, if you have a wholesale service, you can let others spend the extra cost of your marketing. It can save you time and money.
2. Motivate other brands’ audiences to sell your product
By creating a partnership with a well-reputed brand that already made a name on the market with your niche, you can leverage the company’s goodwill to get your product into the hands of consumers.
3. Join new markets with low risk
Joining new markets can cost you a lot. Costs like logistics, warehousing, marketing to a new area and people and many more. But finding another retailer with an existing presence can help you to reduce your risk and your money.
In the end, a wholesale business helps both of you, the wholesaler and also the retailer.
Here are the points you need to know if you want to sell retailers:
- Branding is not as important since companies might want to white label goods on their end
- Sell in bulk can give you much larger profit margins
- Wholesale consumers tend to make return purchases as long as you give them great prices
- You get to adjust payment terms and transportation options on a customer-by-customer basis
- Retail services tend to have much bigger overheads
Now, let’s see how to start a wholesale business.
How do I start a wholesale business?
Starting a wholesale business is not so hard. You just need your products and there you go to start your wholesale business. If you have already had an eCommerce store, then it is so easy for you to start a wholesale business.
Step – 1. Calculate your wholesale price
First, we need to calculate your product’s price for wholesale. Here are a few points you have to follow to calculate your product price:
- Look at your competitors and know what price they offer on the same product.
- Know your customer’s feedback and know how you can differentiate your products
- Check your production costs and try to minimize your costs
- Decide a price that’s within your production costs and the original retail price
This is the narrow version of the process of calculating your wholesale price. But if you want to calculate your wholesale price, you have to follow all the steps.
You need to be competitive with other businesses. You can offer them the same price as your competitor offers or lower the price that they offer.
Low production costs and a good location can save you lots of money and time, so you can offer a much lower price than your competitors.
Step – 2. Find your retailers and approach them
Finding retailers is not easy, they already have existing relationships with suppliers, so you need to approach them by your wholesale marketing plan.
So, you need to create a wholesale marketing plan to approach retailers. For approaching retailers, you can try these few tips:
- Directly in-person meetings
- Head-office meetings
- By sending cold emails
If you target a small retailer, then a direct meeting could be the best option for you.
Dealing with head offices is slightly similar, but they often denote a large group of retailers. So, you need to approach it nicely.
And cold emails are the best option if you have a list of retailers and their emails. It could save you lots of time.
The more leads you will collect, the more retailers you will get.
Let’s move forward to our last step.
Step – 3. Starting an online wholesale store
With CMS like WordPress and plugins like WooCommerce and Wholesale Suite, creating an online wholesale website is easy.
I already created an article where I discuss how to create a wholesale website – read that article to know more about it.
Which is the best web hosting for WordPress? – this article helps you choose your web hosting company, so read it.
That’s it in this article. I hope you like it. If so, then share it with your friends and family. Thanks for reading.