The wholesale industry plays a crucial role in improving the flow of processes throughout the distribution channel. Manufacturers, wholesalers and retailers have a lot to do before a product goes through before it reaches the end consumer. Wholesalers are important for keeping this process efficient and transparent.
Simply put, a wholesaler or a wholesale marketplace is a middleman between the manufacturer who manufactures the product and the retailer who sells it. In most cases, the manufacturer does not have the resources or channels to sell many products. By buying bulk products, the wholesaler can make a better deal than the manufacturer.
Problem Faced By Wholesalers:
- The obligation to receive the product supplied by the manufacturer can lead to significant losses for the wholesaler due to obstacles, transport problems and fuel prices. This situation can occur if the manufacturer’s production unit and the product are damaged, and it can prove to be an obstacle to the wholesaler obtaining the product.
- Retailers with online stores buy products in bulk and start selling to their best customers. Mega-retailers like Wal-Mart, buy most of their goods from manufacturers, bypassing the wholesale marketplaces. In this way, the company that used to be your partner becomes your competitor and deteriorates when you build up your own distribution network.
- Pricing is about getting the lowest possible price for both retailers and wholesalers by buying inventory online, and pricing tends to have a big impact on wholesalers. As a result, wholesalers often face loss of profit on both sides.
What Benefits Do Retailers Have Over Wholesalers?
A major advantage of a retailer is that you have control over your prices and profit margins. We believe that the retailer is free to set his own retail price and profit margin. So is not the case with wholesalers.
Travel Retail Trader is an online B2B portal that is home to numerous wholesalers and retailers of diverse products. What makes this platform stand apart is its transparency and ease of communication between real buyers and sellers via chat. Wholesalers can register themselves with this platform, list their products and reach out to existing retailers on the platform!