In an age where businesses must constantly find ways to expand, streamline, and keep ahead of fierce competition, wholesale ecommerce has emerged as a powerful solution.
At-home entrepreneurs looking to take advantage of this growing trend need to understand the benefits of wholesale, the advantages of B2B models, and how to get started. To help, DigitBridge has created a comprehensive guide that will set you on the path toward a thriving wholesale ecommerce business.
What is Wholesale Ecommerce?
Wholesale ecommerce is a business model aiming to sell bulk goods to businesses and other retailers. These retailers then resell the goods directly to consumers for a profit.
This means wholesale ecommerce typically focuses on B2B (business-to-business) transactions rather than traditional B2C (business-to-consumer) sales.
Wholesale vs. Traditional Ecommerce Models
In wholesale ecommerce, your target audience is usually other businesses and retailers, not individual customers. This means your marketing, relationships, and pricing must be suited to bulk purchases and long-term, mutually beneficial strategies.
- Pricing: Retailers will resell the goods they buy directly from you to customers. They’ll need to profit from these transactions while maintaining a competitive market price. To facilitate this, they’ll be looking to buy goods in bulk at an appropriate discount.
- Marketing: You won’t be marketing your goods directly to customers. Instead, you’ll need a model that allows you to appeal to fellow retailers and businesses.
- Relationships: Companies focusing on B2B transactions must understand that long-term, mutually beneficial relationships are critical to business success. Being customer-focused, solution-oriented, reasonable, and reliable are essential for wholesale ecommerce.
3 Reasons to Start a Wholesale Ecommerce Business
Wholesale ecommerce is a simple but powerful business model. For those thinking of starting their own company or just looking to earn some extra cash, here are three reasons to go with wholesale ecommerce.
1. Low Initial Investment
You don’t need a considerable amount of capital to start your own wholesale ecommerce business. This is mainly because you won’t need to pay rent at a physical store location. In addition, since you’ll be selling directly to businesses instead of consumers, you can negotiate bulk deals and discounts from suppliers that can further reduce your overhead and maximize your profits immediately.
2. Opportunities to Build Relationships
The old saying goes: “It’s not what you know, but who you know.” This phrase perfectly encapsulates the best way to succeed in B2B: ensuring you’re providing a valuable product to someone else who also hopes to grow in the long term.
Wholesale ecommerce that focuses on serving other businesses is the perfect way to use your personal and social skills to form long-lasting relationships with other entrepreneurs. This trust will help you grow and build a sterling reputation in your industry.
3. Help from Digital Platforms like DigitBridge
Wholesale ecommerce is a simple model but requires significant time, investments, and knowledge to succeed.
To help, companies like DigitBridge have introduced products that can streamline necessary processes for you. For example, inventory management, integrations, shipping, catalog management, and product listing can all be made simpler by implementing these digital tools. In addition, tools like DigitBridge can help you scale and grow by providing valuable business insights and rich reports on your transaction data.
Access to these tools is another reason wholesale ecommerce is the perfect business model for entrepreneurs without prior business experience.
How to Get Started with B2B Wholesale Ecommerce
If you’re ready to get started earning extra money with your own wholesale ecommerce business, here are three steps you can follow today:
1. Identify Your Niche
You’ll first need to determine what you plan to sell.
Focus on a category you’re passionate about that has serious market demand. To conduct market research, do the following:
- Research existing offerings, competitors’ pricing strategies, and customer reviews to identify gaps you might be able to fill.
- Use keyword research tools such as Ahrefs, Google Trends, and social media to understand customer interests, market demands, and emerging trends in your niche.
- Reach out to potential customers and discuss their unfulfilled needs.
2. Source Your Products
A great product is critical. If you land a few big sales but end up with disappointed customers due to a faulty or low-quality product, your initial success will quickly turn to dust.
Here are a few tips for sourcing high-quality products online:
- First, use supplier directories like Alibaba, Global Sources, or Thomasnet to find existing reliable manufacturers and suppliers that will meet a high standard.
- Evaluate manufacturers by checking their industry certifications, reviews, production capacity, and responsiveness before starting a business relationship.
- Request suppliers’ samples to assess product quality, packaging, and shipping times.
3. Create a Robust Online Presence
You’ll want a professional, search-engine-optimized, and user-friendly website to attract as much traffic as possible.
When curating your website and online presence, keep these ideas in mind:
- Use the highest-quality media (images & videos) to showcase your products professionally and appeal to potential customers.
- Use detailed product descriptions that cut down on customers’ research times and answer questions before they’re asked.
- Optimize your content for SEO.
- Leverage social media and other relevant platforms for the promotion.
The Best Ecommerce Platform for Wholesale
Embracing wholesale ecommerce represents a dynamic opportunity for entrepreneurs seeking growth and efficiency in their at-home business ventures.
To help you thrive, DigitBridge’s all-in-one wholesale ecommerce platform makes it easier to manage buying, selling, and fulfillment.
If you’re ready to see how we can help you grow your wholesale ecommerce business, reach out today and request a demo of DigitBridge.
