Selling wholesale to retail is one of the most profitable business nowadays and you could make a fortune doing it.
And guess what? It's gonna grow bigger and bigger.
If you are planning a product based business then wholesale to retail business model is something that you must consider.
If you have a product to sell and you don’t want to deal with the innovation, design, marketing, branding, etc. then you should become a wholesaler.
Those things will be important to you if you are in a retail business, but you will not need to be concerned about it if you are a wholesaler.
Wholesalers deal with companies that sell their products to the end-users, not directly with the end-users themselves.
So if you want to avoid all the obstacles of a retail shop owner then selling wholesale can be a good option for you.
As the retail business owners buy products from you in bulk.
If you provide a quality product at a reasonable price, your customers are sure to come back for more.
This is one of the benefit of selling wholesale.
Advantages Of Wholesaling
- You can sell your product in bulk.
- Customers are more likely to make purchases again if your product is good.
- Not much emphasis on branding.
- Don’t have to deal with end customers.
Guide To Start Your Wholesale Business
To start a wholesale business, you need to have some kind of product.
If you are already running an e-commerce website, then you have a decent stock of products.
Now you need to sell them at a wholesale rate and to do this you need to follow the following steps.
Step 1: Set Your Product's Price
First, you need to calculate your wholesale prices of course.
There are a few important points that you need to keep in mind when deciding the price for your products and those points are:
- Look at your competitors for what they are charging for the same product as yours.
- Collect customer feedback to see how you can differentiate your products.
- You need to select the minimum price of a particular product.
- Select a price that is between your production cost and the retail price.
The main thing that you need to keep in mind when deciding the price of a product is that you need to stay competitive with your competitors.
You can do this by offering the same product at lower prices or you can provide a better quality product at the same price.
Step 2: Approach Retail Stores And Customers
In this step after deciding your wholesale price, you need to approach stores and customers who are going to buy your products.
Most stores may already have relations with their current suppliers, which means they will not know you until you approach them first.
There are three most common ways to approach a retailer and those are:
If you are dealing with a small retailer, then approaching them directly in-person is the best idea because there you can find out about their existing supplier and you give your sales pitch there right in front of them.
Head-office meeting is almost the same but here you will have to tell about your products to multiple people and you better be prepared to convince them all.
Cold emails are also a very good option to consider.
Here you need to gather the contact information of your customers and you need to send them emails with the information about your products and why they should consider you.
In 95% of cases, you won't receive a reply, but it only takes one or two replies to get going in a wholesale business because of its nature.
Step 3: Set Up A Wholesale Store
Now it's time that you should launch your own wholesale store online.
Launching a new e-commerce website is really easy nowadays.
To open an e-commerce store with capabilities that you require to run a wholesale business, you need to have tools like a Wholesale Suite.
This is basically a plugin or extension that provides some new functionality for WooCommerce that you are really going to need if you want to succeed in your wholesale business.
Using Wholesale Suite, All your products can be priced differently, have customized order pages, define custom wholesale roles, and many more.
In order to take your wholesale business seriously, you need to have a website that will manage orders and assist you in processing sales effectively and efficiently.
With the help of a Wholesale Suite, you can do this, so retailers can order whenever they want and you can focus on your business more.
3 Tips To Grow Your Wholesale Business
- Wholesale products are priced differently. They are usually bought in bulk. First, you need to set the price for different products for example for some products you need to fix the wholesale price, and for a different product, you need to set a quantity-based discount.
- It is recommended that you offer free products to your customers after they have purchased products of a certain value. You also need to collect feedback regularly. You can also offer them discounts on certain occasions by setting up discount rules.
- You can also make money based on surcharges. Surcharges are charges that are included with the product or during the purchase of the product.
Best Way To Approach Retail Stores And Marketing Strategy For Your Wholesale Business
There are a ton of approaches that you can implement to approach a retail owner but a face-to-face conversation or cold emails have no comparisons in this section.
You can also directly mail a retail store to check if they are interested in buying your products or not. The email should be interactive and there should be a good description of your product.
You need to have the right marketing plan in place so you can attract more customers, get more orders and increase your sales.
You need to imply techniques like cold calling, direct mail, cold emails, sending samples, and things like that.
Wholesale will be the right choice for you if you don’t want to deal with the end customer and also if you want to sell your products in bulk.
To sell products in wholesale you have to offer competitive prices and also you need to have a good marketing plan in place for your products.
Wholesale Suite comes with all sets of features that you'd require for your online wholesale store to grow your business even further and faster.