Importance of Wholesalers in Retail Business
Wholesaling is the buying/handling of products and services and their subsequent resale to institutional users and in some cases to final consumers. Wholesaling assumes many functions in a distribution channel, particularly those in the sorting process. Manufacturers and service providers sometimes act as their own wholesalers.
A wholesaler purchases the goods from manufacturer in bulk quantity and re-sells it to retailers in small quantity. Wholesalers occupy a pivotal place in the marketing channel set-up.
In most cases they perform several critical functions invaluable to the smooth flow of goods, ownership, finance, and inforÂmation.
In the business industry, wholesalers are keeping the balance. Have you ever thought what will happen if there is no wholesalers? Let’s talk about some points bearing the importance of wholesalers in the business industry.
- Break Down Bulk& Sells in Small Quantity
- Storage
- Reduced Contact Cost & Risk Bearing
- Demand Supply Stability Globally
- Better Information
- Extended Service(s)
- Acts as an information mediator
** Wholesalers do the best thing is that they make the buying & selling process easier. They buy or make a bulk amount of products and make theme small parts to sell. That’s why a small or large retail business person can buy easily.
For example we can think about the situation in Malaysia. In Malaysia clothing brands are going popular day by day. Specially kid’s clothing. There, one of the best wholesale kid’s clothing brand is ” Blue Jay “.
They make products in a bulk amount and break them small parts, so that the retailers can buy from them in any amount with an affordable price. Even in this covid situation they are Providing online opportunities too.
That’s how the retailers can run their businesses so smoothly.
** The wholesalers are a good storage of products. So many products are making, shipping & so on. Wholesalers are a media of storage products.
** The producer & the customan can get the products with a reduced price because of the wholesaler. And important thing is that they are risk bearing.
** When selling wholesale products, it’s much faster and easier to expand into global markets. Any growth and expansion is defined primarily by your relationship with those clients who buy goods from you. If they sell globally, then so will you as you’re just getting the goods to where they need to sell them.
** Being a wholesaler offers access to a wide variety of outlets and enables you to connect with a broad customer base. Providing products at wholesale enables wider audiences access to the products manufactured by firms within your supply chain; therefore, you can expand the business quickly. The following are issues involved in running a wholesale business.
** Wholesalers are the the media between the customers & business person. They are providing a vast opportunity for you also.
You can spend a fortune in Google ads and do every market under the sun and still never tap the markets that wholesale world can potentially deliver. In fact, you never have to leave your workshop to capture new business when you work in wholesale.
Most common example of wholesale business is Amazon and Ali Baba. These two marketplaces connect manufactures, wholesalers and buyers. Wholesalers attract buyers because they have the luxury to offer products at lower prices than the retailers and luxury retail store, because they use warehouses which minimize overhead and marketing cost.
Eventually the main thing is that – Wholesalers are important but but more important is to find a trusted wholesaler. Always check before you are starting a business. Is the wholesale company providing their all information like ” Blue Jay ” or not. Best wishes for your new business!
