B2B wholesale trade plays an important role in the flow of goods from manufacturers to consumers. B2B wholesalers act as intermediaries in the supply chain in most industries, purchasing products from manufacturers and reselling them in bulk to retailers and other businesses.
We will show you how B2B wholesale works, what advantages and challenges it brings and how you can run a successful B2B wholesale business.
What is B2B wholesale?
B2B wholesale is a business model in which products are purchased directly from manufacturers and resold to commercial customers via the company’s own sales channel. This economically relevant model can now be implemented both in stationary retail and in e-commerce.
How does B2B wholesale work in e-commerce?
The most common wholesale trade is between producers and retailers, saudi arabia email list but there are also wholesalers who sell to other wholesalers and those who sell directly to consumers.
Wholesale is often viewed as a traditional sales channel with a less than ideal shopping experience. However, best practices for managing your email campaign list advances in technology and changing behavior of B2B customers have revolutionized wholesale e-commerce.
Today, e-commerce retailers are using wholesale to drive growth without huge capital investments or high risks. With the right tools, burkina faso leads B2B stores can automate many tasks from customer registration to checkout with features like specific wholesale pricing and outsourced order fulfillment.
The assumption in wholesale that the retail self-service ordering model does not work in a B2B environment is no longer true. As in retail, business customers also benefit enormously from the time and effort savings as well as the flexibility and transparency that online ordering brings.
Reading tip: We have drawn a comparison between B2B vs. B2C . We present the most important differences in this article.
Examples of B2B wholesale companies
Both B2B wholesale and direct-to-consumer sales can be critical to sustainability in today’s competitive retail landscape.
Here are some more innovative examples of Shopify merchants that also enable B2B wholesale:
- the nu company: The nu company’s fair chocolate brand Nucao uses a B2B model to sell its products to other companies. To do this, the company operates a separate Shopify store in addition to its B2C online shop.
- Blackroll: Blackroll sells foam rollers and other health products directly to consumers (DTC), but also uses its own B2B marketplace to distribute inventory to other companies, giving it access to an existing network of retailers.
- 3Bears: The 3Bears brand, known for porridge, sells products via the wholesale portal Faire in addition to its B2C online shop and operates a separate B2B website for retailers.
- ESN: The nutritional supplement company ESN uses a B2B wholesale model with a dealer program for companies that sell ESN products in retail stores and fitness studios. The brand also successfully sells directly to consumers and scores with a strong presence on social media.
Reading tip: You can find more B2B examples in this article.
advantages and challenges
B2B wholesale offers a number of advantages – and not just for the wholesalers themselves. All those involved in the supply chain, such as manufacturers and retailers, also benefit from the business model. The most important advantages are:
Higher average order value
A B2B wholesale transaction generates more revenue than selling individual products to consumers. This means you can generate large revenue from just one order.
High sales volume
Since wholesalers typically sell in large quantities, they usually achieve a higher overall sales volume through repeat purchases.
Broader access to the market
Through B2B wholesale, products quickly reach a wide audience. Distributing products through wholesalers can help manufacturers achieve quick market access and visibility.