Wholesale businesses have done relatively well in recent months. Despite the challenges that the virus has posed, many wholesalers have found their customer base has increased. In society, we see wholesalers are an easy access point for our goods. Whether you want electronics, skincare products or perhaps jewelry or clothes, wholesalers are like a one-stop point where we can get anything we want. For wholesalers, supply chains are everything. Without them, they fail. So they rely a lot on other businesses fulfilling their obligations in order to operate. This has meant some trends have arisen naturally in the past few months.
Talent crunch?
As more and more governments try to make creating a business a simpler process, young talent is choosing to go it’s own way more and more too. This has meant that for wholesalers are need brands to use their platforms, they have to adapt to new competition. Small businesses are choosing to sell products on their own websites, more often than wholesalers in some cases. One of the reasons why this has come about is because of the new favorable small business laws. Tax rates on small enterprises have gone down. According to the Tax Foundation, the EU27 have an average corporation tax rate of 23%. This is lower than the previous years of around 30%.
Marketing is tougher
As you might imagine, if more businesses are choosing to sell their products on their own websites, this means there is a battle for marketing space. All the more reason why wholesalers actually need to work with brands in their marketing campaigns, that are on their platform. One of the best examples is https://www.twineagle.com/wholesale-marketing/ which is a major supplier that provides support in the wholesale marketing challenge. They will provide key information about their methods, their statistics, and other valuable details that could be used to create a marketing campaign. They do this by running you through their process, their ethics, and their technology from wellhead to burner tip.
Inventory transparency
In the past, wholesalers held a choking grip on the distribution market. They could sell products online, without actually having the inventory in their warehouses. This was common for large wholesalers because they had so many orders but also, because they didn’t worry about being transparent about their inventory. However, this has led to customer frustration as they won’t get their purchased product within the specified delivery time. Customers would have to wait and wait until their order arrives, causing them to lose faith in the wholesale brand. It also means that wholesale companies have to be more transparent with their suppliers. Give them early warning when they need more of their product and allow them time to maintain quality control.
Wholesale businesses are a remarkable example of how powerful e-commerce has become. However, they are not going to stay on top forever if they don’t adapt to these necessary industry-wide changes that are required from them.
