You have a product, and it’s a good one. You may be looking at the best way to take that product to market, or you may already be selling it and are now planning for growth.
Essentially there are two main ways to sell your product – either as a wholesaler, or as a retailer. Each has its benefits and potential pitfalls. When choosing the most appropriate avenue to market, you must consider which model fits best with:
You have put your all into developing your business and you want your product to get to its target market in the most effective way possible. The choice of retail vs wholesale, or even a bit of both is a big decision. Read this article to discover the options available to reach your customers and help decide what is the best model for your business.
First things first, what is the difference between a wholesaler and a retailer? And why are those differences important?
A Wholesaler is a person or company who sells products in bulk to various outlets or retailers for onward sale import from turkey. Wholesalers are able to sell their products for a lower unit price as they are selling in bulk, which reduces the handling time and costs involved. The Wholesaler may also be the manufacturer or producer of the product, but they don’t have to be.
A retailer is a person or a company who sells products directly to their customers for a profit. The retailer may be the manufacturer of the product, or may acquire relevant products from a distributor or a wholesaler.
Being a wholesaler gives you access to a diverse range of outlets and allows you to reach a large customer base. Offering your product as wholesale allows a larger audience access to your wares, therefore you are able to grow your business quickly. This can drive interest for your product and can make you attractive to retailers who can see that there is a solid audience for your goods and are more likely to want to stock your product.
Acting as a wholesaler is a great way to build awareness for your product. Instead of consumers having to purchase exclusively from a particular shop, be it virtual or brick and mortar, consumers can see your product in a variety of outlets. It can allow a wide range of consumers who might otherwise not have been aware of your product to build a relationship with it.
As a wholesaler, you can take advantage of a method of selling known as drop-shipping. A retailer or merchant sells the product, but doesn’t own the inventory. Instead, the order comes directly through to you and you dispatch the product directly to the customer. By doing this, you gain the advantages of being a retailer (such as targeted branding and a direct line to the customer), while a specialist retailer handles the front end of things. You retain ownership of the inventory.
When drop-shipping, the system at the center of your business should offer you the flexibility of being able to differentiate your drop-ship orders from others. Whether this be in the form of a drop-ship symbol against orders, a different order status or a report filter, you should be able to separate out these orders at a glance, quickly and easily. This allows for simple and effective reporting, as well as your team being able to process the orders quickly and in the correct way, according to your drop-shipping workflows.