Wholesale eCommerce is the practice of digitally selling products in bulk to retailers, businesses, or other buyers at a discounted price.
The wholesale eCommerce model is growing in popularity and is used by both large and small businesses. In 2021 alone, the market topped $13 trillion.
The wholesale eCommerce model creates greater efficiency because of the ability to place larger orders and ship directly from the manufacturer or distributor.
In this Wholesale Gorilla guide, we’ll outline:
- Why Do Wholesalers Need eCommerce?
- How Wholesale eCommerce Works
- Features of Wholesale eCommerce
- What Are the Benefits of Wholesale eCommerce?
- What Are the Challenges of Wholesale eCommerce?
- What Are Best Practices for Wholesale eCommerce?
Why Do Wholesalers Need eCommerce?
eCommerce gives wholesalers the opportunity to reach a larger customer base and boost sales.
With an online presence, wholesalers can easily reach customers from all over the world, allowing them to expand their business and increase their profits.
Through eCommerce, wholesalers also offer discounts and promotions not available in traditional brick-and-mortar stores.
How Wholesale eCommerce Works
Setting Up An Account
The first step is for buyers to register an account with the wholesale eCommerce platform, such as Wholesale Gorilla.
Buyers will provide business details such as company name, address, and contact information, as well as any necessary documents like business registration or tax ID numbers.
Finding Products
After setting up an account, buyers can begin browsing through available products on the platform.
Products are usually categorized by type, industry, or brand, making it easy for buyers to find what they are looking for. Buyers can also use filters to refine their search, such as by price, quantity, or shipping location.
Placing An Order
After a buyer has selected the desired products, they can place an order through the wholesaler’s website.
Buyers will specify the quantity of each product and provide shipping information. This information can be compiled via Line Sheets. Click here to review our Line Sheets guide.
Payment is made at the time of order placement, either via credit card or other digital payment methods.
Order Tracking
Once the order is placed, the buyer can track their order status through the wholesaler’s website.
Buyers can view updates on when the order is shipped, expected delivery dates, and tracking numbers.
The buyer can also communicate with the wholesaler or manufacturer through the website if there are any issues or questions about the order.
Key Features Of Wholesale eCommerce
• Bulk ordering – provides an opportunity for customers to purchase products in large quantities, often at discounted prices.
This can be especially beneficial for retailers, as they can stock up on inventory at a lower cost. This allows them to offer competitive prices to their own customers.
Plus, bulk ordering reduces the frequency of placing orders, saving time and effort for both the buyer and seller.
• Discounts and promotions – incentivize customers to purchase more products.
Offers can range from seasonal discounts to free shipping for orders that qualify.
• Inventory management – ensures that wholesalers carry enough inventory–or aren’t sitting on too much inventory.
Wholesale eCommerce platforms provide inventory management tools, allowing wholesalers to track inventory levels, set up automated restocking, and track sales trends to optimize their product offerings.
• Shipping options – provide choices to customers such as free shipping or flat-rate shipping.
Providing multiple shipping options provide for a convenient and flexible purchasing experience that helps businesses attract and retain customers.
• Customer accounts – enables customers to track their orders, view order history, and access exclusive discounts and promotions.
The ability to create an account provides a more personalized experience for customers and can help build long-term relationships between wholesalers and customers.
• Payment processing – should be able to handle multiple payment methods, including credit cards, PayPal, and ACH payments.
A reliable payment processing system is essential for building trust and ensuring that transactions are secure and efficient.
What Are the Benefits of Wholesale eCommerce?
The benefits of wholesale eCommerce include:
Increased Sales
- By selling products in bulk, wholesalers can boost their sales and profits.
Lower Costs
- Selling items in bulk helps to reduce the cost of doing business, as it eliminates the need for marketing spending and allows for larger orders.
Reach A Wider Audience
- With an online presence, wholesalers can reach customers from all over the globe.
Easier Inventory Management
- An eCommerce platform makes it easier to keep track of inventory and ensure that there is always enough stock on hand.
Improved Customer Service
- With an eCommerce platform, wholesalers can provide better customer service by offering discounts and promotions, as well as tracking orders and providing support.
Increased Brand Recognition
- An online presence helps to build brand recognition and trust with customers.
What Are the Challenges of Wholesale eCommerce?
Although there are many benefits to using a wholesale eCommerce platform, there are also some challenges that wholesalers should keep in mind. These include:
Increased Competition
- With an online presence, wholesalers may face increased competition from other businesses selling similar products.
Security Risks
- An eCommerce platform needs to be secure in order to protect customers’ data and prevent fraud.
Technical Issues
- Wholesalers need to ensure that their website is up-to-date and functioning properly in order to provide a high-quality customer experience.
Shipping Costs
- Wholesalers may need to factor in shipping costs when setting prices for their products.
What Are the Best Practices for Wholesale eCommerce?
To achieve success with a wholesale eCommerce platform, wholesalers should follow these best practices:
Utilize Customer Segmentation
Wholesalers can segment their customers based on factors such as order history, purchasing behavior, and demographics.
By understanding these different groups, wholesalers can tailor their marketing efforts and provide personalized experiences.
For example, wholesalers can send targeted email campaigns or offer customized promotions based on a customer’s purchase history.
Offer Discounts And Promotions
Discounts and promotions can attract customers and encourage them to make purchases.
This can include seasonal sales, bundle deals, or limited-time offers.
Wholesalers can use these tactics to incentivize customers to purchase more items or to move inventory quickly.
Use Analytics
Analytics can help wholesalers track customer behavior such as purchase history and product preferences to identify areas for improvement.
Wholesalers can use this information to optimize their product offerings, pricing strategies, and marketing efforts.
Analytics also can help wholesalers track their website performance like bounce rates and conversion rates to identify areas for improvement.
Excellent Customer Service
High-quality customer service is essential for building strong relationships with customers and ensuring that they have a positive experience to keep them coming back.
An elevated customer experience includes prompt response to customer inquiries, accurate information, and flexible return policies.
By investing in customer service training to handle complex inquiries and provide top-notch service, wholesalers can significantly improve their eCommerce experience for customers.
Utilize Social Media
Social media can be a powerful tool for wholesalers to reach potential customers and build brand recognition. It’s also a platform to share product updates, promotions, and industry news.
By creating a strategy and posting content consistently, wholesalers can use social media as an extension of their eCommerce website presence.
Invest In Marketing
Investing in marketing strategies such as SEO, email campaigns, and pay-per-click advertising can help wholesalers reach more customers and improve their online visibility.
For example, SEO can help elevate a wholesaler website’s ranking on search engines, making it easier for potential customers to find the site.
Email campaigns can tell a brand story and help promote new products or discounts to existing customers, while pay-per-click advertising can help drive new traffic to the website.
83% of B2B businesses also report that they are differentiating from their competition by producing better-quality content marketing, according to Content Marketing Institute.
Utilize Automation
Automation streamlines processes such as order fulfillment and customer service, allowing wholesalers to focus on other aspects of their business. It also reduces errors and improves efficiency.
This can include using automated email campaigns to follow up with customers, or implementing a chatbot to handle common customer inquiries.
Offer Multiple Payment Options
Providing customers with multiple payment options, such as credit cards, PayPal, and ACH payments, makes it easier for them to make purchases.
By providing this payment flexibility, wholesalers will reduce the risk of abandoned shopping carts, increase the likelihood of customers making a purchase, and appeal to a wider range of customers.
Create a Wholesale eCommerce Platform With Wholesale Gorilla
Wholesale Gorilla provides merchants with the tools they need to build a thriving wholesale business on their Shopify store.
Our platform helps you create a wholesale portal on your online store, allowing approved customers to log in and shop your existing inventory with customer-specific prices and powerful wholesale features.
Click here to learn how our Wholesale Gorilla platform works and contact our team to get started with your wholesale offerings today!
