Everyone wants success in life and usually, success is interlinked with business success. What if I tell you 25% of the businesses fail within 2 years of operation? Do you think you can survive in the business world without any planning and strategy? It is said that the first 2 years of your wholesale business will be the learning and experience years. Now think in your learning years the chances of loss are high. Without considering business factors starting your business is riskier. That is why we are here to enlighten you to start your business with full command over your wholesale business.
What is a Wholesale Business?
Wholesale is a business that deals with buying and selling a large number of products. In simple words, wholesale is a bulk business. As products are sold and bought in large quantities so the price per unit is lesser than the retail prices. This is how a wholesale business enjoys success.
The Workflow of Wholesale Business
There are different ways of wholesale selling. Manufacturers sell their products to wholesalers. Now wholesalers resell these products in bulk to other retailers or sell it to their customers as retailers. This way a wholesaler works as a retailer and distributor altogether. This multiplies the profit.
How to Set Up a Wholesale Business
There is a checklist. Check each box before investing your sweat blood money in a wholesale business.
- Identify Your Market
You need to identify the market for your business. Not every market deal in all types of products. As a wholesale business, you need to find dealers, other stores, and customers in one place. Explore market. Evaluate your competitors. You can never win a fight if you do not know anything about your competitors. You have to compete with their quality, services, and prices to secure your place.
- Find Location for Business
Along with identifying your market you have to find the best location for your shop and warehouse. In many cases businesses keep their offices and warehouses separate due to expensive space.
- Find Manufacturers
After getting an office you need to start operating your business. This is only possible when you start working with manufacturers as a wholesaler for the goods. Nowadays, many companies have set sales targets for you to achieve. In this way, you cannot flourish as a wholesale business. Always choose a company that works with you without pressurizing you to sell.
- Set Up a Website
According to a recent survey, people trust websites for business more than social media pages. Your website is your online shop without bricks. Anyone can land here to get the products they desired. Your website can be used to accomplished many tasks. It helps you to promote your business. It increases your credibility in the market.
Important Factors to Consider Before Starting a Wholesale Business
Before you leave your salary-based life and start your own venture there are some factors that you must consider.
- Inventory Management
As a wholesale business, you need to keep a large number of products in your warehouses so always keep an eye on your inventory to avoid loss. For this purpose, you need to invest in an advanced inventory management system. Always explore the market and get the best-fitted inventory management system following your business. You cannot run your wholesale business manually without mistakes and these mistakes can affect your business in the long run. Many inventory management systems like SeeBiz Inventory offer 3 months free premium trial for you to decide. SeeBiz Inventory manages and tracks your stock. With the reorder levels it allows you to set reorder points to prevent overstocking and overselling situations. It provides you with day-to-day activities details. You can get inventory, sales, and purchase reports to assess your business. You can add and export your business contacts in bulk. It categories your contacts as vendors and customers to simplify the process. The item module empowers you to adjust the items following your business. SeeBiz Inventory generates automated sales and purchase orders to smoothen sales and purchase flow. To manage the workload, you can assign different tasks to your employees in the system.
- Digital Platform and Marketing Plans
Another point to consider is your presence on a digital platform. Without having a digital existence, you cannot cross the boundaries. An appropriate platform allows you to use its traffic and promote your business. It saves you marketing and promotional cost that you can use by providing different deals to customers. A reliable online platform such as SeeBiz is what your business needs to grow. SeeBiz is a digital wholesale market. SeeBiz allows you to use its platform by registering your business free. It connects you to other businesses by its social networking system. With this direct connectivity, you can establish new business relations. You do not need to generate your own traffic as SeeBiz already has thousands of businesses and customers available on the platform.
- Finance and Payment Methods
You must think of managing your finance properly. Your finance is correlated to your sales and your sales are connected to your reach. Before taking an initiative and managing the entire process think of an appropriate tool to deal with all finance functions. Next on the list is payment methods. You have to determine which payment method suits your business well. Cash or card, both are approved payment methods in the market.
Shipping is a challenge for many wholesalers. Your method of delivering the goods to your customers matters a lot. There are multiple options in the market to ship a consignment but you have to consider a few points before choosing any shipping method. Cost, quality, and time. These three factors influence your business in the long run. Keep them in mind before choosing any shipping courier. You have to decide whether you are going to charge your customers for the shipment separately or going to include the charges in the determined prices. You can offer free delivery as many businesses offer free shipment to promote their business. Consider browsing the Load board at Shiply to find the most suitable shipping provider for your business.
- Customer Services
Your customers are your assets. You have to satisfy them no matter what. You can use different marketing stunts to lure them. With free delivery attracting your customers is a common tactic in the market. Use social media and surveys to get their feedback. You can use different tools to get connected to your customers. Different tools like HubSpot, Olark, and Zoom offer their services to get feedback from your customers. Make sure to resolve the issues within 24 hours for your customers. This factor has a great impact on your business so you cannot afford to ignore it while considering other factors.
We hope after reading this blog you will be able to understand what your wholesale business requires. Start your venture with the confidence to rule the business world. It is said in the business it’s not the product it is your way of presenting that product that earns you success. Before starting your wholesale business, consider all these important factors and enjoy a smooth ride to the peak.