Seven Ways Selling Wholesale Can Boost Your Business

If you're looking to start a business, selling wholesale can be an excellent way to get the ball rolling. Wholesale is somewhat a new market that can help make money and diversify the income stream. So, whether you're looking for a new market or want to increase revenue quickly, selling wholesale instead of retail can be a great move.

Unless you know what you're doing, wholesale can be a challenging game to play. The following are some benefits of selling wholesale:

Exploring new markets

You can expand your market reach through wholesale businesses and tap into new markets that might not be familiar to you. For example, if you’re interested in selling electronics, GoWholesale is a leading wholesale supplier of refurbished electronics from all popular tech categories and brands.

There's a huge market for refurbished tech you can tap into.

Control over inventory

In the wholesale business, you don't have to worry about having loads of inventory as you do in retail. Instead, you just need to make sure you have enough material and the quantities required to manage on-time delivery to your customers. 

As for the unsold stock, you don't have to carry it in your warehouse all the time. Therefore, you can eliminate big chunks of stocks that lower your overall cost.

Low marketing costs

Selling wholesale comes with a huge benefit in marketing costs because you only need to target specific buyers and distributors. On the other hand, if you’re selling retail, you have to come up with campaigns, coupons, and different ways to attract customers, not just for one product but all the products in your store.

However, if you're applying a wholesale strategy to your business plan, it will reduce the cost required for marketing the product you want to sell.

High-profit margin

Doing wholesale business opens up a huge opportunity to enjoy higher profits, as many manufacturers and suppliers give discount offers when you buy in bulk. For instance, you benefit from a significantly lower price on an item if you purchase it directly from the manufacturer. Since fewer parties are involved, the overall cost can be substantially lower, and you can enjoy a wider profit margin.

As for the retail business, there is no easy way to get huge discounts, which means you won't enjoy the high profit you get in wholesaling. This is what you can enjoy most: high margin and discounts next to higher income.

Wider brand visibility

Visibility is the first step in making profits out of your business, which means that selling wholesale can help you expand your market and attract a broader customer base to purchase your products.

Selling wholesale gives more comprehensive brand visibility because it's not easy for small-business owners to have their products locally visible. When you sell wholesale, you use suppliers and distributors as the medium of getting connected to buyers around the world.

Fewer customer complaints

When you sell directly to customers, their complaints can be overwhelming and time-consuming because you deal with many of them directly. However, customer complaints are not something you’ll have to deal with when selling wholesale, as all transactions occur between suppliers and distributors.

If distributors are the ones who distribute your products to their end-users, you won't have to deal with customer complaints directly. However, even if they do complain, it’s up to your distributor how to handle them.

Easier in managing and tracking

In wholesale businesses, you won't need to put too much effort into managing and tracking the inventory because you only deal with suppliers and distributors, which means you only need to make sure that everything gets delivered on time. You can still track inventory to make sure every product has been distributed properly.

As for retail business, you have to personally manage your inventory because you are responsible for everything that happens to it. For instance, if a customer complains about receiving wrong products or expired items, you’ll be held responsible unless you process returns and refunds accordingly.

Final Thoughts

Wholesale can be a good option for anyone who wants to diversify income streams, expand market presence, or test out new business ideas. What makes wholesale an excellent business option is that you can still enjoy all the benefits without ever having to take risks or worry about market instability.

With selling wholesale, you have more control over your inventory as well as a high-profit margin, which is a great benefit for small businesses that want to expand their markets.