The traditional form of sales refers to direct selling to consumers. Whereas, a wholesale transaction occurs when products are sold to retailers or manufacturers. This is also referred to as B2B, or Business to Business. In other words, B2B wholesale only happens between a wholesaler and other businesses, and the consumer is not involved.
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With a B2B platform, businesses can showcase their products or services more effectively to potential wholesale buyers. Since everything is shifting to the internet, it is a must to have a platform and showcase all the products so that companies eagerly connect with them for business transactions.
But, if you build a B2B platform to increase the wholesale, you should also learn ways to cultivate loyalty and increase the buyers’ lifetime value, while building a new customer base via promotions and referrals. So, check out our four strategies to boost your wholesale sales and profits.
Determine The Pricing Strategy
A deciding factor of buying products in bulk is how much of a lower price the buyer will get and still benefit from stocking up for reselling. The price for 100 or 1000 units has to be significantly lower than the flat rate to stimulate bigger purchases.
When making the financial plan, fix the ideal cost of making each unit, and see how low the price can go while still making you some profit. For a $30 product, your average production cost could be $18. In that case, you can offer a $24 price for a 100 unit purchase. Ultimately, it is your choice to offer a reduced price and forecast its long-term benefits.
Additionally, it’s best to include the goods and services tax (GST) in your pricing strategy. You may utilize a GST calculator to determine the right net or gross product price. This calculator is usually an online tool that lets you add or deduct the GST from the sales cost. All you need is to enter some information like the GST rate and selling price, and it will show you the total value of your product, including or excluding GST.
Simply put in all the relevant information about your product to get an exact or accurate price point. This innovative approach can eliminate human error and simplify the pricing process. Thus, saving you time and effort so you can focus on more important tasks to boost sales.
Segment Your Product Niche
Just like the pricing strategy, you have to be well prepared about the product niche to generate solid leads. And when talking about getting wholesale buyers’ attraction to the brand, you have to think differently from the traditional individual-level marketing.
First, you need to decide which niche of products you want to work with and design the offering accordingly. A good example of it is the GO Wholesale site. Since it only offers brand new and restored electronic merchandise, you will find smartphones, laptops, and TVs here that are ready to be sent to potential buyers. In fact, it keeps around 30,000 units of retail-ready refurbished electronics in stock at all times.
The lights and lighting market has also seen a rapid demand in the wholesale market. According to forecasts, the segment is set to reach $24.2 billion by 2025 – a jaw-dropping annual growth rate of 20.9% from 2020. Interior design and decoration have turned into a form of entertainment at home since the restrictions of the pandemic. So items like LED strips have reached the top-selling chart.
A good third example are home plants. They were already a big hit before the pandemic, but spending more time indoors has made people take care of their green friends to a larger extent. Sales for houseplants have seen a 50 percent increase, as found by the National Gardening Survey.
Provide Seamless B2B Customer Experience
Implementing a robust B2B e-commerce platform can increase the chances of seamless purchase for your wholesale buyers. It is critical for conversion and customer retention as well. Offer access to customized information through a mobile app and encourage your buyers to order from you whenever and wherever they want.
A well-streamlined process helps your buyers to save on time and money and reduce errors, delays, and order backlogs. This also means they will be influenced to order and reorder from your wholesale business instead of the market competitors. You can go one more step ahead and offer fast shipping to your B2B customers. When giving a shipping option without additional costs, your customers are more likely to order from you.
A product demand forecast also helps to plan the production accurately and avoid dealing with delays. Such incidents are harmful to flawless customer experience and you want to avoid them at all costs to keep the trust and relationship with your customer base.
Offer Promo Code To Retailers
Retailer businesses are an inseparable part of good sales and distribution. They are responsible for both dealing with the customers’ demand and influencing wholesalers’ supply.
Undoubtedly, building good relationships with retailers will smoothen your way to run the business. Moreover, they can recommend your site to other retailers for bulk purchase, all the while expanding your sales.
You can offer them promotional codes to apply for bulk purchases, both offline and online. The invasion of online resell buyers is getting intense. Promotional codes will play a major role in grabbing their attention. Offer them the codes through Facebook, Twitter, and other social platforms to enable you to expand your market and achieve more sales.
Provide A Leading Customer Service
Make sure both of your offline and online buyers are getting assistance that meets the definition of the best customer service. Train the sales and customer service representatives so that they interact with customers in an expected and friendly way and allow them to make decisions that put the customers before everything.
If your products are tech-oriented then train your key accounts so that their employees can deal effectively with customers and satisfy them with the best service. In addition, you should also consider social media platforms as an integral part of your customer service strategy. Your staff must attend to or respond to customers’ queries and concerns as soon as possible to nurture your business relationships.
It’s essential to note that creating an excellent customer service experience is not a one-time event. You have to continuously work on it and always be willing to improve it. This will result in increased customer satisfaction and loyalty, which will benefit your wholesale business in the long term. After all, customers are the rationale behind any business’s success.
There is no denying that the above-mentioned marketing activities will keep adding value to your B2B transactions with additional revenue for the years to come. If you can ensure and establish that your product has a significant level of demand across the globe, you can sell in bulk through your wholesale website and provide services to other businesses. This will help you make a quick profit and secure potential long-term buyers for your organization.
Wholesale marketing can be a fantastic way to deal with plenty of customers. To make the most out of this approach, you need to have some great strategies in place for managing it and expanding your sales. These are just a few of the best wholesale marketing approaches we’ve seen so far – but they should give you a good idea about what works well when dealing with such an expansive customer base.
When you are ready to expand your product line, or if you have been considering the wholesale marketing approach for a while now, it is time to consider these strategies. Remember that there will be plenty of work with these strategies and planning on how best to manage it will help ensure success in expanding your sales.