5 Tips for Selling Wholesale to Retailers
You’re ready to scale up into wholesale
selling. The problem is, you don’t know exactly where to start.
No matter the reason you’re considering
entering the wholesale market, this article will allow you to understand what
the wholescale landscape is about. You’ll also learn what’s required for you to
start successfully selling your wholesale products to retailers that are
looking to buy.
1.
Identifying the Right Retailers
Before you can identify the retailers you’re going to target, spend time doing market
research.
Here is what you’ll need to learn from your
research:
- Who is your
target customer? - What is their
purchase journey and buying motivations? - Where do they
presently purchase or research?
After completing your market research, begin
identifying the top prospects. If you’re targeting online retailers,
understand:
- Who their
target customers are - How they
acquire their customers - How they
feature their online products
If you’re targeting brick and mortar
retailers, head down to one of their locations and take a look around. Ask
yourself the following questions:
- How do you
envision the shelf placement of your products? - Where are the
products of your competitors? - How much
shelf space will your products require? - Do your
products fit in line with the store’s image?
Once you’ve addressed these questions, you’ll
have a good understanding of the customers you can target.
2. How
Does the Retailer Make Purchases?
Depending on customer types and industry,
customer buying behaviors will differ. As an example, if you want to sell to a
small local boutique you’ll probably be dealing with the owner. If you’re
selling to a chain of restaurants you’ll be dealing with a corporate buyer.
Dealing with a store owner is a relatively
straightforward process. Sure, personalities are different. But at the end of
the day, you know you’re selling to the one that will profit from buying your
products.
Dealing with a corporate buyer can be a bit
more challenging. For example, they may place one order and expect that you’ll
be able to deliver to several different facilities on varying dates.
3.
ECommerce Strategy
Most retailers don’t make purchases by email
or phone anymore. As a wholesaler, you’ll need to embrace eCommerce to be a
player in the game.
There are several options you have:
- Sell on
Alibaba and Amazon - Use a B2C
eCommerce platform that’s been configured for B2B - Use a
dedicated B2B portal for eCommerce transactions
There are pros and cons for each of these
options. Do some research and find out which one is best for your business.
4. How
to Price
This step is vital. As a rule of thumb, your wholesale
price should be around 2.5 times the amount each item costs to the product.
When pricing, make sure you include all costs of labor, materials and overhead.
Also plan for the costs of shipping and shrink.
Set a suggested retail price based on these
margins, making sure the retailer has enough profit built-in as well.
5.
Managing Pricing for Different Customers
When you get into B2B sales, you’ll be dealing
with a wide variety of customers. Some may be small while others may be
multi-national giants. Pricing should be different due to varying purchase
frequency and volume.
The simplest way to keep up with varying
prices is to use pricing lists that detail each customer’s terms and pricing.
This helps you make sure you never give a wrong quote to a valued buyer.
Getting
in the Wholesale Game
Selling wholesale isn’t difficult when you
have the right products and the right strategy. With a little research and
planning, you can help increase your chances of having a successful business.
