The craze of B2b business is increasing day by day and it is becoming the major force these days even in the international market as well as the global business. In the case when you are already having a wholesale business then not having a b2b marketing website is a great mistake. It is time for all the wholesale business persons to adopt the b2b marketing strategy otherwise they are missing a great opportunity.
In US and many other big market and e3ven in the global market, the B2B business is considered as the most lucrative business for all the entrepreneur. Here in this guide, we will understand what B2B whole sale business is and what are the benefits of operating a B2B wholesale business.
What is B2B wholesale business?
B2B business or the business to business wholesale business is a kind of business opportunity where the entrepreneur is selling products in bulk amount to the retailers or other businesses. Basically B2 B business in easy language is the business between two businesses from the manufacturer to the wholesaler or from the wholesaler to the retailer. In this kind of business, the products are sell in bulk quantity to the other businesses.
The B2B company will sell the product in bulk to other company. And, the other companies will either use the product for the manufacturing of their products or will sell the product to the retailer allowing them to resell it in small quantity or will itself resell the large products to multiple customers in small quantity.
Since, B2B wholesale business is often referred to the larger market and thus is often associated with the term big box retail. These are the companies that sell products in large amount to the retailer companies like Walmart, Target, and many other well established retailer companies.
The big box companies are those that targets on buying the products in very large quantity for resell via ongoing relationship. When any B2B wholesale company starts business relationship with big box type retailer companies, then they will get the option to earn a big profit with very little flexibility.
What are the key difference between the B2B wholesale and the wholesale business?
Well wholesale business is a kind of business where the products in large quantity is sell to the retailer or other companies. B2B business is also a same kind of business but is bit different from the traditional wholesale business. In wholesale, the system is simple where the products manufactured or purchased from the manufacturers are sold to the retailers in large quantity.
But when the wholesale business starts its ecommerce website, then it is more similar to the B2B wholesale. Wholesale e-commerce business is basically the B2B whole sale business where you also sell the products in bulk to the retailer companies or raw material to the manufacturing companies in bulk instead of selling products to individual customer.
Both these wholesale model that is traditional wholesale model or the B2B wholesale model I almost same but the B2B wholesale system is having some more benefits over the traditional wholesale business.
With B2B wholesale, it will be possible for the businessman to reach more customers. Since your wholesale business is now online, this means that now you can get the customer access from the international market as well. Also, it is possible to automate all the time consuming manual processes in B2B business which is might not be possible in the traditional wholesale business. Using the right platform like inventory management, checkout, and billing, it will be easy for the B2B businessman to manage their business. Having an e-commerce website will also help the wholesaler businessman in getting the insight and data associated with their business. With e-commerce website, it is possible to personalize the service page and improve the customer service and help them enhance their experience with your business.
Benefits of B2B wholesale
Following are some benefits associated with the B2B wholesale business:
Increased AOV and volume
Since in wholesale business, there is dealing of products in bulk and large volume which means more order value and thus more profit. Also, in the wholesaler companies, deals almost lasts for long term and this results in significant higher average order values and thus more order volumes. When the order is more, this means profit is also more.
Better approach to customers
Since with B2B wholesale business, the company is going to have their e-commerce wholesale website. This website will help the company to get the order not only form the local retailers but from the retailers all around the world.
With e-commerce wholesale website, the company will get the benefit of wider approach and sometime the approach may be up to the international market. With the effective e-commerce wholesale website, it is also possible to get the order in bulk from the international market and thus more profit.
Accurate insight and data
With an e-commerce wholesale website, the company will get the option to see the customer insights and data. They will get the option to understand the demand of the customers by seeing the page which is in the trend and thus the company can customize their products in order to make it more alluring to the customers.
Better customer experience
Since with website, the company can better understand their customer and thus can personalize the service in order to enhance their experience and thus great reputation among customers.
Enhanced control over supply
Since the retailer companies mostly rely on their B2B wholesaler and thus provide the opportunity to the B2B wholesale company to have better control over the supply chain process.
Increased brand visibility
When the B2B wholesaler company sells their own brand products in bulk to the retailer and the retailer again resell the same brand product to the final customer which means more brand awareness both by the company itself and the retailer company.
The bottom line
So this was all about the B2B wholesale companies 2021!