Wholesale eCommerce Explained: Process, Pros, and Top Platforms

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Wholesale eCommerce Explained: Process, Pros, and Top Platforms

Modern eCommerce isn’t limited to direct-to-consumer (DTC) retail. In fact, multichannel eCommerce solutions have paved the way for DTC businesses to start engaging in wholesale commerce with other businesses. Read on to learn more about wholesale eCommerce, its advantages, and how to get started.

What is Wholesale eCommerce?

Wholesale eCommerce refers to the selling of goods in bulk instead of as individual or few items to another business rather than the end customer. It is carried out via online platforms, and the wholesalers offer those goods at discounted prices. Alibaba, BigCommerce, and Shopify are among the top wholesale eCommerce platforms where most businesses start out selling on. This enables manufacturers and online businesses to conveniently find distributors and compare price and product offerings of various suppliers with ease.

Advantages of Wholesale eCommerce

If you are unsure why one must consider wholesale eCommerce when running a business, here are a few of its top benefits:

  • Better Scalability. Wholesale eCommerce business model ensures faster growth with time resulting in increased sales and lesser investments.
  • Cheaper Rates. Wholesale pricing enables you to procure goods at much lower rates than retail pricing.
  • Higher Unit Sales. Get bulk deals and discounted rates to ensure higher unit sales.
  • Automated Process. Automation of the lengthy wholesale processes minimizes paperwork and leaves time to focus on building a business strategy.
  • More Prevision in Predicting Profits. Wholesale eCommerce usually involves dealing with long-term clients therefore profit margins are more predictable.

Step-by-Step Guide to Becoming a Wholesale Supplier

Have you been planning on trying your luck as a wholesale supplier? Here's how to strategically enter the eCommerce world as a wholesale supplier.

Study the Market

The market is saturated with countless businesses that have already built a loyal customer base, and to compete with them, you need to study the market thoroughly and with keen interest. Look for your competitors' weaknesses and research the interests of customers. Think along the lines of what can be done better while identifying your target customer.

Choose your Product Category

While offering numerous products may initially seem like the wiser option, it’s better to focus on building a product niche. Think of something that requires less investment and has a decent profit margin. Search for an in-demand product and research competitors and manufacturers. This way you can build a partnership with a manufacturer of your chosen product and build a name for being credible and providing consistently good quality.

Plan your Wholesale Fulfillment and Pricing Strategy

The next key step is planning out your order fulfillment and pricing strategy beforehand, so your business moves seamlessly. You can make use of an eCommerce marketplace like Alibaba. Plan out how you will store and ship the goods, and if you would prefer a 3PL partnership with a logistics company like ShipBots to handle your wholesale fulfillment.

When it comes to pricing, research the offerings of your competitors and present a price tag that is appealing to the customer yet sufficiently benefiting for you. A good way to guarantee this is by setting a minimum order quantity. 

Acquire Wholesale Permits and Licenses

Getting the necessary wholesale permits and licenses in a timely manner is important. You will require: 

  1. A reseller’s permit
  2. An employer identification number (EIN)
  3. Sales tax ID for collecting and paying taxes and maintaining a tax record
  4. A licensing agreement for certain products

Choose your Partners

Choosing the right partners will directly impact both your profitability and sustainability. If you are planning on outsourcing fulfillment, look for trusted names in eCommerce fulfillment for a seamless 3PL fulfillment process and profitability.

Establish your eCommerce Website

If you wish to scale your wholesale eCommerce business, simply selling on marketplaces will not suffice. To build a strong brand name and presence, you must establish a detailed and user-friendly website that will not only make it easier for customers to reach you but also boost your credibility.

How ShipBots Makes the Journey Seamless for Wholesale eCommerce Businesses

Establishing a wholesale eCommerce business can be downright challenging and overwhelming, particularly when dealing with high order volumes. While the main challenge is to target the right audience and build a customer base for those just starting out in the wholesale business, as the business grows, maintaining the fulfillment services and logistics can be quite complex on your own.

ShipBots is an expert at streamlining the entire chain of wholesale eCommerce operations, so you can outsource your entire wholesale fulfillment process to them instead of hiring and maintaining your own fulfillment staff. The integrated ShipBots dashboard automates processes, obtaining data from your purchase orders to process and ship orders, thereby lessening manual work and streamlining operations. To learn more about our fulfillment services, you can contact us for a wholesale fulfillment quote.