The wholesale industry faces unique challenges as technology, competition and demand evolve. To grow a wholesale business in the modern business environment, entrepreneurs and managers must be aware of the latest industry challenges and navigate complex trends like tangible custom mailer boxes. If you want to increase wholesale sales, consider these tips for developing a long-term strategy.
How to Grow Sales in the Wholesale Industry?
Canadian wholesalers face many of the same challenges as other wholesalers worldwide. To increase sales in the wholesale sector, you must first understand the challenges faced by modern wholesalers and wholesale customers. Then you can develop a business plan for your wholesale business.
Many of the challenges Canadian wholesalers face are due to rapid changes in technology and consumer preferences — both manufacturers and retailers are struggling due to the trend of online shopping accelerated by COVID-19.
Another significant headwind that wholesalers have to overcome is disintermediation, the removal of “middlemen” from the distribution chain. Understanding the challenges and needs of your customers will help you provide the right wholesale services in the age of e-commerce.
A comprehensive understanding of the Canadian wholesaler’s business situation and an in-depth study of the industry’s challenges will help develop strategies to increase revenue.
What service do manufacturers need?
In the COVID-19 and post-COVID-19 environment, manufacturers face their challenges. Manufacturers need to deal with rapidly changing customer demands and tight supply, labor shortages, and new safety regulations. Understanding a manufacturer’s needs can help reduce friction in the supply chain.
Retailers big and small want to keep as little inventory as possible to manage cash flow and working capital. It means they need wholesalers with short lead times and reliable lead times to ensure stock availability.
Packaging, shipping, and delivery fees need to be carefully managed because they significantly impact revenue.
Wholesalers want to hold small amounts of inventory for the same reasons as retailers. Keeping inventory levels in line with demand forecasts is critical. You can’t have unsold goods or dusty merchandise.
Shift to e-commerce
Retailers who supply goods directly to customers manage the entire supply chain, from manufacturing to delivery, excluding wholesalers. Adding services like consignment and direct-to-customer ordering, and custom box packaging can help wholesalers stay ahead of the competition.
Wholesale business strategy
Support timely fulfillment
Just-in-time production is a strategy where companies order what they need when they place an order. If they can meet this tight schedule, they may meet the short-term delivery requirements of most customers.
Provide direct service to customers
Some major online retailers offer marketplaces to sell their products and fulfill their and other companies’ orders. You can meet similar needs by providing direct customer service and shipping services on their behalf.
Excellent customer service
Many businesses fall short when it comes to customer service. To keep customers coming back, they must always leave satisfied. Lead your team to deliver the best possible experience every time you interact with your customers.
Accounts Payable and Accounts Receivable Automation
An automated billing and payment system can save your business time and money and provide the same for your customers. Computerized systems can match purchase orders and invoices, make electronic payments according to set schedules, and provide detailed security controls and cash flow management. It can improve your operations and increase the acceptance of the companies you do business with.
Consider discounts and incentives.
Quantity discounts, limited-time promotions, and bundles can motivate you to do more business with existing customers. Building on existing relationships is often easier than creating new ones, and these offers keep customers coming back.
Generate more leads.
Online and offline sales are still significant. It strengthens your sales team and enables you to attract more qualified leads. Also, remember to take advantage of your existing customer network and expand it with a referral program.
Create a strategic sales funnel.
How do you turn an email or phone number into a sale once you have an email or phone number? Create a high-level product-specific sales strategy, automate your email strategy, and test which actions lead to the best conversions.
Improve the web experience
In the early days of the Internet, banners that read “Site under construction” were often seen. Today, customers expect their websites to be regularly maintained and updated. Providing top-notch web products that are easy to navigate, load quickly in any browser, work well on mobile devices, and encourage more purchases are critical for modern businesses.
Find your way to wholesale profits.
Despite the industry’s challenges, many wholesale businesses in Canada and elsewhere thrive. Wholesale companies can differentiate themselves from their competitors by adapting to rapidly changing customer needs and staying on the cutting edge of technology.
A well-designed sales funnel, excellent customer service, and an efficient operational strategy can take your sales growth to the next level.