2.14 billion! Believe it or not, these are the number of online buyers in 2021 according to Oberlo. The eCommerce industry is rapidly growing. Thus, there is an evident increase in businesses and brands that are creating their space in this industry.
There is a lot of competition in the market at present. It is very important for the brands to not only manufacture the products quickly but also to transport them as early as possible. When getting into this highly competitive market, the brands usually forget the most important step - looking for a good wholesale distributor.
It requires a good distributor to reach the end user and get to know their feedback. Wholesale distributor plays a crucial role in making a brand successful. A reputed and knowledgeable distributor will help in the speedy scaling of the brand and reach the targets easily and effectively. Having a good wholesale distributor gives you relief from all the logistics involved in shipping and packing.
Here are 4 tips you should keep in mind while looking for wholesale distributors.
Every industry has a different way of working. Learning about the industry helps in knowing the channels that operate for that particular industry setup. There are specific wholesalers for specific kinds of markets. This channel varies for different regions, products, and countries.
There are several B2B marketplaces where brands find it easier to look for wholesalers and understand the whole process. Registering on such platforms helps to reach distributors across the globe. Also, it lets the brand know more about distribution chains.
Knowledge about the distribution chain of the industry gives clarity when choosing which kind of distributor will be an aid for your business. For small businesses and new brands, one might have to start with small wholesale distributors that trade at higher unit prices.
Slowly and gradually, as the brand gets established, the trade increases and the unit price goes down. At this point, one can also consider approaching bigger wholesale distributors.
After knowing about the industry, look for the contacts of wholesale distributors by either contacting the manufacturer or by phonebook listings. The first contact is of great importance. Wholesale distributors can be contacted via e-mail or cold call. If there is no response, a follow-up call or e-mail can be done after a few days.
The first interaction should be formal and crisp. One must try to know about the wholesale distributors by asking about the things such as unit pricing and the regions they operate in. Also, it is advisable to tell about the expectations of the brand as well.
While telling about the expectations, be as real as possible. Talking about unrealistic goals and minimum order requirements and pricing might make one appear boastful and set a wrong impression.
However, it would be better if the wholesale distributor is told that the brand is looking for the best pricing and order requirement. Be clear about the fact that the interaction is to get the best deal and one might contact other distributors and competitors in the market.
Building networks is another important aspect. More experienced brands and businesses in the same industry are the best organizations to gather data about wholesale distributors. Online forums also provide a lot of information about the market and industry chains. It is always good to actively participate in them and build good connections.
If eager to display, demonstrate, and learn the particulars, trade shows are excellent places. Trade shows give a chance to retailers and brands to talk and discuss with manufacturers, dealers, and wholesale distributors.
It is an opportunity to reach the maximum number of distributors in a day. Also, trade shows allow a face-to-face conversation that is much more fruitful than telephonic or online communication.
Making profiles and building connections on professional networking social sites is also helpful to reach out to distributors who are interested in dealing with the required kind of products.
Before choosing a distributor, it is important to know about the area and region in which the distributor aims to sell the product. This region should be a profitable and suitable market for the products. It should have the maximum possible target customers for the kind of products the brand wishes to sell. The brand must also know if the distributor aims to shift or expand this area of distribution further.
The distributor should have a good reputation in the target market. Good transportation and customer-approved packing methods of the distributor also help the brand to get a firm hold in the targeted region and area of distribution.
The payments, credit policies, and finance of the distributor should be taken into consideration if one is looking for a long-term partnership. The brand must look for the recent credits and purchases of the distributor as well. The liberal credit policy of the distributor is helpful in the marketing of the products.
For a successful partnership, one must be aware of the business goals of the distributor. Similar goals help in boosting the profits of the business. For instance, if the brand aims to focus on a particular industry in a particular region, the distributor must also aim to build a better marketplace in the same target region.
Trying to understand the distributor and his goodwill is even more important. Distributors must be well-versed in the market culture and new changes, if any, in the industry. They must know about the demand and supply chains and their rising and falling trends.
A wholesale distributor should have enough resources to stock the products safely. Knowledge of distributors in stock management contributes to the business. The manufacturer gets an idea about the quantity in which they can prepare the stocks beforehand.
Hence, brands must pay close attention to the goals, market values, and goodwill of the distributor and research well while choosing the wholesale distributor for their business.
The eCommerce industry has made it easier to not only set up a brand but also to find distributors in the market. However, it is important to keep the above-mentioned aspects in mind while looking for a distributor.
Different distributors are available for different kinds of industries and products. One should choose them wisely as it is the distributors that help in building up the brands. Customer feedback and suggestions are too based on the services of the distributors often. One of the best places to research and find information about this is a B2B platform.
Among the growing industries in the world, fashion and clothing are one of the most rapidly growing industries. The global apparel market is expected to grow at a CAGR of 9.8% between 2021 and 2022. Many new small businesses and brands in the fashion industry are being established every day.
Fashinza is a B2B apparel manufacturing platform for businesses that are looking for manufacturers and distributors in this industry. All one has to do is register on the platform.