Take your online business to the next level by tapping into wholesaling. From implementing email newsletters to offering incentives, this comprehensive Website On Demand guide breaks down the finer points of creating a wholesale marketing strategy. Learn how to build connections and drive growth.
Understanding Wholesaling
When e-commerce business owners sell their products by wholesale, they sell bulk quantities of their wares to other businesses, typically retailers, rather than selling directly to individual consumers. Wholesaling involves selling goods at a discount compared to the retail price, so purchasing businesses can resell products at a higher price to generate a profit.
Wholesaling offers several advantages for wholesalers and retailers:
- E-commerce business owners simultaneously sell larger quantities of products for lower production and distribution costs per unit to boost profitability.
- Entrepreneurs can reach a broader market by supplying retailers across different regions or industries.
- Online store owners focus on their core competencies, such as product sourcing, marketing, or customer service, rather than managing individual retail transactions.
- Selling products in bulk may provide a more predictable and stable cash flow than relying solely on individual sales.
The low cost to the retailer and the bulk selling for the retailer provides a win-win situation for both businesses.
Tips for Creating a Wholesale Marketing Strategy
These are our top tips for bulk selling goods to distributors, resellers, and retailers.
1. Define Your Target Audience
Just like you can’t put the cart before the horse, you can’t develop an effective wholesale marketing plan if you don’t know who you’re marketing to. Maybe you want to sell to brick-and-mortar department stores. Or perhaps your target customer is other online store owners.
To narrow your options, check out products potential retailers already have in stock. Are your products a natural fit for their inventory? After all, it won’t make much sense to sell insulated mugs to a t-shirt store owner.
2. Provide Incentives
You have a better chance of making a sale in the crowded wholesale market if you present an irresistible offer. Examples of incentives to add to your wholesale marketing strategy range from limited-time offers and buy-one-get-one deals to rewards for repeat customers and free shipping when buyers spend a certain amount.
3. Go Where Potential Customers Are
By positioning yourself where your target audience already exists, you’re more likely to make a sale. For e-commerce wholesaling, that means listing your business in wholesale directories. You can also research the wholesale marketplace to uncover potential leads.
For this tip, it’s smart to check out the competition. If you notice a wholesale directory that includes competitors, make sure your business appears there, too.
4. Don’t Neglect Your Current Wholesale Accounts
Nurturing existing wholesale accounts is essential to any good wholesale marketing strategy. Acquiring new customers is more challenging and expensive, so your resources are better spent providing great service to current customers. Taking care of current accounts could usher in new business.
To show existing wholesale customers your appreciation, consider offering occasional promotions or discounts. Essentially, you want to treat all your wholesale retailers like direct customers. That means checking in with wholesale retailers to see if they’re happy with your products and whether they want to try a different item or swap a current product if it’s not selling well.
5. Stay On Top of Marketing Spend
Imagine having a great idea for wholesale marketing only to realize you don’t have the budget for it. By rigorously examining where and how you spend every cent of your marketing fund, you’re less likely to overspend or spend inefficiently.
To help, implement key performance indicators (KPIs) into your wholesale marketing strategy. KPIs determine the effectiveness of your marketing campaign and spending. If you aren’t getting the desired returns on your wholesale marketing investments, consider pivoting and investing that time and money elsewhere.
6. Implement Email as Part of Your Marketing Strategy
Even in our modern e-commerce age, email remains a powerful marketing tool. By sending emails to current and potential wholesale customers, you can promote new products, specials, and services. Launching an email marketing campaign is also a great way to share updates about new business developments via newsletters.
With this wholesale marketing strategy tip, consider dividing customers into segments. For instance, buyers may be more interested in specific discounts or products and less interested in company news. Segment customers according to buying history, interests, and engagement to send targeted messages they’re more likely to read from top to bottom.
7. Establish a Network
Although you have an online business, it’s good to venture offline to make business connections. Look for events like trade shows and conferences to attend where you meet and learn from industry experts and network.
Of course, networking online is also a great idea. Use professional networks to connect to potential business partners and customers.
Wholesale Marketing FAQs
Here are other valuable insights into becoming a wholesale marketing master by answering commonly asked questions about developing an effective marketing plan.
How Do You Promote Wholesale?
Leverage your online presence by showcasing wholesale offerings on your online store, ensuring easy navigation and clear information on bulk pricing and ordering processes. Website On Demand’s Wholesale Pricing Now app simplifies creating volume, tiered, and bespoke pricing, eliminating the need for an extra storefront.
What Factors Should I Consider When Selecting Wholesale Products?
Determine product demand in your target market, conducting thorough market research to identify trends and consumer preferences. Additionally, evaluate product profitability, considering production costs, potential margins, and competitive pricing. Also, account for logistics and sourcing and fulfilling wholesale orders.
What Pricing Strategies Should I Use for Wholesaling Products?
Gauge your production and procurement costs to establish a pricing baseline, ensuring wholesale rates cover expenses while allowing for a reasonable profit margin. Remain flexible and open to negotiation with potential wholesale buyers, such as offering customized pricing arrangements to accommodate specific needs and foster long-term partnerships.
Refine Your Wholesale Marketing Strategy With Website On Demand
As you create your wholesale marketing strategy, remember that each step brings you closer to reaching your business goals and establishing fruitful partnerships. Website On Demand’s suite of Shopify apps helps you realize and maximize your online store’s potential. Contact us for more info on our free 14-day trial.
