As many know, Shopify is one of the most popular e-commerce platforms for selling products. However, is Shopify good for wholesale? Shopify is becoming increasingly popular among wholesale businesses. If you prefer operating your business and product development rather than marketing and direct sales, wholesaling would be a game-changer for you and your business.
What Is Wholesale on Shopify?
Wholesale is a business that sells large quantities of a product at discounted rates to retailers, who then sell the products to consumers. However, thanks to different e-commerce platforms, there is a “new” wholesale business model that allows wholesalers to sell products to retailers, resellers, and consumers.
Your wholesale store should bring an excellent customer experience and delight potential customers. That’s where B2B E-Commerce by Shopify comes in. B2B features are built directly into your admin dashboard, allowing you to set prices, payment methods, currency, and more. You can also access Shopify’s customizable features, including themes, discounts, API access, etc.
Benefits of Using Shopify for Wholesale
Let’s dive into a few of the many benefits of using Shopify for your wholesale business needs.
Simplifies the Buying Process
The right wholesale e-commerce platform, like Shopify, helps wholesale businesses simplify the buying process. Building a B2B website so customers can find the necessary information rather than contacting you for details is easier than ever. Optimizing your wholesale e-commerce website for search engines will help customers find you more easily and quickly.
Automates Wholesale Processes
B2B E-commerce by Shopify can help:
- Create custom pricing and discounts for specific customers.
- Customers purchase, track, and reorder products.
- Review orders before sending out invoices.
- Unify inventory and order management.
With e-commerce automation, you can spend more time on your business’s needs instead of managing orders over the phone or via email.
Volume Sales
Selling large quantities of products increases revenue from a single order.
Stable Customer Relationships
When wholesaling, long-term relationships are established with retailers and other businesses. When they continue buying from you every month, you can know what your monthly revenue will be.
Lower Promotional Costs
It is optional for a wholesaler to spend lots of money on marketing and advertising like retail businesses, which saves you money.
Challenges With Wholesale
Where there are benefits, there are also some challenges related to wholesale:
- Thin profit margins of 15% to 30%.
- Inventory management can be complex without good inventory management software.
- Increased competition with local and international suppliers.
- Capital is intense as it takes money upfront for inventory, warehousing, and logistics.
- Payment and credit risks if customers default or delay payments.
Even with the challenges, the right strategies can help your wholesale business thrive and grow.
Are You Convinced That Shopify is Good for Wholesale?
So, is Shopify good for wholesale? Yes, it is. With the proper e-commerce platform and resources, you can create a thriving wholesale business on Shopify, even with the challenges that go along with it. The benefits of wholesale far outweigh the challenges once you learn how to navigate them and use them to your advantage.
At Website on Demand, we can help you with your wholesale adventure. Our Wholesale Pricing Now app integrates seamlessly with your wholesale Shopify store to provide vendors with an exclusive pricing model that rewards customers with layered discounts the more they shop.
