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How Small Business Owners Benefit From Online Wholesaling

By: Jackie Eldridge-- 2015-01-02 12:34 pm --
More and more, both ecommerce and brick and mortar businesses rely on online wholesalers for parts, products, materials, and supplies to keep operating. The online wholesale business is growing rapidly. Forbes notes that while retailers took in $4 trillion in revenues in 2013, wholesalers nearly doubled that amount.

There are many opportunities for SMBs in the world of online wholesaling.  Small to medium-sized businesses can realize new savings, increase profits and establish new partnerships to shape the future of online wholesaling.

Cost, Efficiency Benefits

Online wholesalers typically offer better per-unit prices. Reputable and established online wholesalers like DollarDays can offer a huge variety of items, 300,000+ items from cleaning supplies to clothes and efficient shipping that matches any current supplier. With the holiday shopping season approaching, the opportunities for increased savings and profits are even greater. Online sales are expected to increase by at least nine percent. 

The most important benefit to buying through online wholesale sites is that it saves costs. Online wholesale suppliers typically have lower operating costs, as they don’t have to operate a brick and mortar store and can design their entire supply system around efficiency in storage and delivery. Online retailers can also more easily develop large inventories, as their storage and delivery systems are designed for cost efficiency to begin with and can be more readily expanded. The phenomenon is well known to any of us who use Amazon or other online retailers for our shopping. It’s often cheaper to buy a product online and have it shipped than it is to visit local retail stores.

Staying Competitive

Larger retail businesses already take advantage of the efficiencies in the modern ecommerce world. Now it’s time for SMBs to do the same to compete in the marketplace and keep costs as low as possible. In fact, the entire business community profits from online wholesaling that targets the smaller buyer. Cost savings can be realized by nonprofit organizations, schools, civic organizations, churches, and even individuals.

Small business owners also need reliable and predictable supply chains. Online wholesale businesses are responsive and reliable partners that provide the small business owner the goods they need without concerns over product availability. 

Online wholesaling has the advantage of both a simplified structure and the most modern and responsive inventory control systems.  With increasing competition and rapid changes in the market, the reliability and reputation of an online wholesaling business matters a great deal – particularly to the small business owner who may not be able to maintain a large reserve of inventory.

Assess Business Needs

When considering online wholesalers, SMBs shop around for the wholesaler that best fits their business needs. Wholesalers have different strengths and weaknesses with respect to different types of companies. As the industry changes, its ability to serve your needs can change quickly, often improving as they sense the demand in the marketplace. One way to start researching a wholesaler that fits your needs is to look at trade publications.

Industry experts also suggest finding local wholesalers, as this may allow you to save on shipping costs by picking items up yourself. In this day and age, suppliers can be located nearly anywhere – even overseas – but for the small business owner, reducing even the cost of shipping can make a large difference to the bottom line.

Be sure, also, to visit trade shows, where wholesalers make themselves known and you have a chance to shop around and start to develop relationships that help you make your decision more clear. A good relationship with a supplier can lead to special cost-saving arrangements and may help you and suppliers develop product lines that improve your overall business.

Order Sizes and Cost

Consider all the costs and restrictions, not just the per-unit costs. Some wholesalers have minimum order sizes that are beyond the needs of some small businesses. DollarDays has organized its business model specifically to accommodate those smaller businesses that can’t afford to buy at those high minimum levels. Always ask about shipping charges and shipping times as both vary considerably. The overall decision will depend on how well the wholesaler fits a variety of needs, not just cost. Finally, consider drop shippers, who take care of packaging and shipping for you, allowing you to focus more on getting customers and less on managing the logistics of packaging and shipping.