Do you run an online retail business with WooCommerce? Are you looking for ways to increase your monthly revenue? If your answer to both questions is a resounding, “Yes!” then you may want to consider adding a wholesale component to your e-commerce store.
Wholesale trading can bring a range of great benefits to your company, including increasing revenue and reaching new markets. And the good thing is, it won’t take you long to figure the whole thing out. On top of that, our Wholesale Suite of WooCommerce expansions simplifies the implementation of wholesale features, easing you into the transition and ensuring the growth and success of your new venture in no time.
In this article, we’ll explore the benefits of adding wholesale to your e-commerce store to help you determine if it’s the right move for you. In addition, we’ll provide some tips on how to make it work for your enterprise.
9 Reasons To Add Wholesale To Your Online Retail Business
Adding wholesale to your e-commerce store can be the right move for your online retail business.
This is because wholesaling can:
1. Increase average order size
Increasing the average order size is a key goal for any growing online retail business. After all, selling more items in bulk means better profitability and more efficient use of your resources.
Because wholesale customers generally make larger orders, adding a wholesale component to your site can quickly increase your average order size metric. True, you’ll be selling items at a slightly discounted rate. However, the sheer volume of bulk sales will make up for any losses you incur.
One effective way to increase the average order size is to offer bundle deals. Bundling complementary products together is a proven technique to increase the perceived value of a purchase, leading to higher sales. By offering such deals to your wholesale customers, you can incentivize them to purchase greater volumes of products, thereby helping you achieve your revenue goals.
2. Encourage repeat orders
One of the greatest benefits of having wholesale customers is that they are more likely to become repeat customers. Here’s the thing: happy wholesale customers tend to reorder time and again, which means that they can provide the consistent and predictable income that your online retail business needs to grow.
There are several techniques you can use to increase your repeat orders, such as:
- Helping your wholesale customers improve their sales by giving them many resources, such as sales guides and promotional gear
- Providing incentives for additional orders, such as bumping them up to the next wholesale tier that will grant them even better discounts
- Running wholesale-only, time-sensitive promotions to encourage your customers to order as quickly as possible
Another way to encourage repeat orders is to establish a loyalty program. By offering rewards for repeat purchases, you can incentivize customers to continue buying from you, thus allowing you to build long-term relationships with them.
3. Increase brand awareness
Wholesaling can help you increase brand awareness, which is always great for business.
So how does this happen? Simple! When you sell to wholesale customers, they then sell your products to other businesses. As a result, said wholesale customers end up promoting your brand for you, thus increasing awareness of your products.
This increased awareness, in turn, can encourage more people to buy your items. As a result, you can end up enjoying enhanced sales and growth for your online retail business.
Which brings us to our next point…
4. Expand your existing reach
Having wholesale customers can benefit your online retail store in two major ways:
- As previously mentioned, wholesale customers can spread your brand to prospects. This is especially relevant if you have your own branded products.
- By tapping into other companies’ existing audiences, you can sell to customers that would otherwise be out of reach. This can be an extremely effective way to expand your customer base and boost your revenue.
To enhance your chances of reaching new markets and expanding your sales reach, make sure that your wholesale customers are aligned with your brand message and values. This means choosing partners that share your vision and have a similar target audience.
5. Diversify your customer base
In relation to the previous point, one of the benefits of wholesaling is that it can help you to diversify your customer base. In other words, it can give you opportunities to gain customers you won’t be able to reach as an online retail business only.
This can help you reduce your reliance on a single customer group or market segment. Furthermore, it opens up new opportunities for growth and expansion, as you can tap into new markets and industries that you may not have considered before.
6. Streamline your processes
Implementing a wholesale component to your online retail business can help streamline your processes and improve efficiency. By automating tasks such as invoicing, shipping, and order fulfillment, you can save time and reduce the risk of errors.
One of the best ways to achieve this is by choosing the right wholesale plugins for your online store. The right tool will automate many of the manual tasks involved in processing wholesale orders, such as generating invoices, shipping labels, and packing slips. This can help you save time and reduce the risk of errors, making your enterprise more efficient and profitable.
7. Improve inventory management
Wholesaling can help you improve your inventory management. After all, selling items in bulk requires you to adopt new and effective ways to handle your inventory levels, thereby reducing the risk of overstocking or understocking.
Additionally, you can use wholesale orders to forecast demand and adjust your inventory levels as appropriate. This can help you optimize your inventory and reduce costs associated with excess inventory.
8. Build strong relationships
Adding a wholesale component to your online retail business can help you cultivate robust relationships with your customers. By working closely with your wholesale partners, you can learn more about their unique preferences and requirements, allowing you to tailor your products and services accordingly.
This can help you develop loyalty and trust with your wholesale customers, leading to long-term relationships and repeat business. By investing in these relationships, you can build a strong foundation for your company and increase your chances of success.
9. Reduce marketing costs
Wholesaling can help you cut down on marketing costs. Since your wholesale customers are essentially promoting your brand for you, you can reduce your own marketing efforts and expenses.
This can be of particular help to any small online retail business with a limited marketing budget. By taking advantage of your wholesale customers’ promotional efforts, you can reach a boarder audience without spending an inordinate amount of money.
Is Wholesaling Right For You?
Introducing a wholesale component to your e-commerce enterprise can determinine its growth trajectory. However, before diving in, you should ask yourself crucial questions such as, “Is wholeslaing right for my business structure? Does it align with the company goals?”
To answer these questions, assess if your online retail business is equipped to handle the demands of wholesaling. You may need to make adjustments to your production, inventory management, and shipping processes. In addition, you’ll probably have to ensure that your pricing structure and profit margins can accommodate the discounts typically associated with wholesale transactions.
Moreover, you must consider the potential impact on your existing customer base. For one thing, you should ensure that your wholesale pricing strategy doesn’t negatively affect your retail customers. Also, you may need to adjust your retail pricing, offer exclusive products, or create separate marketing campaigns for wholesale and retail customers.
While wholesaling can be a valuable addition to your e-commerce store, it’s not the right fit for every business. Thus, before making a decision, it’s important to weigh its potential benefits against the required changes and possible drawbacks. If you do decide to pursue wholesaling, be sure to do your research, plan thoroughly, and be prepared to adapt as needed.
Adding a wholesale component to your online retail business can be a powerful way to ensure your business’ growth and success.
To recap, wholesaling can:
- Increase average order size
- Encourage repeat orders
- Increase brand awareness
- Expand your existing reach
- Diversify your customer base
- Streamline your processes
- Improve inventory management
- Build strong relationships
- Reduce marketing costs
Do you have questions about the benefits of adding wholesale to your online retail business? Please don’t hesitate to reach out to us in the comments section below!