By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

What is wholesale? Examples of wholesalers

12/8/2022

What is wholesale?

Wholesale trade, also called wholesale, business-to-business or trading, includes all businesses (VSEs, SMEs or large groups) engaging in a commercial intermediary activity (purchase and/or sale) of products, exclusively in B2B. These companies, wholesalers or distributors, are positioning themselves between the manufacturer and the retailer or reseller within the supply chain (or supply chain). In addition, wholesale trade consists of buying goods in large quantities, hence the term “wholesale”, and is opposed to retail.

An example of a wholesale business: a distributor of a sports brand in France buys from the brand and resells the items to specialized sports stores and sports clubs, guaranteeing competitive prices and efficient delivery. These wholesalers offer a wide range of products, including accessories and sporting goods, available for online order for optimized stock management and timely deliveries to quickly meet customer needs.

Difference between wholesale and retail

The main distinction between wholesale and retail is their approach and target audience. While wholesale focuses on selling products in large quantities to businesses, retail is aimed directly at the end consumer, offering items individually or in small quantities. The wholesaler, acting as a crucial intermediary in the supply chain, buys inventory in volume from manufacturers or suppliers and then resells them to retailers or resellers, often guaranteeing advantageous prices thanks to the economies of scale achieved.

On the other hand, retail specializes in direct sales to individual consumers, offering personalized shopping experiences, specific product advice, and dedicated customer service. Retailers play a vital role in making products accessible to the general public, presenting them attractively in physical stores or online, and adjusting prices, promotions, and delivery terms to meet consumer expectations.

What is a wholesaler?

A wholesaler is a player in wholesale sales: he is the intermediary professional who buys goods from suppliers (whether manufacturers or other wholesalers), Stores it and then resells it to retailers. A wholesaler also operates exclusively in B2B, since it resells its products to distribution professionals, and not to individual consumers. In addition to offering competitive prices, it must guarantee product quality and ensure efficient delivery to meet the needs of retailers.

For example, in the food industry, one of the highlights of the wholesale trade is the Rungis Market, the second largest food market in the world, which brings together numerous wholesalers. These professionals offer a wide range of food products, from fresh produce to specialized accessories and items for the restaurant industry, available for online ordering or by quotation.

In which sectors does wholesale operate?

The main business sectors are as follows:

  • Food consumer goods : edible goods, finished or intended to be processed;
  • Non-food consumer goods : products purchased from the manufacturer already processed, resold as they are;
  • A lot of interindustrial equipment : all products intended to provide businesses with the equipment necessary for their activity.

Wholesale sectors

The advantages of going through the wholesale trade

The main advantage for a retailer or reseller to go through the wholesale trade is benefit from a grouped, negotiated and attractive price, and therefore be able to obtain a higher margin later on.

Likewise, thanks to the specialization of these companies in the trading and handling of goods, resellers or retailers benefit from an assured guarantee of quality: more regular, more reliable and more efficient deliveries, but also a stricter quality control of products (traceability, health safety, etc.).

The challenges of wholesale trade

For stocks, wholesale involves the obligation to buy in large quantities and therefore a risk that volumes will not flow. Several aspects need to be taken into account:

Wholesale trade in full evolution

Wholesale has a bright future ahead of it, especially thanks to B2B e-commerce platforms : selling online makes it possible to save time for the buyer and the seller, but also to promote your business through more diffuse and responsive communication. In this context, it is important to satisfy this new generation of B2B buyers (wholesalers or professional buyers) by primarily taking care of your commercial site.

In addition, wholesale e-commerce now offers payment facilities, a significant element for its customers.

illustration de la vente en gros

3 examples of online wholesalers

Some retailers are regularly looking for online wholesalers to easily and independently select a range of products to offer in stores. For example, they may use:

Stocketik.com

Specializing in the distribution of eco-responsible products, Stocketik.com is positioned as a major player for companies concerned about the environment. This platform offers a wide range of products ranging from office items to maintenance supplies, all selected for their minimal environmental impact. Stocketik.com facilitates the online ordering process for professionals, ensuring optimal stock management and a positive contribution to the preservation of the environment.

BigBuy

With an approach focused on technology and electronics, BigBuy is proving to be an essential destination for retailers looking for high-tech gadgets, computer components and accessories. This online wholesaler stands out for its competitive offers, its vast catalog of cutting-edge products and its logistics solutions adapted to the urgent needs of businesses. BigBuy meets the growing demand for technological products with efficiency and expertise, thus guaranteeing satisfaction and loyalty among its professional customers.

Ventegros.fr

Recognized for its diversity of products and its general approach, Ventegros.fr serves a wide range of sectors, including fashion, home decor, toys and much more. This platform is particularly appreciated for its ability to offer advantageous wholesale prices, allowing retailers of all sizes to access quality products at competitive conditions. With features such as simplified online ordering, personalized quotes and responsive customer service, Ventegros.fr is a partner of choice for professionals looking for flexibility and diversity in their supplies.

These 3 wholesalers offer a variety of products with self-service access to order. As a wholesaler, you can also offer your online store to retailers thanks to the Erplain B2B Store. This e-commerce platform dedicated to wholesalers allows you to present your product catalog, reseller rates and purchase minimums. Retailers can also place orders.

In bulk

Wholesale is a promising business, regardless of the sector. A wholesaler knows its products better and knows how to target the needs of its professional customers.. He knows how to communicate, advise and train, which contributes to the development of the growth of his clientele. Wholesalers also benefit from good logistical control in terms of the delivery and delivery of goods on time, an essential guarantee for client companies. Essential levers, they use numerous innovative solutions concerning market expectations, such as the digitalization of activities (commercial sites, mobile applications, social networks, etc.). One digital visibility which allows wholesalers to source, promote their business, follow trends, prospect, retain customers, etc.

Note:

Do not confuse wholesale with Dropshipping : this last method consists in doing the direct link between customer and supplier. The company that sells by dropshipping generates the orders and sends them directly to the supplier who is in charge of sending the order to the customers. The major advantage of this method is that it avoids the storage, packaging and shipping of goods. Dropshipping is therefore completely complementary to wholesale trade.

Frequently asked questions about wholesale

Can an individual buy from a wholesaler?

Traditionally, wholesalers deal with distribution professionals, selling products and items in batches or in large quantities. However, some online wholesalers may offer the possibility of wholesale purchases to individuals, in particular for sporting goods, clothing for women and men, or various accessories. It is often required to order a minimum number of parts to benefit from wholesale prices.

How does the wholesaler calculate its margin?

A wholesaler's margin is calculated based on the cost of buying products from suppliers and the selling price to retailers. This margin should cover operational costs, including delivery, storage, and guarantee profitability. Wholesalers often use quotes to offer competitive prices on specific lots of items, clothing, branded accessories, paramedical equipment, industrial spare parts, etc.

Where do wholesalers get their supplies?

Wholesalers buy directly from manufacturers or via other general or specialized wholesalers. They opt for suppliers who are able to provide them with guaranteed quality products, in line with market demands, whether in clothing, paramedical equipment, accessories or industrial parts. The selection of suppliers is crucial to ensure a competitive offer in terms of price, quality and diversity.

How do I set a wholesale price?

The wholesale price is set taking into account several factors: the cost of buying the products, the costs of operation and delivery, as well as the desired margin. Wholesalers should also consider the target market, the competition, and the perceived value of the items or lots offered. A well-thought-out price strategy makes it possible to attract retailers by offering good value for money on all types of items: clothing, accessories, branded items, industrial parts, paramedical equipment, etc.

Posts similaires

Why Choose Erplain?

Erplain provides small businesses with a reliable solution for long-term management success.
Try for free
check_circle
No credit card required
check_circle
Cancel any time
time icon
Save time, drive efficiency
Collaboration icon
Collaborate with your team
star icon
Improve customer satisfaction
support icon
Get expert assistance from our product team
lock icon
Keep your data safe and secured