B2B wholesale is a strong driver for global business development. The US wholesale industry, which only consists of 750,000 companies, generated 8.3 trillion in annual revenue in 2018, with an expected 1.9% rise from 2018-2023. It is clear that running a profitable B2B wholesale company can be lucrative for entrepreneurs. You are likely already active in the wholesale market. Now is the time to innovate and increase your enterprise’s revenue. The opportunities for growth are too great to miss if you’re not already in the wholesale platform.

This post will explain exactly what, why and how this trillion-dollar opportunity is. We also offer some helpful tips to help you choose a high-performing, lead-generating B2B wholesale marketplace from hundreds. Now, let’s checkout!

What is B2B wholesale?

B2B wholesale, which is generally a subset of the larger B2B business. It’s a type of commercial online transaction between two firms.

Business to business B2B wholesalers sell products in bulk to companies, but only one-off items to others. The purchasing company uses the products in such a supply chain either for their own consumption, production, or to resell them in smaller quantities to customers.

The definition is clear for now. However, it’s one term you should ignore. The term “big-box retail” is often used in relation to wholesale B2B. We have all heard it. This is a wholesale business that purchases large quantities of products through ongoing relationships and sells to enterprise chains like Target and Walmart. There are many ways to categorize wholesaling, but the Census of Wholesale Trade uses the most common categories. These are the three types of wholesaling:

Manufacturer Wholesaling

Wholesale manufacturers are used primarily to distribute the manufacturer’s product at wholesale.

Wholesaling for Merchants

This company primarily deals in the purchase, sorting, and processing of large quantities of products, then reselling smaller quantities to retailers. They are known by many names, including wholesaler, jobbers, distributors, supply houses, and so on.

Agents and brokers

Independent middlemen, agents and brokers, are intermediaries who act on behalf of clients and actively participate in the negotiatory functions for buying and selling. They are known as manufacturers’ agents, commission merchants and brokers.

Benefits of wholesale B2B

Increase AOV and Order Volume

B2B wholesale industries can transfer large quantities of products using long-term deal arrangements. This allows them to gain higher average order value (AOV) as well as order volumes over time. A custom-life value is also extended due to the nature of a long-standing contract.

Brand awareness can be increased

B2B wholesale’s core function is to sell products in bulk directly to retailers, without any intermediaries. You can build brand awareness with new clients by selling your products to retailers partners who then resell the items to their customers. If your bran visibility is high, you will be able to develop more opportunities.

A fixed margin of profit should be maintained

Wholesalers can also benefit from wholesaling between companies by earning a fixed margin of profits, usually around 3-10%. Wholesalers don’t have to worry about profit margin because they can easily evaluate the amount of profit from selling a certain amount of goods to retailers.

Increase control of oversupply

Wholesalers are a driver in the supply chain who can manage supply and demand fluctuations between retailer and manufacturer. Manufacturers need to sell goods to be able to make enough working capital. Sometimes, retailers are unable to buy large quantities of goods because they lack the funds. Wholesalers are the ones who bridge the gap between producers and retailers. B2B retailers also rely heavily upon wholesale suppliers for production, reselling, as well as consumption.

What’s the biggest challenge for wholesale B2B?

Technology transformation

The Internet has had a significant impact on B2B wholesale, making it more affordable and creating a risk for inefficient wholesalers. Manufacturers and retailers are expected to reduce the number of middlemen involved in distribution by using the internet. B2B wholesalers who fail to use Electronic Commerce will be unable to enjoy the benefits of this technology.

Global competition

Internet exploration and international competition adds to the downward pressure on prices. This can also hurt low margin wholesalers. Wholesalers will likely recover sales lost and increase sales if they can expand into new markets while controlling costs.

Retail consolidation

The number of wholesalers that supply supermarkets, do-it yourself supplies, and home electronics has declined due to the rise of national retailers. Two types of wholesalers are most likely to survive the changes: those who will continue growing and serving a wide client base; and those that will concentrate on niche markets and excel within those niches.

These are the essential features of a B2B wholesale platform

You will likely face such problems when you start a B2B wholesale company on eCommerce. Although there are many platforms to choose from, it is important to know the essential functions that a B2B site should have.

It’s easy to use

Usability is a key feature that a B2B platform should have. It can be difficult for admins to manage websites’ operations due to the complex nature of B2B transactions. It is crucial to deliver these functions without making it difficult to use, especially when updating customer information such as email, phone tax, and status quotes.

B2B functionality

A B2B platform should have B2B eCommerce features that target B2B buyers, such as bulk order pricing, past orders duplicating, inventory availability and account management.

Mobile compatibility

B2B decision makers are increasingly using mobile devices to find solutions and conduct business online. You will lose many business opportunities if you don’t provide customers with a seamless mobile experience. Your wholesale B2B website should be responsive and performant on mobile devices.

Marketing functionality

B2B wholesalers must invest time and research before they make a purchase decision. The rich information you provide about your solution or products will help them in their buying journey. This powerful tool can also help to make your website stand out in Search Engines. This will increase brand visibility and boost sales. You have many options to display on the content page. These include blog posts, case studies, industry articles and white papers.

Integration of third-party modules

A website for B2B wholesale websites must include third party modules. This is necessary to manage all customer touchpoints. We need your B2B website, but also advanced features like integration with other platforms and tools. These add-on features ensure that customers are happy by transferring their pre-sales and post-sales experiences.

Top 5 Ecommerce Platforms For B2B Wholesale

Shopify Plus

Shopify Plus, one of the most popular eCommerce platforms for wholesale, powers over a million online stores around the globe. This platform has many advantages, including L’Oreal and Motorola.

• You can manage multiple online shops from one backend 
• Selling abroad? Separate stores
• You can handle up to 8,000 orders every minute
• In the merchant dashboard, include 20 sales channels
• Secure SSL Certificate for Shopfront and Checkout

OpenCart B2B Marketplace

This platform is open-source and provides a complete solution for B2B transactions. The free version includes upgrades such as extensions and add-ons that require technical knowledge. It is worth it, despite the low price.

BigCommerce

BigCommerce offers a variety of eCommerce tools that are out-of-the box for B2B businesses. Users can contact clients through multiple social media channels with this platform. BigCommerce integrates with the most popular eCommerce software to make it the best platform for dropshipping.

Additional features

• Beautiful websites with responsive design
• Offering payment solutions to the B2B segment
• Bulk discounts automatically applied
• Pricing and features that are custom made

WooCommerce

The platform offers a variety of design options and add-ons to help you optimize your B2B wholesale site as well as hosting and maintenance. These are some of the most popular features for B2B online shops.

• Layout adaptable for wholesale
• WooCommerce is used for B2B product selection and order creation
• High security of confidential data

Recommend: Magento vs WooCommerce

Magento

Magento is a robust platform that helps B2B wholesalers reach their business goals. Forrester Wave ranked Magento among the top B2B eCommerce platforms. Magento is a great choice for businesses. Take a look at the more than 100 features available for wholesales.

• Native B2B functionality extensive
• Robust merchandising
• Integration with backend systems is simple
• Cloud-based commerce that works reliably
• Multi-Channel Sales
• Personalized purchasing experience

Final thoughts

B2B wholesale is a small market share but the long-term value it provides is significant. Although it seems difficult to start a business in this area, there is plenty of potential for growth. We hope you find our post helpful and informative.

We appreciate your time reading this article. If you have any questions, we would love to hear from you.