Challenges faced by wholesellers who wish to sell online.

By Kim Yoong E-commerce No Comments on Challenges faced by wholesellers who wish to sell online.

The annual sales turnover of majority of wholesale distribution companies is estimated to be nearly seven trillion dollars. The wholesale distributors who are the cornerstones of the economy played a pivotal role in the distribution of goods and services for the past one hundred years. Today, majority of them are facing difficulties in retaining the market share, sustainable profitability and establishing a stable position in the market.

There are retailers who pay minimum amount and procure more money in order to meet the rising demands of both the customers and manufacturers. Owing to the growth of the omni-channel markets, both the retailers and wholesalers are struggling to survive in the global marketplace. The complexity of supply chain market has become intense and a hefty amount is required in order to manage it. The wholesalers are actually caught in the middle of both the retailers and customers due to increase in demand from either side.

The wholesale distribution channel is completely evaded since the manufacturers supply the goods straight to either the consumer or retailer. In the wake of online e-commerce portals, there has been a huge demand for online purchases where the manufacturers deliver majority of them to the customers to save time and mitigate supply chain expenses. Some of the leading retailers such as Home Depot, Wal Mart and Costco have their own warehouses and purchases goods in huge quantities. They do not require wholesalers to act as an intermediary during distribution and supply of goods to the discerning customers. The above-mentioned mega retailers receive a major percentage of market shares from similar retailers ranging from thirty-five to sixty.

The wholesale distributors should incorporate new strategies in order to guarantee a sustainable profitability. They need to convert their organizations through a prudent approach such as executing quick decisions. The entire business environment is traveling at a faster pace. As a result, they need to be well informed and diligent while making prudent decisions.

In order to flourish and prosper in this face-pace business world, the whole sale distributors should take into consideration the below mentioned criteria’s.

  1. Adopt solutions that give you the competitive advantage.
  2. Upgrade the technology to identify the problems and issues.
  3. Ability to cope with challenges raised by Omni-channel marketing and increase in costs along with rising demands of the customers.
  4. Set aside funds for innovative products, improve execution, and maintain sufficient stock for speedy delivery in order to meet the customer requirements resulting in commensurate cost reduction.

Now the whole sale distributors can access some of the information technology solutions such as cloud computing and Software-as-a-Service (SaaS) with ease. Incorporating business management soft wares in a proper manner allows the whole sale distributors to optimize stock and ensure sustainable profitability. The technology solutions enhance the visibility and helps in keeping track of the bottleneck that might occur in the production system.

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