What is a wholesale business and how to start one?

Wholesale. A concept that can be quite different from regular retail. Wholesale refers to selling goods in large quantities at a low price. A wholesaler is, therefore, an individual or company that facilitates the sale of products in large or bulk quantities. A wholesaler sells to various retailers and outlets. Retailers can then sell the products to consumers in their brick-and-mortar or e-commerce shops.

Wholesale business involves selling products in large quantities, and at a cheaper price. Ultimately, this reduces costs and processing time.

There are different types of wholesale businesses. A wholesale business can take the form of a commercial wholesaler, broker, or sales and distribution. Wherever you belong, you can be a go-to wholesaler by getting a foothold in the industry with your offerings. Ecwid’s e-commerce solutions will help achieve this – both for competitive advantage and guaranteed profit. We offer a solid and reliable eCommerce platform for an incredible customer experience.

Read on to learn more about what wholesale is, the benefits, and how you can make the most of the domain.

Wholesale versus retail
Wholesale or trade focuses on selling goods to institutions, businesses, and governments. This is in contrast to a retail business, where buyers and individuals are involved in selling products. liquidation pallets UK

In wholesale business, there are two possible models. First, a company may choose to buy goods in large quantities from manufacturers, store them, and later resell them. In the second model, wholesale business can be a situation where you – as a business owner – produce your products and goods, and sell them to retailers who later sell to the end consumer. The second model has been prominently adopted by many wholesale marketplaces.

According to Investopedia, wholesale reflects the consumption situation of the economy when wholesalers rely significantly on supplying products or goods in large quantities to retailers.

Wholesale distribution of goods
You may be wondering: how are goods distributed in wholesale? If you are a wholesaler or an intending trader, then wholesaling is quite simple. Wholesalers buy goods from a company or distributor and sell them to a retailer and to the end consumer. Suppliers of wholesale goods are responsible for sourcing trendy products in order to provide the latest, up-to-date goods and products to individuals.

When identifying a trend, wholesalers look for the products with the highest cost efficiency, selecting from a flood of options from manufacturers and distributors, and finally, supplying the products to individuals or businesses.

Why wholesale?
There are several advantages associated with the wholesale business. And these should be enough to convince you to look into it.

Opportunity to save money
When you buy products in bulk, you can save money through discounts given by manufacturers on large orders. This means that you can get products at lower prices and sell them at higher prices. You will also be one step ahead with a significant competitive advantage made possible by the large volume of buying and selling. This would, however, depend on your initial capital.

Ability to build an enormous network of suppliers
Wholesalers need a viable, active, and reliable network of manufacturers and suppliers. The reason for this is that you cannot afford to slack off in terms of delivering on time, offering quality products, and honouring relationships. Without exception, these seemingly trivial things will add up to ensure that your business runs smoothly. So, supplier relationships need to be positive, and is not to be taken for granted. It should also be sustainable.

You can become an expert
By researching, selling products, and doing it over and over again, you have the chance to become an expert in that niche. Regardless of what products you sell, wholesaling grants you the privilege of gaining extensive knowledge about your industry and its operations. Use this knowledge to attract more people to your wholesale online shop and reveal information that will motivate customers to buy.

Easy expansion
Until you have your feet planted in the sand of time in your industry, you will automatically begin to connect with other markets. In some cases, these connections could come in the form of upselling opportunities. In others, they could be cross-selling. The idea is that they can strengthen your business to ensure greater success. Meanwhile, This expansion will be effortlessly achievable provided you have a working relationship with the companies that offer the products and goods for wholesale.

Start your wholesale business
A wholesale business is an excellent option if you don’t want the gruelling stress of the retail business. The following are tips you should follow that will guarantee real success:

Identify the market
Make sure you do your due diligence and research thoroughly to identify the ideal market that suits your products. Make the effort to find distributors, customers, and shop owners who will buy the products from you.

While you are building your brand, you also need to determine the competition. This aspect is essential as the wholesale business can be fiercely competitive. Make sure you know products, their prices, and the service quality of these companies.

Identify a suitable office location
You also need to identify a suitable location for your business. In cities, space can be scarce and expensive. And you may need to separate your office from your warehouse. Also important, Get someone who can manage your inventory very well.

Identify suppliers
Another essential aspect of the wholesale business is to get in touch with your manufacturers who are willing to have you as a wholesaler. Many companies want you to reach a destination, so you need to think it through before you choose one.

You can contact the manufacturer’s distributors directly if they are not willing to sell to you. In this case, There will be a way to calculate the profit.

Setting up your website
You have to set up your website if you want to be a successful wholesaler. However, This has become incredibly easy with the introduction of e-commerce solutions and IT related tools. You can also set it up with WordPress. Therefore, it will create a way to let distributors and businesses know that you are ready to do business.

Also, they will be able to contact you easily. And, your website will consequently attract distributors who are interested in your products.


Determine and confirm the manufacturer’s return policy and how they intend to handle goods returned to them due to defects or for whatever reason. Make sure you do this before you proceed and finalise your choice of manufacturer. The reason for this is that you should stay away from manufacturers who are not responsive. Otherwise, you could end up with too much inventory that you can’t sell.
Get an easy and user-friendly inventory software that allows you to check and track your products in different warehouses. Also, This will enable you to have a proper delivery schedule for customers and, as a consequence, help you earn better.
If you find that you are manufacturing your goods and products in bulk, and later selling them to retail buyers (who then sell your goods to individual actual consumers), you, my friend, are in the wholesale business. And it is a very lucrative business if you know how to use it to your advantage. To maximise profit, you need to master the marketplace, how it works, and how you can thrive in it. This is where the idea of e-commerce comes in. And for all your e-commerce needs, especially at wholesale level, We believe Ecwid is an ideal platform for guaranteed success. Happy selling!

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