The expansion of the wholesale or distribution sector has accompanied the growth of the e-commerce industry. In the final quarter of the 2021 calendar year, US wholesalers’ monthly sales totaled $634.62 billion, according to Statista. This is a 21.8% increase over the end of 2020.
Furthermore, US wholesalers have already sold goods worth a total of $8 trillion. Along with this remarkable development, wholesalers have been turning to B2B marketplaces in recent years in search of longer-term growth and higher returns.
We shall learn how the B2B marketplace helps the wholesale industry in this post. We’ll also assess whether B2B wholesale websites are actually worth the investment.
Overview of wholesale business: Pillars and workflow
Understanding the fundamentals of the wholesale business is crucial before delving into B2B and how it affects wholesale. So let’s begin by defining “wholesaling.”
Buying products at a discount from manufacturers and reselling them to retailers for a profit is known as wholesaling. You could now wonder, “What about the customers?”
The truth is that wholesalers don’t always sell to consumers. Instead, they typically sell to stores where consumers can buy the goods. The two most important pillars in this structure are manufacturers and retailers because they serve as the suppliers and the customers of wholesalers, respectively.
The launch of the Magento B2B market
Since wholesalers sell their goods to retail business owners rather than consumers, the wholesaling model is reasonably comparable to the B2B model. B2B functions exactly in this way.
In other words, B2B marketplaces are similar to the carefully controlled market that wholesale business organizations use to locate retailers for their goods.
As a result, some reports state:
- Nearly 5% of the budgets of B2B enterprises are set aside for marketing.
- The B2B e-commerce industry is anticipated to expand by 20.9% by 2027.
- LinkedIn generates 4 out of 5 B2B social media leads.
- After reading a brand’s content, 52% of B2B buyers are more likely to purchase from them.
Magento B2B marketplace features
A B2B marketplace platform, such as thetradebuzz.com, can currently be hosted on a variety of platforms. But among retailers, Magento has gained popularity among wholesale merchants. Let’s dig into some of its specific features:
Magento-based B2B wholesale marketplace solutions are dynamic and mobile-friendly. This marketplace platform was thoughtfully created to meet the various needs of the purchasers.
Additionally, it enables the company to design personalized blocks for various items via the “My Account” page. Since it makes it simpler for retailers to find products, it’s a great choice for wholesalers. As a result, customers may readily obtain what they require, which improves the user experience.
Reports and dashboards are provided with a B2B wholesale website built on Magento to monitor overall company performance. Because Magento supports Google Analytics, the reports are perfect. The reports in the Magento enterprise edition can be seen in more depth as follows:
- Report of an abandoned cart
- Best-selling products list
- Use of coupons report
- Report on low stock levels
- Report on product reviews
- Sales data
- Report on search phrases
B2B solutions provide hassle-free inventory management to address overstocking and understocking problems. B2B marketplaces also provide real-time integration, which helps to rapidly update the stocks and prices.
The management of A-Z on B2B wholesale marketplaces is made incredibly simple by this functionality. They can also pick with ease how many things will be delivered and how much commission they will receive.
Platforms for B2B wholesale transactions offer real-time order tracking. Any order fulfillment, warehouse update, or real-time update from logistics can all be followed up on B2B markets very easily.
With quicker order fulfillment and smarter shipment tracking, wholesalers may avoid needless delivery delays. This gives the wholesalers a comprehensive image of the market, which helps them deal with changes in supply and demand.
Customers are segmented
B2B marketplaces give vendors the option to build up various client sets. So, a certain consumer group can see a distinct product catalog and pricing.
The number of buyers is always growing in B2B wholesale marketplaces, and various buyers have different kinds of product requirements. Therefore, wholesalers may guarantee a positive shopping experience for the shops by separating customers. The wholesalers make a respectable profit as a result.
Price segmentation comes after the customer and product segmentation in B2B wholesale marketplace systems. Therefore, wholesalers can give retailers enticing discounts and promotions in exchange for large purchases.
Discounts have always been a crucial component of any business, and in B2B wholesale marketplaces, they aid in achieving more retailer reach with less work and resulting in higher sales.