With new terms evolving every day, the wholesale businesses are now referred to as B2B Wholesale. The ‘B2B wholesale’ stands for business-to-business wholesale.
In earlier times, it wasn’t like that, that there was no wholesale business. But the term B2B was not familiar to many. However, now that the world is moving forward every day and new things are evolving, there have been some acceptable changes in the market.
In this new era of marketing, India is no longer to remain behind. With finding our ways to come forward, the Wholesale Market in India is now standing stabilized and moving upward in the direction of achieving more success for the Indian wholesale seller.
In the following words, let’s have a brief about what is B2B Wholesale? What are the benefits of B2B wholesale? And lastly, the B2B Wholesale in India. Without further ado, let’s enhance our knowledge.
What is B2B Wholesale?
As mentioned above, B2B stands for Business-to-business transactions. A transaction between, either, a manufacturer and a wholesaler, or a wholesaler and a retailer. Irrespective of what goods are being transacted, whether it is grocery, vegetables, textile, handmade goods, electronics, and many other such industries.
As long as the supply is conducted between two companies and the goods are transacted in bulk, the business is referred to as B2B wholesale. Every wholesale seller follows this B2B strategy to grow their business as they deal with multiple manufacturers and then further vendors, dealers, and retailers.
Further, changes in transactions occur when an individual purchases goods from a retailer, wholesaler, or directly from the manufacturer. This particular transaction of lesser quantity is denoted as a B2C transaction. Where B2C stands for Business-to-Customer transactions.
Then there are such authorities that purchase goods directly from the manufacturer for government needs. And those transactions, whether in bulk or in less quantity, it is referred to as B2G transaction. The B2G transaction is called a Business-to-government transaction.
The B2B wholesale is majorly helpful for the transaction between a manufacturer and a wholesaler. This is so because both a manufacturer and a wholesaler can store the stock in bulk in their warehouses. Whereas this transaction of the bulk item is not possible in a wholesaler to retailer transaction and neither does it be seen in retailer to an individual transaction.
Now as we have understood about B2B Wholesale, let’s move forward in knowing the benefits of B2B Wholesale:
What are the Benefits for B2B Wholesale?
- Easy Stock Management: The very first point in the list of benefits for B2B Wholesale is easy to stock management. As the manufacturer and wholesale seller can store large stocks in their warehouses. It becomes easier for them to keep the number of count for further distributions to vendors, distributors, and retailers.
- Low Average Order Price: Next in line is the low average order price. As the wholesaler purchases goods in bulk from the manufacturer. They pay lower rates from the mentioned MRP, for the same item which an individual customer pays the rates of mentioned MRP.
- Low Repeating Order Ratio: Being able to store the stocks, helps the wholesalers to have a lower repeating ratio of purchasing goods and stuff again and again from the manufacturers. And as per the further sales, they keep an eye on further purchases that need to happen, whether next month or after a couple of months.
- Control Over Supply: As the method of lower repeating order ratio helps, in case of increasing average order value, or as per the sales record. The manufacturer keeps the stock of every brand’s goods. And as the wholesaler has the inventory knowledge too, they know what to purchase when and in what quantity.
- Enhances Brand Visibility: As a wholesaler deals with multiple people such as manufacturers, vendors, dealers, and further retailers. This helps in increasing their reach on local levels as well as interstates. This further leads every wholesale seller to build their brand value. The longer the reach, the more is there to earn.
B2B Wholesale in India:
With having a great hold in the offline market, the wholesale sellers in India are growing further with the help of technology. This step of theirs has not bound them, but actually has created them a platform for the larger reach of the national level.
In this era of digitization, brands have taken their business online. And with the help of multiple online websites and applications, the goods and services are available directly to individual customers with great deals at home in just a few clicks.
Some Such Digital Platforms Are:
- Amazon Business
With many more such websites and applications available in just a few clicks. This digitization has helped every single individual to grow on a national and global level.
(CONCLUSION:) The B2B Wholesale marketing is growing with every step and so as the technologies. Providing the supplies to the demands of customers is what B2B wholesalers do, whether online or offline.