In the month of December 2023, Statista reported a wholesale sales figure of over 670 billion U.S. dollars. Take that in, just one month’s sales figure in an industry went over half a trillion dollars. Very few industries can boast such sales figures. Makes you wonder, just who are these wholesale buyers?
We know that wholesalers are the bridge in the supply chain connecting products between manufacturers and retailers. So now let’s dive into the world of wholesale buyers. Let’s find out who exactly they are, what their buying process looks like, and how you can identify wholesale buyers for your business to succeed!
4 Main Types of Wholesale Buyers And Key Priorities For Them
Wholesale buyers have key priorities that you need to be aware about as a wholesaler. Here are the key priorities of wholesale buyers that you should know to make negotiation much easier as a wholesale business:
- Wholesale buyers are highly price-sensitive, seeking the lowest costs to maximize thin profit margins. They favor suppliers with competitive pricing, volume discounts, bulk deals, and favorable payment terms.
- High-quality, consistent products are crucial for wholesale buyers to maintain their reputation and ensure customer satisfaction. Reliable quality fosters repeat business and sets up wholesale success.
- Dependable suppliers who consistently meet demand and deliver on time are essential to wholesale buyers. Reliability minimizes supply chain disruptions and stockouts, making such suppliers highly valued.
- Excellent customer service, including responsive interactions and special request accommodations, builds long-term relationships with wholesale buyers. Dedicated account managers and proactive communication help retain buyers.
- Wholesale buyers prefer partners who can scale production and handle larger orders without compromising quality or delivery times. Demonstrating scalability and flexibility is key to maintaining and growing business relationships.
But who exactly is buying wholesale? There are 4 major buyers for wholesale goods, some who buy more than others. Here is a detailed look into them:
Retailers
Retailers are businesses that purchase products in bulk from wholesalers to later resell individually to consumers. They are also the biggest contributors to wholesale buyers because they require large quantities. A retailer can range from small local shops to large chain stores.
Retail businesses benefit from wholesale purchasing by acquiring products at lower cost per unit, which allows them to maintain competitive retail pricing. They markup the prices when compared to what they bought from wholesalers, which makes up their profit margins.
For example, a supermarket might buy from a food wholesaler. They buy 100 lettuce for $2 each and later sell it individually to their customers for $4.
Characteristics of Retailers:
- Focus on consumer trends and demand
- Require a diverse range of products
- Prioritize timely deliveries to keep shelves stocked
- Often look for long-term partnerships with reliable suppliers
E-commerce Businesses
E-commerce businesses buy products in bulk to stock their online stores. With the rise of online shopping, many e-commerce platforms source goods from wholesalers to offer a wide range of products to consumers. These businesses rely heavily on efficient supply chains to meet consumer demand promptly.
Some e-commerce businesses opt for dropshipping, where the wholesaler directly ships the products to customers. It is one of the ways that wholesalers get to add value to their services.
Characteristics of E-commerce Businesses:
- Operate on tight margins with a focus on volume sales
- Require reliable inventory management systems
- Need fast shipping options to fulfill customer orders quickly
- Utilize online marketing strategies to drive sales
Exporters and Importers
Think of exporters and importers as businesses that trade internationally. An exporter purchase goods in bulk for cross-border transactions and the importer buys it from them. Exporters sell domestically produced goods to foreign markets, while importers bring products from international suppliers into their home market. These businesses navigate complex logistics, regulatory requirements, and cultural differences to operate successfully. But ultimately, these types of businesses are wholesale buyers who buy in very large quantities to ship abroad.
Characteristics of Exporters and Importers:
- Deep understanding of international trade regulations
- Manage complex logistics and shipping arrangements
- Build relationships with foreign suppliers and buyers
- Focus on product quality and compliance with local standards
Other Wholesalers
Wholesalers sometimes have to buy from other wholesalers as well! Some wholesalers might run into supply chain problems which means they will have to look elsewhere for product procurement. That is where another wholesaler dealing with the same type of product is the solution, making up the wholesale buyer list.
The Buying Process of Wholesale Buyers Step-By-Step
To truly understand wholesale buyers, you need to also understand the buying process for wholesale buyers. Since wholesalers are a business-to-business or B2B relationship, the buying process is meticulous and takes a long time. So here is the process for wholesale buyers:
Step#1 Research and Selection
Wholesale buyers start by researching potential suppliers and evaluating their offerings. This involves comparing prices, quality, and service levels. They may seek recommendations, attend trade shows, or use online platforms to identify potential partners.
This might be the first step but it sets up the rest of the process. The more a wholesale buyer researches, the more they understand the market which makes it easier for them to find the right wholesaler to buy from. This is also the step that takes the longest because of how crucial it is for the rest of process.
Step#2 Initial Contact And Negotiation
Once potential suppliers are identified, wholesale buyers initiate the first contact with the wholesaler. This stage is critical for establishing mutually beneficial terms that ensure a long-term partnership.
During the initial contact, the wholesaler and the buyer talk about the product, prices, minimum order quantities, and terms and conditions for purchase. For example, buyers and can ask for what the lead times will be for the product or ask for product samples to test the product out before buying them. These negotiations set up the next step of actually purchasing the products from the wholesalers.
Step#3 Purchasing and Logistics
After negotiations are finalized, wholesale buyers place orders and coordinate logistics. This includes arranging for transportation, warehousing, and distribution of the products. Efficient logistics management ensures that products are delivered on time and in good condition.
One important logistic to figure out here for buyers is the payment plan. Some wholesalers allow for delayed payments up to 90 days. Other wholesalers prefer cash buyers who pay everything up front before shipping the product to the buyer.
Step#4 Post-Sale Services And Feedback
Even after the sale, a wholesaler and their buyer’s relationship is not done. Some wholesalers add value to make money by providing marketing services or inventory management services. Other wholesalers might also be willing to buy up unsold stock from the buyer to foster a stronger relationship.
Building and maintaining a strong relationship with a wholesaler is is an ongoing process. Wholesale buyers expect regular communication, reliable service, and responsiveness to their needs. A good relationship can lead to better terms, priority treatment, and long-term business success.
5 Places Where You Can Find Wholesale Buyers
So far, we have gone over who the typical wholesale buyers are, how these buyers buy from wholesalers and what they are looking for in wholesalers. Now let’s look at where you can find wholesale buyers for your wholesale business:
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Trade Shows and Industry Events
Attending trade shows and industry events is a fantastic way to meet potential wholesale buyers face-to-face. These gatherings are where wholesalers gather to showcase your products, network with key players in your industry, and collect valuable business contacts. And of course, there are wholesaler buyers who regularly attend trade shows to find wholesalers to buy from. When meeting up with the buyers, make sure to leave behind your contact information so they can get back to you.
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Online Marketplaces and Directories
Here, wholesalers are listed and verified by the platform. Being a part of online directories opens you up to all the different buyers. Online marketplaces like Alibaba, Global Sources, and ThomasNet are invaluable resources for finding wholesale buyers.
Listing your products on these platforms can connect you with buyers worldwide. Additionally, exploring directories specific to your industry can help you identify potential buyers actively searching for new suppliers. You can also see and analyze the market so you can stay on top of competition.
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Networking and Referrals
When online directories and B2B portals aren’t enough or not viable for you business, then it is time to go the old fashion way of networking and referrals. Networking a client base and even with other businesses get you referred to potential wholesale buyers looking to buy the product that you sell. Even your existing clients are valuable assets in networking. So be sure to ask satisfied customers and business partners for referrals. Joining industry associations and business groups can also expand your professional circle, opening doors to new opportunities and potential wholesale buyers.
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Online Marketing and SEO
When you have an e-commerce website, then you can leverage the power of online marketing and search engine optimization (SEO). Optimizing your website for search engines with keywords related to wholesale purchasing is vital for attracting buyers. It creates new ways that wholesale buyers can find you.
To do that, you need to create engaging content, such as blog posts and case studies, that addresses the needs and interests of wholesale buyers. Social media platforms like LinkedIn are also powerful tools for connecting with industry professionals and promoting your products.
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Direct Outreach
Sometimes, a direct approach works best. Compile a list of potential wholesale buyers and reach out to them via email or phone. Personalize your communication to highlight how your products meet their specific needs, and consider offering special deals or samples to pique their interest.
7 Tips On Foster Stronger Relationships With Your Wholesale Buyers
While strategic customer acquisition is important for a wholesale business, don’t forget that your business relies on repeat customers. Wholesale buyers are loyal to those they have a familiarity with. So here are some tips you need to build and maintain your wholesale buyers:
Tip#1 Consistent Communication
Communication is key for building a strong B2B relationship. Keep in touch with your buyers through updates, newsletters, and personalized messages. These can also include new products you offer or services that you want to expand on. Regular communication with the buyers helps keep you on their radar and keeps them informed about your ventures.
Tip#2 Provide Exceptional Service
Exceptional customer service can set you apart from competitors. Address any issues promptly and professionally, showing your commitment to supporting their business. Reliable and responsive service builds trust and fosters long-term relationships. With this, you can ensure your buyers remain loyal to your business.
Tip#3 Be Flexible
All clients are unique and might need personalized solutions for their problems. That is where flexibility in your dealings can go a long way. Be willing to negotiate terms and conditions to accommodate the buyer’s needs. Whether it’s adjusting order quantities, delivery schedules, or payment terms, showing flexibility can help strengthen your partnership.
Tip#4 Encourage and Act on Feedback
Always encourage feedback from your wholesale buyers and act on it. Feedbacks are your way to know if you are doing a good job or not. It will also tell you where you can improve even if you are doing a fantastic job. Remember, your buyers are also looking for scalability and you can provide that for your customers if you know where you can improve for them. So listen to their suggestions and concerns, and make necessary adjustments to your products or services. This not only improves your offerings, but also shows buyers that you value their input.
Tip#5 Offer Exclusive Deals
Reward your wholesale buyers with exclusive deals and incentives. Special discounts, early access to new products, or loyalty programs can make them feel valued and appreciated. These perks can also encourage repeat business and long-term loyalty.
Tip#6 Build Personal Relationships
Wholesale buyers are human and building that emotional connection will help you in the long run for both your businesses. Take the time to get to know them, their business, and their challenges. Personal touches like remembering important dates or sending a handwritten thank-you note can be the difference maker in building a long-term partnership.
Tip#7 Stay Informed and Proactive
The industry you are working in will constantly change with technological advances and new techniques to improve efficiency. Stay informed about industry trends and proactively address potential issues. Proactively addressing potential issues shows your dedication to your buyers’ success and your ability to anticipate their needs. Keeping an eye on market changes and innovations that can help you provide solutions to your buyers.
Tip#8 Utilize Apps For Better Shopping Experience
Technology is making the shopping experience more convenient and easier. For example, on Shopify you have the luxury as an e-commerce wholesaler to provide the best possible shopping experience thanks to the Shopify app store.
Since you have wholesale buyers on your online store, you need to make sure bulk orders are as simple as possible. Large bulk order quantities can get very confusing very fast. But with a bulk order app on your online wholesale store, you can give your wholesale buyers an unforgettable shopping experience.
Here is one such bulk order app that can turn wholesale buyers into loyal customers to your business:
You can see the message at the bottom telling customers that they need to add a product to cart. This is the minimum order quantity (MOQ) restriction. With Shopify’s normal options, you cannot apply an MOQ restriction for your products. But this app allows you to have MOQ restrictions on your products with ease. When a wholesale buyer comes to your store, they immediately know what your MOQ is and they can tailor their shopping accordingly. You also have the ‘in-stock’ badge to let customers know if the product is available or not.
This is great for when you have multiple variants for a product. The app showcases all the variants on one page with the MOQ restriction so your customers don’t have to switch between product pages to add the product to cart. But once they have selected all the necessary quantities they want to buy, they can add all variants and their individual quantities to cart with one click, simplifying a bulk order with many variants and quantities.
One app gives your wholesale buyers the MOQ they can intuitively use, bulk orders for products with multiple variants, an easy one click add to cart feature, and a stock badge all from one app on Shopify!
Bottom Line
Overall, there are different types of wholesale buyers who have their own priorities and characteristics. But what they have in common is the purchasing process. Knowing that gives you an advantage of how you can approach wholesale buyers and approach them in places where you are most likely able to land them as a client. But overall, remember wholesale buyers are there for the long term, so you need to maintain a good relationship with them for both your businesses to succeed!
