What Is A Wholesale Distributor?
A certified wholesale distributor is a company who handles the wholesale shipments for the manufacturer of a product. In some cases, this also includes the product manufacturer.
As a company owner, one of the most common challenges you’re going to face is finding ways to sell your products. Getting your product into retail stores can have a huge impact on your sales and bottom line. However, by yourself, it can be difficult and costly.
This is where a wholesale distributor can be a huge help.
Why Use A Wholesale Distributor?
You by now know there’s no such thing as a “one size fits all” approach. Your product is unique, your brand is unique, your industry is unique. Here at Thill, we understand this clearly. In the world of wholesale distribution, having a clear idea of how your business sits within its overall supply chain is key to improving your process. From dealing directly with manufacturers and jobbers to exclusivity deals and fixed regional distributors, there are plenty of options on hand for wholesale distribution out there.
Wholesale distributors have warehouses, distribution centers and they ship products directly to retailers. If they do dropshipping, they send these shipments directly to consumers.
Certified wholesale distributors are who you and your retailer want to work with directly. In short, they are the only type of supplier that gives you true wholesale pricing because they are the wholesale supplier.
Some wholesale distributors are associated directly with the manufacturer of the products they warehouse and distribute. The manufacturer knows who they are and ship bulk quantities of the products they create to them. It’s the job of a Wholesale Distributor to “distribute” or ship products to either Retail stores or directly to the customer if they provide dropshipping for the retailer.
Finding wholesale distributors who will dropship can be a challenge. Furthermore, finding distributors who will dropship and work with online sellers is a huge challenge.
While multi-channel selling is growing in popularity and the business model has been proven, many wholesalers are still slow to allow to their products to be sold online, for various reasons.
Benefits Of Using A Wholesale Distributor
There’s a number of great benefits your brand gets by working with a wholesale distributor.
- Sales and marketing experience to help you sell your products
- Large established customer base, both retailers and resellers
- Storage space, reliable transport logistics
- Industry specific experience
- Mass market coverage
- Large distribution channels and networks
- Customer service capabilities
By the same token, working with a wholesale distributor is going to give you more time for your business, allowing you to concentrate on creating products, sourcing products and building relationships.
How To Find A Wholesale Distributor
Finding a wholesale distributor to fit your specific needs can be a challenge.
Some wholesale distributors specialize in specific niches, you may be able to find one that focuses on your key industries.
Let’s use Thill as an example. While there’s several industries we work within, one of our specialty areas is subscription box businesses.
Matching Your Products With The Right Wholesale Distributor
There’s no question, if you want to quickly expand your business and increase sales, you need to hire a wholesale distributor. However, you do want to do your fact checking and research. It’s not important to choose a distributor, it’s important to choose the right wholesale distributor.
When you approach a distributor, there’s going to be a few common questions they will be asking.
- How much profit can we make per product sale?
- How much will it cost to stock and fulfill products?
- Will we be selling multiple products?
- Can these products scale?
Finding a distributor is only the first step, understanding the relationship and expectations is equally important.
When you finally find the right wholesale distributor services, you will be able to look at finding the right software to streamline your business operations. In the same way, inventory and order management software can help you manage your inventory, orders and customers from one centralized location in real-time.
If you want to speak with one of our software experts, feel free to reach out to our team at 1-920-967-9201 or use our contact page.
