Thursday, August 16, 2012

Defining A Good Wholesaler

Often, it I said that in online retail, a good wholesaler is a strategic asset. Most of the times, it does not make any sense to many people. To them it looks like that they can log on to the internet anytime and in a matter of minutes, they can find all the wholesalers that they need. So, why is it that something that is so readily available is hyped as being one of the key factors for success in this business? Well, the answer is simple as well. Finding a wholesaler may be easy but finding a good wholesaler is not. To understand more read on.

Difference between a Good Wholesaler and a Not So Good Wholesaler:

As retailers, we are very clear about our expectations from a wholesaler. More than 90% of retailers would be more than happy to give their business to someone who provides them these facilities:

• Lower Costs: Every retailer must sell products below MRP to be successful. Therefore, they are always looking to cut costs. If a wholesale UK partner enables them to procure products at 5% less prices, they will be very interested.

• Seamless Delivery: Although Gen Y is much more socially networked than any of their predecessors, they are skeptical when it comes to buying online. This is why reputation is said to be an online retailer’s biggest asset. Hence, if a wholesaler has a track record of delivering goods consistently on or before the promised time, they are in business.

• Wider Array of Products: This is real simple. Customers want more choice at a lower price from the retailer. It is therefore not surprising that retailers have the same expectations from their eBay suppliers.
• Credit: This needs no explanation! All retailers would love a cash positive cycle.

So, a good wholesaler is one who can successfully provide these to the retailers. However, according to many critics, this is impossible.

What The Critics Have To Say:
Critics say that cutting costs just by deploying a wholesaler is a utopian concept. This is because it is just transfer of costs and not elimination of costs. In plain English, this means that even though you are not incurring the costs yourself, someone else is! Consequently, they will add it in their bill. Only location cost advantages can provide any sort of monetary benefit. However, they too will be eaten up by the increasing prices of transporting goods and also by the increasing competition.

The Bottom Line:
Good wholesalers do exist in the world. Although this is transfer of costs, what the critics are forgetting is that there is at least no duplication of costs. This means the customer does not pay for moving goods to and fro between the retailer and wholesaler. Aside from what the critics say, the above definition should give you a good checklist of what to look for in a good wholesaler.


For more information on finding a good wholesaler and extracting maximum value from them, visit www.wholesaledeals.co.uk. There are exhaustive directories of eBay suppliers and wholesale UK partners available free of cost!