Starting an e-commerce business in 2024 is a dream that many aspire to achieve. The freedom of being your own boss is exhilarating, especially if you possess that entrepreneurial spirit.
However, establishing a business from scratch is no small feat. It requires dedication, resilience, and a clear vision. If your determination is unwavering, then there’s no turning back.
Did you know that over 4.4 million new businesses were created in 2020, marking a remarkable 24.3% increase from 2019? This is a groundbreaking record!
Moreover, a report indicates that global retail e-commerce sales are projected to reach an estimated $5.8 trillion in 2023, with a staggering 39% growth expected.
This data shows that sales could surpass $8 trillion by 2027, reflecting the growth in e-commerce and presenting a compelling opportunity for entrepreneurs looking to start an e-commerce business.
So, what does it take to start a wholesale eCommerce business with Shopify in 2024?
It takes a lot of determination, discipline, willpower and Shopify. With Shopify, you can set up your wholesale business model quickly and with minimal effort.
This blog will discuss how you can start your online wholesale business with Shopify, its benefits, and how you can establish one.
Wholesale Ecommerce Business In A Nutshell
Wholesale e-commerce is a business model in which products are sold in bulk at discounted prices primarily to retailers, businesses, or other resellers rather than directly to consumers.
The retailers then sell them to end consumers at a markup. However, this approach focuses on B2B transactions, which allow entrepreneurs to establish strong relationships with manufacturers or distributors to ensure product quality & availability.
So, what Shopify can do for you?
Recently, the wholesale business model has changed drastically. Thanks to e-commerce platforms like Shopify, these platforms have changed what’s possible for small wholesale businesses, giving them access to a global audience.
Moreover, these platforms can efficiently manage inventory and pricing strategies that reflect bulk discounts while maintaining profitability.
If you have a wholesale business and plan to make it online, don’t look out for platforms other than Shopify. Because this platform provides built-in features that help you sell B2B and DTC from a single platform without the need for third-party apps or coding.
Let’s move on to the next section and understand the benefits of starting your wholesale e-commerce business with Shopify.
Benefits Of Starting A Wholesale E-commerce Business With Shopify
Many wholesalers still prefer traditional ways of doing business because there is a lot of information out there on how to start a wholesale business without getting wrinkled.
A Gartner report shows that 70% of B2B buyers are ordering from Digital commerce systems, indicating a growing trend towards digital transactions in the wholesale sector.
However, there are various benefits to starting wholesale eCommerce with Shopify; take a look.
1. User-friendly Platform with Scalability
Shopify is famous for its intuitive interface, which makes it easy to set up and manage a wholesale store, even for those without technical skills.
Moreover, as your wholesale business grows, shopify can scale with you, offering additional features and resources to accommodate increased sales and traffic.
2. Customizable solutions & optimization
This platform offers various themes and apps that allow entrepreneurs to tailor their stores to meet the specific needs of wholesale customers.
Not only this, but all Shopify stores are mobile-responsive, allowing wholesale buyers to place orders conveniently from any device.
3. Bulk pricing features & secure transactions
The platform supports advanced pricing options, enabling businesses to easily set tiered pricing for bulk purchases.
Moreover, Shopify provides secure payment processing, ensuring that transactions are safe for both the business and its customers.
4. Inventory management with integrated shipping solutions
Shopify includes tools for managing inventory efficiently, helping businesses track stock levels, and streamlining order fulfillment.
Additionally, it simplifies shipping logistics, offering tools for label printing, tracking, and real-time shipping rates tailored for bulk orders.
5. SEO marketing and analytics tools
Shopify provides built-in SEO features and marketing tools, so you won’t have to worry about marketing your business and attracting more wholesale buyers.
Moreover, you can access detailed analytics, which allows businesses to monitor sales trends, customer behavior, and overall performance, facilitating informed decision-making.
6. 24/7 customer support
The best part is that you can benefit from round-the-clock support, which is crucial to your business success. This platform can ensure that assistance is available whenever needed.
Overall, Shopify equips entrepreneurs with the tools and features to launch and manage a wholesale e-commerce business successfully.
How Can You Establish An Ecommerce Business With Shopify?
To get started, you do not need cash flow to scale your wholesale business. You can scale your growth in several ways, whether you need to negotiate with your suppliers. Just follow these steps to start your wholesale eCommerce business.
1. Decide on wholesale items that you want to sell.
Deciding on a product is an excruciating task; creating some wholesale product criteria can help you build a profitable catalog. You can consider these product features when choosing wholesale items to sell.
- Seasonality You can sell portable fans in summer while heaters in winter.
- Profit margin: If you source jute bags for $3, you can sell them to retailers for $10 and get a profit margin of $7
- Size and weight: If you sell small items like accessories, which is cost-effective due to shipping
- Purchase frequency Items that need regular restocks, such as pet foods and printer ink, can generate flowy income compared to selling products with lower purchase frequency.
- Competition: If you sell handmade candles with unique colors and your competitors are not offering that, it can become your USP.
These are some ideas to get you started. If you have anything better in mind you can go with them.
2. Choosing a supplier
If you are not an established wholesaler but wish to start a wholesale business, you must partner with wholesale suppliers. Retailers buy from wholesalers who consistently keep their customers’ favorites. Also, you need to set ground rules with your suppliers to get the product on time and of good quality.
However, while choosing a supplier, you must consider factors such as:
- Don’t rely on a single supplier; you need backups if one fails to deliver.
- Choosing trustable suppliers that have a track record of timely delivery.
- The quality of the product is the most crucial part of business. Make sure you are getting fine quality, as it can break and ruin your customer relationships.
3. Wholesale licenses and permits
Before starting your wholesale business, Obtaining licenses and permits will help you run your business legally. Some of the licenses and permits you need:
- A business license is essential for any business, giving you a legal right to operate in your city.
- Sales tax permit: This license is essential for buying goods without paying sales tax.
- Employer identification number (EIN) is essential if you plan to hire employees.
- Specialized permits are necessary if you sell food items, and you may be required to adhere to food safety requirements.
4. Deciding a wholesale pricing strategy
Defining pricing strategies is crucial for facilitating your wholesale business successfully. Set the prices according to products and whether you sell directly to consumers, small retailers, or small businesses making bulk orders.
Some successful wholesale business models profit at least 50% on bulk orders, whereas profit margins increase when selling smaller quantities.
There are ways you can set prices for your wholesale products; take a look.
- MOQs
Wholesale businesses set minimum order quantities that retailers must meet to place an order. You can use marketing tactics to encourage retailers to place large orders for a better margin upon resale.
- MSRPs
Another great way manufacturer’s suggested Retail Price (MSRP) is a pricing strategy that helps keep your income steady. MSRPs prevent retailers from selling your products for less than the suggested price, helping you keep your prices and profits stable.
MSRPs are usually included in agreements with retailers, ensuring they follow the suggested price, even during sales like Black Friday. As the wholesaler, you decide the pricing guidelines for retailers. Just make sure retailers can still earn money while selling your products at the MSRP.
- Setting payment terms
As a wholesaler, you must decide on payment terms for your customers. Most retailers can’t pay for their stock all at once, so flexible payment options are helpful, such as:
- Immediate payment lets customers pay for their orders right away at checkout.
- Net Payment terms are set dates on which customers have to pay, like 15, 30, and 90 days.
- Payment upon fulfillment is when customers pay only when they receive their order.
However, you can customize these terms based on the size of the order and your relationship with each retailer.
5. Create A B2B e-Commerce Website With Shopify.
Shopify is an easy way to sell to other businesses online. It has unique features for B2B sales, making it simple to customize the shopping experience for different customers.
Here is how you can set up a wholesale store with Shopify:
- Company profiles
With Shopify, you can create profiles for different companies, keeping all their information in one place. Each profile can manage payment terms, product catalogs, tax exemptions, and user permissions.
- Catalogs
You can set wholesale prices with fixed amounts or discounts off retail prices. You can also set rules for minimum and maximum quantities. Based on their needs, different products are offered to different customers, and discounts are provided when customers buy large quantities.
- Customer Accounts
Retailers can log in to view wholesale products and prices, while regular consumers still see standard product pages. Customers can also manage their orders, view past purchases, and save their information.
6. Market and boost your sales
Once you have a solid wholesale business idea and pricing strategy, the next step is to find potential wholesale customers. Here’s how to attract retailers to your business.
- Use your website
If you have a direct-to-customer website, use it to attract wholesale customers. Retailers often look for partnerships with popular online stores.
- Joining a wholesale marketplace
List your products on the wholesale marketplace to reach many retailers. Research different marketplaces, as they may have specific terms and fees.
- Attend trade shows
Trade shows are great for meeting potential customers. Look for events in your industry. Consider attending as a visitor first to see if exhibiting is worth the investment.
- Use incentives to attract buyers
Offer discounts for first orders based on order quantity. Consider low minimum order requirements, free shipping, volume pricing, and various payment options. You can offer bundle deals, discount codes, free samples, or dropshipping services.
- Reach out to complementary brands
Connect with businesses that sell products that complement yours. Use contact forms, social media, or a platform like Shopify Collective to find and reach out to these brands.
7. Expand your team
Starting your wholesale business is a slow process. But when your business expands, so does the team. Each member possesses unique skills. Whether financial analysis or inventory management, you need to create job openings to help your business take off.
Here are some job postings you might need to create:
- Customer success managers: They work with retail customers to drive sales and ensure customer satisfaction
- Quality assurance supervisors: Work with suppliers and manufacturers to oversee the quality of the product
- Logistics coordinators: The manage timely delivery of the bulk orders
- Inventory analysts: They monitor and predict complex inventory needs.
- Office administrators or virtual assistants: Manage daily administrative tasks
- Growth marketers: They look for new retail customers and opportunities for your business.
How Can EmizenTech Help You Establish Your Wholesale Ecommerce With Shopify?
For years, eCommerce has allowed direct-to-consumer brands to grow rapidly compared to traditional storefronts. Now, a new wave of wholesale startups is thriving online, and they are rethinking the wholesale model.
EmizenTech is a shopify development company that can help you establish a successful wholesale e-commerce business on Shopify by leveraging the following benefits.
- We can help you set up a Shopify store efficiently, ensuring that you have all the necessary features for wholesale distribution business.
- With Shopify B2B features, we can customize the shopping experience for retailers and allow them to manage orders easily.
- We can assist you in listing your products on various wholesale marketplaces, helping you to reach a large pool of retailers.
- With our expertise, you’ll get continuous support and guidance as you navigate the wholesale eCommerce landscape.
Partner with us and establish a thriving wholesale eCommerce business on Shopify that benefits both you and your retail partners.
Conclusion
We live in a digital world, and establishing a solid online presence is crucial to thrive in this competitive business landscape.
Thus, wholesale eCommerce involves transactions between two businesses, and every business owner needs to have an online presence significantly as technology changes how customers shop.
If you want to run a successful wholesale business online, using Shopify, designed for wholesale distributors, is a great way to automate processes and keep your customers happy.
You can also streamline your operations and enhance customer satisfaction, setting your business up for success in the competitive market.
Frequently Asked Questions
Yes, Shopify allows you to sell both retail and wholesale products. You can use apps like Shopify Plus to create a separate wholesale storefront.
You can set wholesale prices using specific Shopify apps like Wholesale Club. These apps let you create discount tiers for different customer groups.
Shopify has built-in tools and apps that help you manage inventory, set stock levels, and track orders for both retail and wholesale customers.
EmizenTech specializes in Shopify development and can assist with customizing your store, integrating wholesale features, and optimizing for seamless operations. Contact us for tailored solutions!