As I’ve explained in another article, wholesaling involves e-commerce businesses selling their products to dedicated retailers, who then sell them to their customers. In this way, the retailer takes a commission and the supplier turns a profit without having to spend money on marketing costs, all while exposing their products to the retailer’s existing audience.
However, there are a number of cons to wholesaling that businesses need to consider before they start using this sales method.
- Zero control over marketing processes
With wholesaling, once you sell your products to the retailer, you lose all control over the sales and marketing process. You have no say in the ways they present your products to their customers, and cannot pull your items from their shelves if you disagree with their marketing tactics.
- High costs and small profits
With wholesaling, retailers will nearly always bulk-buy stock to sell on, and demand lower prices per item in exchange. This means that not only do you have to spend far more on manufacture and storage of a larger amount of stock than you would normally produce, but you earn less money for every item you make and sell through wholesaling as opposed to just selling directly to the customer.
- Difficult to find appropriate retailers
The issues I explain above are reliant on the fact that you’ve even found a retailer to sell your items in the first place. In this day and age of online shopping, it is harder and harder for brands to find appropriate and interested retailers to sell their products, and even without all this competition, it is a serious challenge to even find retailers with similar values or attitudes to the supplier.
With all of this in mind, then, it can be a real struggle for e-commerce brands to take advantage of wholesaling to make a profit. Thankfully, with CrossMyStore, there’s a better way – Cross-Store Selling.
Cross-Store selling, an alternative way to sell more
With this innovative new collaborative marketing strategy, brands are able to implement partnerships which take the original idea of wholesaling and drastically improve it.
As with the original sales technique, brands wanting to act as suppliers provide their stock to retailers to sell for them, letting them earn profit without paying for marketing costs.
However, with CrossMystore the problems I listed above are all addressed so that the supplier can benefit like never before.
- The supplier keeps control, commitment-free
With wholesaling, the supplier loses all say over their products once they are passed on to the retailer. However, with Cross-Store Selling, the supplier stays in the driving seat the whole way through. First of all, suppliers can review any retailer requesting to sell their products before accepting or declining them, and choose which items they have access to. Then, even though the retailer is in charge of marketing the stock, the inventory management stays with the supplier so that they can guarantee item and delivery quality. Best of all, they can constantly review the way in which their products are sold and can withdraw their stock at any time, commitment and hassle-free!
- High profits, small costs
As with wholesaling, Cross-Store Selling saves suppliers money as they don’t have to worry about marketing costs. However, this new marketing technique is much more effective than wholesaling in a number of ways. First of all, the supplier has control over their stock the whole way through, meaning that they don’t have to worry about bulk production costs and the transport of large amounts of stock to the retailer. Their retailer simply lists their items in their store while the supplier keeps them in their own storage facility, and our automated software synchronizes stock level and alerts the supplier whenever an order needs to be sent out. On top of this, the supplier doesn’t have to worry about being forced to charge lower prices for their items – any item listed in the retailer’s store is sold at full price, and the retailer simply takes a cut for commission instead of forcing the supplier to sell their products at lower rates.
- Retailers are easy to find
With Cross-Store Selling, gone are the days of suppliers struggling to find appropriate retailers to sell their products. As I’ve said, with CrossMyStore, suppliers have access to a complete directory of brands who can sell their items, and can easily review requests from retailers to kick off their partnership.
As you can see, with Cross-Store Selling you can make the most out of your existing wholesaling strategy and avoid all the downsides associated with it. With CrossMyStore, it really couldn’t be easier to get your products into view of your future customers and sell more stuff. Sign up today and elevate your marketing and sales strategy like never before!