A wholesale market can increase the efficiency of wholesale and retail distribution by encouraging competition and inducing efficiency.
The great advantage of a wholesale market is that it brings together in a given place all the supply and demand for a given product, thus making it possible to obtain a single equilibrium price. Price formation thus becomes transparent and transaction costs are greatly reduced.
Wholesale sales allow the law of supply and demand to converge to establish the single price of a product. Thus, a wholesale market is a meeting place between supply and demand and price formation.
Wholesale trade is also called wholesale, trade, or business-to-business (B2B). It consists of the marketing of products (or services) in large quantities.
This particular marketing is not carried out with the usual retailers (specialized stores and other large surfaces) but directly near what one calls a wholesaler.
The wholesaler is the intermediary between producers and retailers. It is a professional who is responsible for selling products or services made by professionals (producers), to other professionals (retailers).
Advantages of wholesale trade
The main advantage of wholesale trade is obviously financial. By eliminating the intermediary of the retailer, savings are logically achieved. The more intermediaries, the more the prices are effectively inflated. After all, everyone should be able to find their account.
The second positive point of wholesale trade is the possibility left to buy large quantities, quantities which retailers do not always have, precisely.
Here are a few more benefits:
– Since supply and demand are concentrated in one place, competition can be encouraged, the exchange process is more efficient (efficient allocation of resources and prices) and the formation of a single price of balance is favored and facilitated;
– Inspection, quality control, sorting, and grading into quality classes becomes easier and more objective. In addition, the use of standard weights and measures is encouraged as well as the separate sale of different qualities. Thus, the products are well cleaned before being brought to the market;
– Product handling becomes more efficient since the wholesale market has enough space for parking, sorting, filing, and unloading at the lifting dock for lifting equipment, conveyor belts, etc.
– A large central wholesale market could have a significant cost-cutting effect and lead to better market performance.
How can Wholesale for WooCommerce help you sale wholesale online
Wholesale for WooCommerce is a WooCommerce extension that gives you the ability to display wholesale rates & prices that are only visible to your wholesale customers.
Through the Multiple User Role creation feature, not only are you able to create multiple wholesale roles for your users, but you can also define different discounts for each role with support for both simple and variable products.
Here are some of the benefits Wholesale for WooCommerce can give your online store:
- Create & Manage Multiple User Roles
Create multiple user roles for wholesale members so that you can segregate your customers and their buying/selling preferences. Create unlimited wholesale user roles and define different discounts for each role through products.
- Manage Wholesale prices for single or multiple products.
Set your wholesale prices for both individual or multiple products and their variations. Similarly, add the price input field so you can enter separate pricing information for users with the “Wholesale customer” role.
- Manage Approval/Rejection requests – Manually or Automatically.
Manage registration form requests through an easy to use in-built system that allows you to accept or reject users via manual or automatic setting options.
- Front-end Wholesale Registration form.
Create and embed an easy Wholesale Registration Form on your website that allows users to sign-up as wholesale customers.
- Apply wholesale prices based on minimum quantity.
You can set the minimum quantity on wholesale products so if the user’s order doesn’t meet that quantity requirement, they end up paying the retail price.
- Control product and price visibility.
Optionally hide “retail only” products or its variations from wholesale shoppers – Have control over your product and its pricing visibility options.
- Add a fixed amount or percentage-based discount pricing.
Option to add fixed amount prices on wholesale products or their variations, or percentage-based discounts on pre-defined quantities. These settings can be enabled on specific products, specific product categories, or total cart quantity.
- Add minimum quantity restrictions on wholesale Products.
This functionality allows you to apply minimum quantity restrictions on wholesale products so wholesalers must add to the cart the minimum quantity to get a discount.
- Restrict product visibility
Restrict product visibility from single or multiple wholesale user roles. These products will only be visible to retail customers.
- Restrict product category visibility
Restrict product category visibility for single or multiple wholesaler user roles. Save time from hiding products individually (one by one).
The wholesaler uses its distribution networks to easily reach end consumers.
The distribution networks of wholesale companies generate competitive advantages when there is a great knowledge of the market and great brand acceptance.
If you are looking to sell wholesale online, Wholesale for WooCommerce is designed to help you manage your wholesale orders more efficiently.