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Wholesaling, also known as distribution, is a stage between the creation of a good or service and its ultimate distribution to an end-user via retail trade channels. Despite the rise of so-called wholesale clubs aimed at the consumer market, wholesale trade is typically characterized by business-to-business transactions. 

Traditionally, wholesale markets have been associated with physical product distribution, but wholesale markets for other economic sectors, such as energy and telecommunications services, also exist.

Merchandise wholesaling is almost evenly divided in terms of value between trade-in durable goods and trade-in nondurables. Durable goods involve more businesses, more workers, and higher payrolls compared to non-durable goods.

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What are some advantages of wholesale?

There are several major reasons why wholesaling is important. To begin, all goods and supplies required for their production pass through some form of middle agent and wholesaling system. As a result, the efficient operation of wholesale linkages directly contributes to a society's economic well-being. Wholesaling broadens the manufacturer's consumer market potential in terms of geographical locations and consumer purchasing power while also generating cash flow.

Second, for most small producers, an immediate geographic location is insufficient to provide and maintain a consistent customer base for their operations. Smaller producers must have avenues to develop market segments of potential customers to sell their goods. They must also ensure that their goods are of the quality customers want at prices they are willing to pay. 

Wholesalers' role is to connect to a larger market base, i.e., to find out where customers are and how to reach them. In this sense, wholesaling makes use of time and place in terms of information and availability. Wholesalers generate utility by stockpiling goods that buyers can use at a lower cost than direct exchange.

Finally, wholesalers serve as distribution channels, facilitating communication between markets and producers within markets. Whereas wholesaling and retailing both receive, store, and distribute goods, the importance of wholesaling lies in its ability to moderate supply and demand fluctuations and deal with larger transactions with less emphasis on selling techniques, services, and product promotion. Wholesaling can shift the distribution of goods from surplus to deficit areas.

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What are some marketing functions provided by wholesalers to buyers?

Wholesalers can only be successful if they can meet the needs of their customers, who can be retailers or other wholesalers. Wholesalers provide the following marketing services to their customers:

  • Providing a sufficient quantity of the producer's goods for resale by buyers
  • Allowing for greater geographical access and diversity in the acquisition of goods
  • Ensuring and maintaining a quality dimension with the goods acquired and resold
  • Lowering the number of producer contacts required to provide cost-effectiveness
  • Allowing immediate access to a supply of goods
  • Assembling and arranging compatible goods from a variety of producers for resale
  • Reducing buyer transportation costs by purchasing larger quantities of goods and distributing them in smaller amounts for resale
  • Assisting producers in understanding and appreciating consumerism in their manufacturing process

Outlook

To remain competitive, many wholesalers have had to change their business practices due to new technology, global competition, and retail consolidation. While some experts have gone so far as to predict that these factors will eliminate certain types of wholesalers, even a cautious forecast predicts that the number of wholesalers will continue to decline as the largest and most efficient—which are not necessarily the same—are best able to deal with market changes.

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Looking for the best wholesale manufacturer? We’ve got you covered!

If you're tired of haggling for a lower price with a middleman, or if you're afraid of being cheated by bad suppliers because you can't monitor production in person, CJ Wholesale is the perfect choice for you!

CJ Wholesale specializes in branding services for both large and small businesses, such as Sample Customization, Print on Demand, Custom Packaging & Private Label, and Customized Professional Photography.

At CJ Wholesale, you can find direct factories and original manufacturers, ensuring you get the best price for your products. Being misguided by dishonest suppliers is a risk you need not worry about when working with us. We perform a 100 percent quality inspection on every item twice, to determine maximum authenticity. 

Why choose CJ Wholesale?

CJ Wholesale works with over 50 of the industry's largest companies/brands, including top eCommerce marketplaces, logistics providers, and sourcing plugins. Some of our partners include FedEx, Shopify, Amazon, and Wix. This gives them access to a plethora of product listings, faster shipping times at lower prices, and seamless platform integration. 

Furthermore, with a professional team of 845 dedicated employees, CJ assists entrepreneurs in easily creating and growing their businesses. Our sourcing service is free, convenient, and reliable and you can get help at any time with 24/7 online customer service.

How to get started on CJ Wholesale?

Wholesale order is when you purchase a product in bulk to stock in your store for retail or online sales. You can order a single item or a set of items.

The general steps are as follows:

  1. Locate a product
  2. Consult with personal sourcing agent 
  3. Place an order.

Order a single product or a set of products.

-Specific steps are as follows:

1. Locate a product. You can look for a product by category, name, or SKU.

2. Make an order.

Things to take note of:

  • If you're only ordering one item, please change the quantity and click "Buy now." To ship the product to your address, select "Bulk Purchase" in the Purchase Cart.
  • If you plan to order multiple products, please click "Buy Now" for each product to add them to your Purchase Cart one at a time. Then, please confirm the products and click "Bulk Purchase" for the items you've chosen.

Conclusion

Finding the right wholesale distributor is essential for effectively distributing your products. The right partnership will result in your product being placed on appropriate shelves, as well as several exciting opportunities and leads. It is critical to plan for distribution success. If you are not prepared, you will jeopardize your business and fail to achieve the desired results! 

About Eva

As a member of the CJ team, Eva focuses on analyzing and producing the latest eCommerce-related content for online merchants from all over the world.

She also likes to communicate with users on social media to collect first-hand feedback on their services as well as the whole industry.

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