All You Need To Know About Wholesale Online Product Distribution

22 June 2021
 Categories: Shopping, Blog

Are you a wholesaler looking for an effective distribution channel? Your ability to sell more products largely depends on the channel of distribution. One of the most effective distribution channels is through online platforms. Online distribution relies on internet-based technologies to facilitate product exchange. Thus, wholesale online production distribution can help a business reach more retailers conveniently. This post highlights critical aspects of online product distribution for a wholesale business.

What is Wholesale Distribution?

Distribution is the process of delivering products from the manufacturer to the customers. A wholesale company uses a business-to-business (B2B) distribution, model. In this case, a wholesaler sells products to other businesses instead of selling directly to consumers. The other distinctive feature of a wholesale business is that it deals with large quantities of products. Therefore, wholesalers can offer retailers products at a lower cost by capitalizing on the economies of scale. Notably, a wholesaler can be a manufacturer or an exclusive distributor of the manufacturer. Through wholesalers, a manufacturer can have an extensive market reach. More so, consumers can have access to a stable supply of goods in the market.

Online Product Distribution Strategy

Traditional channels of product distribution primarily rely on physical transactions. With the advent and commercialization of the internet and increased technological innovations, businesses are shifting to electronic commerce. In an online distribution system, one requires the internet, an electronic device, and software to facilitate communication between seller and buyer. Thus, a wholesale online product distribution system allows retailers to order and pay for products through an electronic platform. More so, the wholesaler can also manage the distribution network and processes electronically.

Benefits of Wholesale Online Product Distribution

Real-time Inventory Monitoring

One of the critical tasks in a distribution system is monitoring product inventory. It can be challenging to track out-of-stock and overstock products when dealing with large quantities of stock and retailers. An online product distribution system allows a wholesaler to automate the inventory management process. In this way, one can achieve real-time stock monitoring to prevent dead stock and product shortages for an optimal distribution process.

Data Management

A wholesale distribution system generates a lot of data on sales. An online product distribution system generates automatic daily reports on relevant data. For instance, you can keep track and compare the distribution outlets and their share of sales. As a result, you can make critical decisions on where to focus your distribution for higher returns. More so, the system maintains updated information on your historical sales. Such information is crucial for analyzing the market distribution trends.

Market Reach

A vital benefit of any online distribution system is the ability to reach more buyers. Primarily, most buyers start their product sale search online. Thus, wholesalers with an online presence are likely to get potential retailers shopping for products. Again, a wholesaler can use multiple online platforms to reach a diverse audience. Therefore, it makes sense to distribute through online media where most potential buyers shop. 

Are you persuaded yet on the benefits of wholesale online product distribution? Invest in an online product distribution system to reach more buyers, manage data, and monitor inventory in real-time. For more information, reach out to a local service provider, like Product Buying Solutions.