Not all businesses require you to create your own products or deliver a service yourself.
You can sell products by leveraging the wholesale model, where you act as a middleman.
You purchase items from a distributor or manufacturer and sell those products at your storefront.
We’ve put together four tips you’ll want to know to ensure success in your e-commerce business.
1. Find a Reputable Wholesale Supplier
A wholesale supper is a manufacturer that supplies your goods by selling you those items at wholesale price. This allows you to markup the price and sell it for a profit at the retail price.
With many suppliers producing knock-off products, it’s important to thoroughly inspect their quality. We recommend performing a minimum order beforehand to see the products in person.
For example, if you want to find a supplier that sells wholesale custom hats, you can likely work with the supplier to place your logo or design on the hat and place a minimum order before making a bulk purchase.
You also want to negotiate the price if possible. The more you buy, the greater the discount you may get. Lastly, check for complaints because wholesalers should have a good reputation amongst their clientele. If they receive complaints, that could be a recipe for disaster since your customers will likely complain about the product’s quality.
2. Have a Customer Retention Plan
Many e-commerce companies struggle to retain customers. They constantly rely on increasing ad spending and marketing budgets to acquire new sales. However, the best brands focus equally on customer retention, so they can sustain their business even without huge marketing spending.
As an e-commerce business, there are many ways you can implement a customer retention plan. For example, a well-incentivized customer referral program can convert current customers into loyal ambassadors. Whether discounts, exclusive access, or other perks, referral and loyalty programs are a great way to retain customers.
3. Create a Unique Brand
Your brand is how others perceive your business. All elements that come with it, like your logo, social media, website, and packaging, will affect what your audience thinks of you.
The key is to understand your values and your ideal customer. If you’re a brand prioritizing sustainable living, you want to ensure your messaging reflects that. This lets you attract the right customer base so they’re thrilled to keep buying from you.
Most markets will be competitive in the sense that other e-commerce stores are selling the same products. Thus, it’s vital to differentiate yourself through branding by telling the story of your e-commerce business. Think of Dollar Shave Club, which sold for $1 billion dollars in 2016. They’ve changed the shaving industry by adding a subscription model and implementing a disruptive marketing strategy.
Wrapping It Up
The wholesale trade is worth about half a trillion dollars in the US and will continually grow with time. Thus, there’s plenty of opportunity for new sellers to come into the space without a shortage of buyers.