For quite some time, we have seen an increase in the number of retail outlets scattered throughout the country. They are an important part of the final distribution channel for consumers and are usually part of a larger group of retail chains that share the same brand, centralized management, and follow the similar business practices.
When earlier shopping visits were only limited to the nearby Kirana stores, people are now frequenting the aisles of one or many of these retail chains in their cities. They are quite popular, not only because of the discounted products but also because of the variety of products these retail chains offer and the convenience they offer to the end consumers.
Despite their varying sizes, chain stores are commonly classified as department stores, grocery stores, limited-price stores, supermarket sand so on. And, like small retail and Kirana stores, these chains rely heavily on wholesalers when it comes to purchasing products.
How Important Are Wholesalers to Retail Chains?
A wholesaler or a distributor is a company whose whole model is based on being an intermediary between the manufacturer and the retailer. It is a powerful distribution channel that buys large quantities of goods from manufacturers at bulk and special pricings and sells them at deep discounts to retailers, businesses, industries, commercial shops, and other final distributors.
Wholesalers are important because they can divide bulk product supplies into smaller quantities for retailers. Furthermore, because they deal directly with manufacturers, they can stabilize demand-supply fluctuations as well.
The following are the ways retail chains benefit from wholesale purchases.
Choice of Products
Wholesalers can stock a diverse range of products to meet the needs of their customers. It could be anything from well-known brands to a diverse range of regionally popular items, all fitting into the same niche. This means that retail chains have the opportunity to broaden the range of products available to their customers. Naturally, this can help retailers reach out to more customers looking for those products.
Deals & Offers
When it comes to bulk purchasing, retail chains can benefit greatly from the wholesale discount prices offered by wholesalers. Because they must stock products in bulk for multiple retail chains, the additional discounts and offers can reduce the overall purchase cost and provide a competitive advantage in the market.
Shipping
One of the most obvious advantages of purchasing in bulk is that the shipping costs and time required to deliver those products are significantly lower than ordering in batches or separately. Lower shipping costs mean even more savings for the retail chain. Additionally, multiple payment options like cash on delivery, Internet banking gives retailers more freedom to pay for the products however they wish.
Traditionally, wholesalers operated with warehouses, paper receipts, and a large staff base. The advent of technology and the internet has paved the way for e-commerce portals that allow retailers to buy wholesale products online. Many wholesalers also offer the ease of shopping from B2B wholesale apps in India.
Aside from making product searches easier, these online web portals and mobile applications offer features like real-time product tracking, flexible payment options, updates on deals and offers, and much more. And, given that the Indian retail industry is one of the most dynamic and fast-paced industries, adopting these new and cutting-edge approaches can provide a competitive advantage to the retail chains.