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The Pros and Cons of Wholesale Distributors

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No matter what the size of your business, you might be considering sourcing a wholesale distributor. A key factor in selling your products, they can be an invaluable resource in the long term. Before settling on a wholesaler, however, it’s a good idea to spend some time doing research into which ones are available in your location. 

Often, businesses will outsource their wholesale needs to companies that are further away because they are cheaper. And although this might seem tempting at first, it’s clear that it could cost your company a lot more in the long run. For example, if you have an issue with a batch of products, it could be difficult to make the changes that are needed if your wholesaler is based 1000’s of miles away.

Take the time and look at a variety of different options – paying attention to the reviews that they get, their portfolios and their prices. You can then compare and contrast based on your specific requirements. 

As well as looking at an array of wholesalers, it’s also a good idea to consider the pros and cons that come with them. The difference between hiring a wholesaler and looking into other options, you need to ensure that they are an exact fit for what you are selling. With so many companies now offering these services – from Martello to Harrison’s Direct available in this country, the possibilities are seemingly endless.

Firstly, let’s start with the pros:

  • They can distribute products at a high volume

If you’re a big organisation or you are a small business and you want to expand what you offer, a wholesaler is a viable option. Storing and distributing products at a large volume, you can get your products out to your customers a lot faster. Once they have established a good relationship with you, you will also find that the moment they are getting close to selling all of the products, they will return to you directly for a restock. 

  • They Can Take Control of Sales

Wholesalers can have control over setting minimum orders, which gives them better control of forecasting potential revenue and sales. They can also directly assist with inventory, as mentioned above, informing you on how many products they have left to sell. 

  • They Will Streamline The Process

Wholesalers are also helpful for your business as they will streamline the purchasing systems so that it’s easier for you and your customers. Saving you time and money, the overall process will run a lot more smoothly with the assistance of a wholesale distributor. 

And now, the cons:

  • They Can Be Expensive

Of course, even though the potential of wholesalers is great in terms of long term goals, you will need the capital to get the process started. Wholesalers can be expensive, so you need to ensure that your business has the revenue to open up this option.

  • They Require A Large Number of Products

Even though some smaller businesses will turn to wholesalers once they start to become successful, it’s clear that they might not be appropriate for all businesses. If your industry or the size of your business simply doesn’t require a wholesaler, then it might not be worth investing in one. You need to make sure that you have enough to sell – without having to worry about the costs of storing the little quantity that you have.

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