6 Trends That Will Change The Wholesale Industry In 2023
by Sumona Business Development 06 January 2023
In 2023, wholesalers should still keep the lessons from the previous years in mind as they take on new challenges. In that context, they need to carefully reevaluate their business operation strategies and adjust to the rapidly shifting market yet again.
However, as they take on new challenges, they should remember the lessons the past several years have taught them. For instance, wholesale retailers who invested in eCommerce quickly saw their profits grow as sales moved primarily online.
According to research, 21% of distributors claimed that over 30% of all revenues came from eCommerce, and this number is projected to grow over the coming years. Needless to say, to benefit from anticipated increases in eCommerce sales, distributors are adopting more and more digital strategies to increase their revenue and profits.
Let’s examine the wholesale distribution trends we anticipate happening in 2023 and how wholesale companies might adapt to them.
Wholesale Online Store Sales
Wholesalers experienced severe damage from the Covid-19 pandemic, just like most industries did. The wholesale sector has significantly benefited from an increase in online sales, and according to reports, this trend is anticipated to continue as more B2B buyers shift their business online.
In fact, according to Gartner, by 2025, 80% of all sales interactions between suppliers and customers will occur online. For your wholesale business to succeed in 2023, developing a solid eCommerce sales strategy is essential, and creating an online store is the first step. To remain competitive in a post-pandemic world, allowing clients to make purchases online has become increasingly important, even in the B2B world.
Do you know that today’s wholesale B2B customers demand the same amount of customization they would get from an in-store purchase? To cater to that, wholesale retailers must be aware of the unique tastes of their clients and create a tailored approach to each one of their business partners.
Moreover, as more and more wholesale deals take place on some of the most famous digital B2B wholesale platforms, to facilitate customization on a B2B wholesale marketplace, it is crucial for sellers to have clear communication channels with buyers and to have systems in place to manage the customization process.
This may involve using customization tools or software or working with manufacturers or suppliers who can accommodate custom orders.
Over 47 million US workers left their jobs in 2021 as part of the so-called great resignation, with wholesale being among the industries most severely hit. Frontline workers like truck drivers and warehouse workers are becoming harder to find, and staff who deal directly with customers are calling for higher pay, a better work-life balance, and better working conditions.
Wholesalers must put a priority on efficient hiring and personnel retention in 2023. Improving employee experience is the first step towards doing this. To identify areas for improvement, seek input from your staff and pay attention to what they have to say. Employees are more likely to remain loyal when they feel at ease communicating their requirements.
Sales Across All Channels
Although selling through many channels, both on and offline, is nothing new in the retail sector; the wholesale sector frequently lags. To give customers a seamless, fully integrated, cross-platform purchasing experience, omnichannel selling is the technique of conducting business via many channels. The user experience is constantly being improved by omnichannel sales, which place a strong emphasis on the customer.
Additionally, you can learn a lot about the preferences and spending patterns of your clients by using the right technology and analytics, allowing you to send customized content to them through their chosen channels.
The Tech Revolution In Wholesale
Wholesale businesses cannot afford to lag, given how quickly technology develops. Every industry is being transformed by artificial intelligence, cloud computing, and automation; therefore, keeping up with these changes should be a significant component of the business models of wholesale distributors.
Distributors typically follow a fairly conventional approach, but the epidemic made it evident that they needed to change to the online market quickly. For instance, 3D product configurators let wholesalers supply customized products to online buyers and enhance their entire customer experience.
Smart Inventory Control
It’s time to automate inventory management if your company still uses paper records. It can be challenging to manage numerous warehouses and store enormous volumes of inventory for wholesalers who trade in bulk. The risk of excess inventory can be decreased and the process made easier for the staff by using inventory management software.
Computerized systems watch the flow of supplies and sales, making it simpler to track what is selling and what isn’t, as well as the general level of product demand. Automated processing gives you vital information about your organization that helps you make strategic decisions.
The wholesaling sector is predicted to experience significant growth in 2023. For businesses to succeed in the dynamic market, embracing the move to eCommerce and staying current with digital trends is essential.
Start by assessing your company’s existing situation to see how you may best position yourself to seize the opportunities that lie ahead. If these trends have taught us anything, it is that distributors who can successfully plan and get ready for the rapid pace of technological change will be the ones that succeed.