Why become a wholesaler?

 

Why create a wholesale channel?

This newer version of wholesaling, which often takes place in online marketplaces or through smaller boutiques, has advantages that are attracting direct-to-consumer brands too.

Here are 3 reasons why opening up a wholesale channel might benefit your business. 

1. Increase sales without increasing marketing spend 

As a direct-to-consumer brand, a large amount of your budget needs to be allocated to marketing in order to grow. For every new customer acquired, there is often a cost, after all.

By selling your products wholesale, you can let another business shoulder the cost of acquiring customers, and reinvest your time and money in other areas of your business.

2. Leverage other brands’ audiences to sell your product 

Just as acquiring new customers costs money, building a loyal audience of fans and customers is not an easy feat.

By creating a wholesale partnership with an established brand that has already made a name for itself within your niche, you can leverage the company's goodwill to get your product into the hands of consumers.

3. Enter new channels with less risk

Expanding your business to a new channel comes with a series of associated costs like warehousing and logistics, or starting from scratch marketing to a retail base that hasn’t heard of you.

Finding another partner with an existing presence and supply chain in a new channel can help reduce the risk if expansion by cutting your setup costs. 

Ultimately, a wholesale business model benefits both the retailer and the wholesaler by creating efficiencies.

The retailer gets a new, often complementary, product to sell without investing in research and development, and the wholesaler saves money on marketing by gaining direct access to an existing customer base.

 

For more information regarding joining the program as a wholesaler please email or call:

Craig Matthews
+61 407 467 670
craig.ma@mystockbox.com.au