B2B or business-to-business wholesale companies are the ones which sell their products in bulk to other enterprises such as items of wholesale bar supplies being sold from a wholesaler to a retail liquor store. The company purchasing those products can either use those products for consumption at the internal level, or it can resell those products in smaller quantities, to individual customers.
The term “big-box retail” is often associated with B2B wholesale. This refers specifically to those wholesale enterprises which sell to chain companies, like Walmart, Target, and so on. When doing business with these chain enterprises, there usually is little flexibility involved.
B2B wholesale certainly has many great advantages. First of all, we could say that if offers much better control over the supply of goods. Brand visibility can also get increased due to this type of business. In case you are having your products resold by wholesale partners, you are helping your brand products become more known by your target audience, and not only. This further leads to more opportunities for expansion.
B2B wholesale can actually contribute to global economy’s development. Running this type of business can certainly be a productive endeavor for entrepreneurs. B2B wholesale businesses keep a fixed margin of profit, i.e. that of about 3-10%. The profit obtained from selling a certain quantity of goods can be evaluated in a more precise manner.