In the language of commerce , wholesale refers to the market where goods and materials are transferred in a distribution chain from manufacturers to distributor. Typically, a wholesale distributor makes sales or arranges its purchases of goods and materials between wholesalers or retailers. Statistics show that the annual turnover of the EU wholesale industry was 10.4 tonnes (Statista).
The wholesale distribution process is a predominant concept in e-commerce. The world is aware that electronic commerce is the future and has become the trend to follow in the coming years. In recent years, e-commerce sales reached $5.2 trillion globally.
The market continues to change and e-commerce companies realize new trends, allowing them to reestablish their businesses. Following the latest trends and rectifying them keeps them ahead of the competition. In such a domain, the real triumph lies behind taking and addressing the challenges.
During the time of pandemic, the world experienced great disappointment due to crises and they greatly affected trade and investments. But now, in times of recovery, the market is expected to grow, so it is important to follow the economic trends of the industry to celebrate the results. Companies that lack adaptability may be left behind in the wholesale distribution market.
Now, the question is, how to follow the trends and what are the next wholesale distribution trends? You will learn more about the content.
- What is a distribution channel?
A distribution channel is a network that companies apply to their sales process. It is where the service goes until the product reaches the consumer. The entire process includes wholesalers, buyers, retailers and the platform. There are distribution modes in the process, direct and indirect channels.
Tabla de contenidos
The breakdown of the distribution channel
Wholesale distribution is a process in which goods flow from supply chains to the consumer. In particular, the channel includes companies involved in the distribution of products from manufacturers to suppliers and retailers. The process revolves around purchasing, storing, selling and shipping from physical or online outlets.
The word can be confusing, so here is a detailed breakdown of the dealer names.
- Wholesalers
- Supply House
- Trading companies
- Distributor
- Importer or Exporter
Global e-commerce sales (2014-2026) Statista
The next trends in wholesale distribution
The wholesale distribution landscape is updating its management system, requiring more connection between front entities. Connectivity creates a well-amalgamated view of customer data across all channels. When these attributes come together, it makes the wholesale distribution method work effectively and allows teams and companies to grow together.
Trend 1: Inventory Management and Transparency
Now, companies need inventory management systems to facilitate objective, data-driven decisions. First of all. This type helps to have error-free data. With a system of this type, it allows you to have a head start on the others. Investing in inventory management systems is a worthwhile investment, it is costly and your bottom line, but it is what will save you in the long run.
It can help you achieve higher sales and profits, and have a solid approach to your business from sales to inventory management. In addition, it has a complete update of its clients.
Inventory Management Systems are a platform integrated with ERP systems. The platform is a technologically enhanced system that uses artificial intelligence, financial transaction data and computer vision, and helps track movements.
Furthermore, the system works according to geographical demands and periodic demands. This allows inventory to be refilled before it runs out of products. Finally, you can also keep track of up-to-date inventory forecasts and inventory losses or reduce inventory cost pricing.
Trend 2: Warehouse Management Systems (WMS)
As the wholesale business revolves around bulk production, fulfillment and supplies, Ware House Management (WMS) plays a very important role in improving employee productivity and automating tasks. This system allows you to check stock in and out, count products, labeling and other costs. You can also see SKUs that have the highest share.
The WMS is integrated with accelerated power such as robotics, price planning and other features such as remote monitoring of the distribution and management process. On the other hand, in 2024, small businesses are skeptical about its cost, so they are now integrating micro warehouse. The micro warehouse also fulfills almost all the functions of the Warehouse Management System .
Trend 3: Cloud Computing
In conventional ERP systems, cloud computing provides the same functions. Pricing is half of the ERP system and wholesalers use it for different functionalities. A mass of resellers are shifting towards cloud computing. In that system, one can have a view of all the distribution operations of the business.
It has made many complex operations easier, now you can track customer purchasing behavior, stock updates, availability, other warehouse operations and options. It is more convenient for large operating distributors to manage their inventory and stay up to date on their multiple brands.
The market is extravagantly exploring this system, but no company has developed mobile and cloud-based ERP systems. The system uses real-time tracking data to track financial and SKU-level inventory audit trails and eliminate the burden of pricing and order processing.
Trend 4: More personalized services
Personalization has gone from nice-to-have to necessity in B2B sales.
B2B distribution seeks more personalized business and services. This has been a trend in the market and is now gaining momentum. One of the ways in which B2B business distribution will likely depend on customization and alterations according to the customer you serve. These modifications are met by providing them with their unique needs and demands.
Secondly, the distribution methods upgrade them by providing quality customer services, may include an automated chat support system or integrated voice assistants. Moving on to a more technologically influenced service, get a precise system like Product Information Management (PIM). It will allow you to have a suitable channel with quality descriptions and photos.
PIM – Helps maintain a consistent management system and serves as a central figure in product content management, as well as synchronizing products across the IT stack, such as OMS, ERP, and third-party connections.
By integrating PIM, you flourish and manage distribution across all channels and keep product information up-to-date. So, as 2024 is just around the corner. People now expect more in terms of customer service. Therefore, PIM is a great way to keep them informed with accurate and personalized information.
Trend 5: A simplified and evolved supply chain
Crises can occur at any time and have been observed in recent years. Therefore, under unfavorable conditions, there could be some disruption in the distribution process. Therefore, considering such situations, a company must be able to thrive and work in any environment.
So, taking into account two fundamental points, crises and the new year, here are some solutions that should be prioritized.
Online ordering system
The diversion of people to electronic commerce has been awakened since the pandemic occurred. There has been an astonishing increase in online shopping. This trend will prevail only if great services are provided to consumers. Therefore, as a wholesale distributor it is a duty to make the service agile and friendly for the consumer.
From brick and mortar to online
The barriers of geographical locations are a restriction for companies. Therefore, online wholesale distribution requires conducting your operations online. There has already been a lot of growth in online distribution, but wholesale distributors need to be more vigilant.
A more valuable brand
A company has to serve value to its customer and this depends on how much they are investing in it. Therefore, now companies would have to be more valuable and run a personalized distribution channel.
Trend 6: A mature and rapid technological evolution
The pace and growth of technology is unprecedented. Keeping up with the acceleration of technology could be a daunting task, but it is the most necessary. Terms like automation, artificial intelligence, and other transformative technology stacks are worth being a part of the wholesale distribution channel in 2023.
As a wholesale distribution platform, you need to work on the rise of machine learning, IoT, AI, and other latest facets of technology. These facets only contribute to the growth of any platform. RPA and AI are the latest trends in automation, and by combining them they better serve the interest of companies. Therefore, if you are looking to have well-managed inventory and operations control, automated sensors and tracking are vital components.
Trend 7: Sustainable distribution channel
Since the pandemic, 52% of companies trust more in sustainability.
Among the line of upcoming trends, the ecocentric shopping experience is more reliable. They have a strategic effect on the success of the business. It means that brands must be more cautious about the environment and its sustainability. Companies have to take care of greenhouse emissions (GHG), and tree cutting are critical challenges that wholesale distribution platforms must face.
Warehouses, distribution supply chains and inventories are the main factors involved in achieving sustainability. Therefore, companies can expect to work on remote value chain-based platforms. By initiating such steps, many companies and platforms can investigate the matter and follow in their footsteps.
In this area, you can work on clean energy base systems, a green warehouse and the reduction of plastic are some examples of innovation in sustainability. In addition, consumers should also have options for green options, such as sustainable purchasing options, environmentally friendly goods and materials, and deliver all products at once.
Trend 8: The brand will opt for omnichannel in 2024 The future of commerce
According to Harvard Business Review,
Omnichannel customers spend 10% more online and 4% more in stores.
2024 is going to be more difficult, since we must reflect on multiple components, one of them omnichannel. The market is going to be more competitive and you have to stay on top of your heels and have a relaxed demeanor. You have to do what consumers like and make the platform more customer-centric.
As it is a top preference for people, it is likely to be one of the best options in 2024. Selling online and offline will be a part of B2B, and the wholesale distribution business needs to catch up with that. An omnichannel method is selling on multiple channels with the intention of doing so seamlessly and customer-centric.
By integrating robust technology tools and software, it will allow you to have an orderly approach to omnichannel selling. If you have a successful journey with omnichannel, you can experience a huge share of brand awareness, customer retention, and incredible sales.
|
Impact of wholesale distribution trends |
|
|
Inventory management systems |
13% |
|
Warehouse management |
7% |
|
Cloud Computing |
7% |
|
Artificial intelligence |
6% |
|
Sustainable distribution channel |
17% |
|
Omnichannel |
73% |
Wholesale distribution: what does the future hold for us?
It is not a hidden fact that e-commerce will be a major component in 2024. The year of the nest certainly expects a lot in streamlining and adapting new trends. These trends are constantly changing and shaping e-commerce in all parts of the world. According to the predictions of experts, automation, personalization, private brands and suitability are going to maintain the future charge of the e-commerce market.
Determine where you are as a business and then evaluate what changes you might need for your wholesale platform. The success of any platform lies in how much it is investing and putting in to bring changes.
The key takeaways
Here are some key takeaways,
- Brands are on the way to learning sustainability
- Personalization is one of the keys to expanding customer loyalty.
- Using the latest technology stacks is going to be a leading component.
- Customer needs should be the most prioritized.
- Interactions and communication is one way to make a robust brand.
