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Home Sponsored Choosing an Online Wholesale Marketplace: Which One is Right for Your Business?

Choosing an Online Wholesale Marketplace: Which One is Right for Your Business?

In the relentless pursuit of cost optimization, businesses are always looking for ways to save money. Some are ditching the traditional brick-and-mortar storefronts and going with a strictly online presence. 

You list your inventory on an online marketplace and ship products out as they’re purchased by consumers. Not only are you eliminating costs associated with building leases, but you’re also saving on staff overhead. 

You can further reduce operating costs by using an online wholesale marketplace. You can find bulk inventory at ridiculously low prices. However, which wholesale marketplace do you use? There’s more than one option.

What is an Online Wholesale Marketplace

If you’re not familiar with online wholesale marketplaces, the premise is fairly straightforward. Like the name implies, the wholesaler is online. 

In other words, there isn’t a giant warehouse where you can browse through the available stock. Instead, you can scroll through the inventory in the comfort of your home or office. Just think, you can purchase inventory for your business without getting off your couch.

The marketplace doesn’t actually have the inventory you’re browsing through. Instead, it brings wholesale suppliers together in one convenient website or marketplace. You select the wholesale supplier that best fits your business needs, click on what you want to purchase, and list it on your site. 

Now, you have inventory to sell on your e-commerce site. Best of all, since it’s wholesale you only paid a fraction of what the inventory’s worth.

Online wholesale marketplaces can also connect you with other retailers and customers. Other retailers can shop your products for interesting ones that fit their consumer base. Customers can also browse and buy products they need to have in their lives. 

Whether your business is just getting off the ground or you’re looking for ways to grow your customer list, wholesale marketplaces can help.

Consider These Factors When Choosing an Online Wholesale Marketplace

You’ll quickly notice there’s more than one or two wholesale marketplaces online. Originally, Amazon had the lion’s share of the market but this has changed. Now, there’s no shortage of wholesalers to choose from. This is good news but can make it a little complicated to find the best one for your business. 

Not all wholesale marketplaces are the same and this can affect your ability to sell your products. So, what should you consider before signing up with an online marketplace?

Target Audience

There are a few questions to consider when it comes to your target audience. Are you trying to reach an international audience, domestic, or do you want to stay limited to your specific area? 

Whatever your response, you want to make sure the wholesale marketplace is reaching the same audience. For example, if you want to stay with a domestic audience, you probably don’t want to go with a marketplace that focuses on international sales.

Your target audience is comprised of consumers who are interested in your goods. If you deal in fashion, a marketplace with a large following of electronic-minded buyers probably isn’t going to be a good fit. 

With that being said, you may also want to avoid a ton of competition. If you and hundreds of other online retailers are selling summer dresses, you may find it a little difficult to break in. Consumer loyalty is something else to consider, especially in crowded niches. 

Sometimes it’s best to go with a wholesale marketplace that offers a wide variety of products. This way, you still have access to your target audience without a lot of competition.

Reputation

Brand reputation is crucial for your business’s success. Your business may even have a stellar reputation with consumers, but this can quickly change if the wholesale marketplace doesn’t live up to expectations.

Before you start buying and selling on a wholesale marketplace site, do your research. Yes, this can be time-consuming but it’s worth the effort when your brand’s reputation isn’t taking a hit.

Take the time to read any customer reviews that may be out there, especially ones with a verified purchase check. Even online wholesale marketplaces can list paid reviews to boost their reputation so don’t rely on just one or two great reviews. 

Also, make sure to pay attention to the negative reviews and how the marketplace responds. Do they try to resolve the problem or are they ignoring any customer complaints?

Service Terms

All wholesale marketplaces have terms of service in place. If the marketplace doesn’t have service terms or makes them difficult to find, you probably want to move on to another option. The terms of service usually include some crucial details that can affect how you run your business.

Some marketplaces only allow you to communicate with consumers through their platform, while others let you take the conversations offsite. One method isn’t necessarily better than another, it typically comes down to what works best for you and your business. 

If you want a little more flexibility, look for a marketplace that gives you the option of choosing how you connect with your consumers.

Review the Payment and Fee Structure

Since you’re using the platform to market and sell your products, fees are going to be involved—this is standard, remember, you’re using the marketplace’s platform. 

While this means you’re not responsible for maintaining the site, it does come at a cost. How much you should expect to pay in fees varies depending on the platform. Sometimes, higher fees can give you access to additional features, but not always.

When it comes to payment structures, these can also vary. Some platforms payout for each sale you make, others by the week or even month. Each option has advantages so figure out what works best for your business.

Your Preferences Can Help You Choose the Right Online Wholesale Marketplace

After doing your research, finding the right online wholesale marketplace often comes down to your preferences. You may discover you prefer a platform with higher fees over one that only charges a base rate.

Look at what best fits your business model, including providing access to your target audience. With the right online wholesale marketplace, you can grow your business. 





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