The 3 Biggest Challenges That Every Wholesaler Faces – and How to Overcome Them

The traditional wholesaler is dying. The future of wholesaling will combine analytics and portfolio construction. Here’s how a typical wholesaler, Robin, will drive business a decade from now. It’s 2020 and Robin logs into the CRM and views 15 new leads from last night.

These are the 4 Biggest Challenges that Wholesale Distributors…

1. Increased Demands from Manufacturers. Manufacturers seem to be increasing their demands with each passing day.
2. Increased Demands from Retailers.
3. Fuel Price Volatility.
4. Employee Safety.

1. Financial pressure from both sides.
2. Shipping products quickly and accurately.
3. Real-Time Inventory Management.
4. Sticking Around.

The industry is under major disruption due to factors ranging from China tariffs, rising shipping costs, the growth of e-commerce, and the increasing desire of manufacturers and retailers to completely bypass the wholesale distribution channel and instead do business directly with each other under a “Direct to Consumer …

Challenges Faced in a Distribution Channel

• Inaccurate Stock Management.
• Manipulation in Trade Schemes.
• Dependency on the Reports.

Here are 5 problems distributors face with their suppliers, and tips on how to not be one of those suppliers that the distributor has problems with.

• Working with suppliers that aren’t educated.
• Suppliers that don’t understand their customers.
• Aggressiveness.
• Price controlling suppliers.
• Bad supplier-sales rep relationships.

A distribution strategy is a method of disseminating goods or services to end-users. Implementing the most efficient distribution method for your business is key to obtaining revenue and retaining customer loyalty. Some companies opt to use multiple distribution methods to adhere to different consumer bases.

Read on for three obstacles facing nearly all distributors and how to help address them with modern technology.

• Changing Relationships. All businesses must remain competitive while increasing efficiency – or simply put, all of us are trying to do more with less.
• Employee Retention.
• Customer Expectations.

The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves.

There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels.

Types of Distribution Channels

• Direct Channel or Zero-level Channel (Manufacturer to Customer)
• Indirect Channels (Selling Through Intermediaries)
• Dual Distribution.
• Distribution Channels for Services.
• The Internet as a Distribution Channel.
• Market Characteristics.
• Product Characteristics.
• Competition Characteristics.

Types of Distribution Channels – 4 Important Types: Direct Sale, Sale through Retailer, Wholesaler, Agent

• Direct Sale:
• Sale through Retailer:
• Sale through Wholesaler:
• Sale through Agent:
• Intensive, Selective and Exclusive Distribution:

A zero level channel, commonly known as direct marketing channel has no intermediary levels. In this channel framework manufacturer sells merchandise directly to customers. An example of a zero level channel would be a factory outlet store.

Channel members add value to both producers and customers. They match the time, place, and possession gap existed between producers and consumers. Channel members gather information about consumers and producers to make products available in the market. Intermediaries help to match supply and demand.

These are the 8 most important distribution channels to know:

1. Direct sales.
2. Retailer.
3. Intensive distribution.
4. Selective distribution.
5. Exclusive distribution.
6. Dual distribution.
7. Wholesaler.
8. Channel partners or value-added resellers.

To choose the right channels, you will need to:

• Consider your competitors. What methods are your competitors using?
• Examine costs and benefits. After deciding on a method of distribution, creating the support systems that go with it is time-consuming and expensive.
• Rank your options.
• Have a plan for growth.

The Global Milk Chocolate Market – Forecast to 2024: Supermarkets & Hypermarkets Dominate the Distribution Channels – ResearchAndMarkets.com

• Supermarkets and Hypermarkets.
• Convenience Stores.
• Non-Grocery Retailers.
• Others.

Growth in e-commerce as a lucrative sales channel is trending the global broccoli extract market. E-commerce has become a convenient and accessible channel for the sale of products.

5 How should your product be distributed?

1. direct to consumers, which may be a suitable option for smaller processors covering small areas;
2. to all suitable retailers in an area;
3. to supermarkets, if they find the product acceptable and sufficient quantities can be delivered;
4. to wholesalers, suitable for larger processors;

ADVERTISEMENTS: Some of the factors to consider while selecting channels of distribution are as follows: (i) Product (ii) Market (iii) Middlemen (iv) Company (v) Marketing Environment (vi) Competitors (vii) Customer Characteristics (viii) Channel Compensation.