The 13 Types of Wholesale Strategies You Should Know

The numerous techniques and strategies enterprises use to sell their goods or services to other industries are called wholesale strategies. Targeting bulk buyers, distributors, and retailers aims to maximize profits and increase sales volume. This article will examine 13 different types of wholesale strategies and why they are essential.

The 13 Types That You Need to Know

Direct Sales

This type involves selling products directly to other businesses and industries. This approach is ideal for businesses that have established relationships with buyers or have a strong brand presence where they do not need to spend a big amount of advertising to sell. 

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Distributors

Distributors are intermediaries that buy products from manufacturers and sell them to retailers or end-users. This strategy is ideal for businesses that have limited resources or lack the expertise to manage a sales force that you can like direct sales.

Value-Added Resellers (Vars)

Value-Added Resellers (VARs) are businesses that add value to products or services by providing customized solutions, technical support, and training. This strategy is ideal for companies that sell complex products or services that require specialized knowledge like in the IT industry.

Retail Chains

Retail chains are businesses that have multiple retail locations such as those restaurants, hotels, and more. This strategy is ideal for organizations that have established brand recognition and a broad customer base like McDonalds.

Brokers

Brokers are intermediaries that help businesses find buyers for their products or services. This approach is ideal for enterprises that are new to the market or lack the resources to manage a sales force however you often see brokers in the Real Estate industry and car selling.

Drop Shipping

Drop shipping is a retail fulfillment method where the seller does not keep products in stock but instead transfers customer orders and shipment details to either the manufacturer, a wholesaler, or another retailer, who then ships the goods directly to the customer. For example, customers will order bulk cigarette lighters, drop shippers will then relay it to a wholesaler and they will directly send the needed items to the customers. This strategy is ideal for businesses that do not want to handle inventory or shipping.

Consignment

Consignment is a retail agreement where the retailer pays the supplier only for the products that are sold. This type of strategy is ideal for businesses that want to reduce their inventory risk.

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Private Labeling

Private labeling requires creating a product and then selling it under another company’s brand. This strategy is ideal for firms that want to establish their brand presence without investing in much-complicated product development.

Exporting

Exporting involves selling products to customers in other countries. This approach is perfect for firms that want to expand their customer base and tap into new markets.

Joint Ventures

Joint ventures involve partnering with another business to sell products or services. It is great for businesses that want to leverage the strengths of another company to increase sales.

Licensing

Licensing involves allowing another business to use your intellectual property, such as a trademark or patent, in exchange for a fee. You often see this type from a firm that has established intellectual property that can be monetized.

Franchising

Franchising involves allowing other businesses to use your business model and brand in exchange for a fee. You often see this type in media, fast food, and even transportation. 

marketing strategies

Strategic Alliances

Strategic alliances involve partnering with another business to share resources and expertise to achieve common goals. It is great for firms that want to leverage the strengths of another company to achieve shared objectives.

Also Read: 8 Ways To Use An LMS For Effective Sales Training 

The Bottom Line

Businesses can choose the best wholesale strategy for their needs and objectives by knowing the 13 wholesale strategies we have written about in this article. These are one of the stepping stones to how you can make your business boom in its industry. 

Jagrit Arora
Jagrit Arora

A student who is dedicated for his work. I love to read novels and watch informational videos for my growth. As you know books can give you tons of knowledge but you need to mean it.

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