Wholesalers have been running an entire industry by being the middlemen between manufacturers and consumers. The manufacturers although produces a lot but still gets minimum profits because of the involvement of suppliers and retailers. But now with the help of e-commerce and online stores, the manufacturers can now sell directly.
Take an example of led bracelets, they are so much in demand, but it bags a very little profit to the factory because it is a small product with less profit margin. Led bracelet wholesaler deals with the manufacturers for bulk quantity at low prices which cut short the financial benefits of the makers and they sell it in double and sometimes triple rates. Think about the profits factories can make by selling their products directly to the customers.
Customers tend to purchase from the wholesalers because it is cheaper for them to buy in bulk but the manufacturers can offer even lower rates than the wholesalers and still make a lot more profit. The business model of the factory to wholesaler to the consumer is now evolving rapidly. Makers of the products are now selling directly to the consumers skipping wholesalers entirely.
Online stores don’t even require the hassle of managing a physical store. With the internet, it has become easy to establish a store and maintain sales. Before e-commerce producers didn’t have the power to challenge the monopoly of wholesalers. But now as they can connect to the clients online, there is a variety of options open for them.
Led wear is a growing business nowadays. This provides an opportunity for the makers to try their luck in online sales as well. Because it is comparatively easy to establish yourself in a growing trade than challenging an already time-honoured business. For example, the industry of led pet wear is relatively new, and it is still in the process of creating demand.
The most popular product from this industry are dog collars, and every led dog collar wholesaler is making humongous incomes. A minimal effort and an even small financial investment can bag the manufacturers all these revenues. It will also save the trouble of contacting another industry that is of wholesalers. It keeps products the problem of double transportation. Products can be transported directly from the production units to the consumers now. Less transportation means fewer chances of breakage and less damage.
The industry is changing, but it doesn’t necessarily mean that the wholesalers are out of the league. It merely suggests that the wholesalers need to adopt the changes as soon as possible. It can still be a tremendous earning business but in a different way. Many manufacturers lack the staff or the desire to handle sales even if it’s online. This is again an excellent opportunity for the wholesalers to avail. By managing sales for themselves now what they can do is control that part for the makers instead. It is like setting up an online retail portal.