When you’re trying to grow a business and you’re looking for ways to increase your profits, wholesale delivery might not be the first thing you think of, but it can be an extremely effective way to grow your margins. Logistics costs can consume nearly 10 percent of your sales revenue, Establish Davis data shows. By increasing the efficiency of your shipping process, wholesale delivery can cut your expenses, leaving more of your revenue left over as profits.
But in order to make wholesale shipping work for you, there are some important best practices you’ll need to follow as well as some missteps to steer clear of. Here’s a look at the business case for wholesale delivery, how to get started using this logistics tactic and what mistakes to avoid.
Why Wholesale Delivery Makes Sense
The most fundamental reason to use wholesale shipping is to reduce costs. Suppliers may offer as much as half off or more to customers who buy wholesales. For instance, Lowe’s offers bulk discounts of 5 to 50 percent on select products. Wholesale delivery can also reduce your shipping costs. For example, the FedEx More Savings Program offers customers who ship frequently discounts of 32 percent, with additional discount rewards for exceptionally heavy shipping volume.
Wholesale delivery also increases your efficiency by providing you with a more reliable supply chain. Because you represent repeat business for your wholesaler, they will tend to give you preferred treatment. When there are shipping shortages or delays, they will be inclined to prioritize your business over that of buyers who purchase in smaller volume.
Wholesale delivery can afford you other advantages as well. For instance, seal manufacturer Apple Rubber provides custom o-rings and seals made out of specialized materials such as Nitrile, Viton and EPDM. Customers who buy o-rings wholesale directly from Apple Rubber have a greater opportunity to request customized specifications and to receive customer service support firsthand from the manufacturer than if they were going through a third party.
How to Get Started With Wholesale Delivery
If you’re convinced wholesale delivery is a good option for your business, the first step is to start researching potential suppliers. You’ll want to compare prices, as well as available materials and specifications, quality, and customer service. Shop around and get quotes. To research customer service, consider factors such as how quickly a company responds to your calls and email messages, whether they offer guarantees, and reviews from other customers.
Once you find a supplier you like, communication becomes a key to effective wholesale shipping. Talk to your supplier about your product and shipping needs. If they’re experienced in your industry, they may have ideas about ways you can cut costs with alternative materials or shipping methods. Make sure you provide precise specifications and measurements when ordering products so that your supplier is clear on exactly what you want.
Wholesale Delivery Errors to Avoid
One of the most common mistakes when ordering wholesale is to place an order without first verifying that the part you ordered is exactly what you need. This mistake can lead to wasted time and money, shipping delays and inventory problems. To prevent this, always order a sample before placing a wholesale order.
Another frequent mistake is failing to give your supplier enough lead time. Your supplier probably handles multiple clients, which can create shortages if more than one client needs a large order at the same time. The more lead time you can give your supplier, the better your chances of receiving the items you need on time.
A third common mistake is failing to pay your supplier promptly. This is the surest way to damage your relationship with your supplier. Always prioritize timely payments. If an emergency does arise and you are unable to pay on time, let your supplier know as soon as possible, and make arrangements to pay as soon as you can.
Wholesale delivery can be an effective way to cut your costs, improve your shipping efficiency, and build reliable long-term relationships with suppliers. Comparing prices and customer service and communicating clearly with your supplier are some keys to effective wholesale delivery. Avoiding common mistakes such as placing an order without trying a sample will help ensure that your wholesale delivery experience goes smoothly so that you can enjoy lower logistics costs.
