What are the Main Challenges Faced by Wholesale Companies?


Friday, October 02, 2020 12.55PM / Sponsored Post by Anesley Liam / Header Image Credit: College Diploma


The goal of every company is to achieve market recognition and generate profit. This could not be different with businesses that conduct wholesale sales.


The wholesale distributor is gaining more and more importance in the market. However, to achieve positive results, a series of measures must be adopted throughout the sales process. It is necessary to have actions that range from marketing and advertising campaigns, to launching and delivering orders, for example.


Wholesale companies have their challenges. Let's present some.


Less customer volume than retail

Building customer loyalty is an essential step for business success. However, maintaining customer retention is only one of the obstacles for wholesale trade. Generally, a company that sells wholesale covers a smaller number of customers, but its average ticket of purchases made and the volume of orders placed are usually much higher than those ventures that chose to sell at retail. On the other hand, the retail trade has a large number of customers, however, the average ticket is much lower. The big challenge is to win more customers within this more restricted market and also to keep those who are already on the client list.


Longer sales cycle

The sales cycle of wholesale companies is much longer when compared to retailers. In this modality, there is the element of impulse and emotion that simplify the procedure. In wholesale, the deal is usually made between two companies. Because of this, there is greater seriousness and importance in that purchase, since it involves higher values ​​and that commit part of the business budget. Thus, the buyer must be sure of the transaction to be carried out and must clearly and fairly justify the reason for that acquisition. Often, approval from higher sectors is required to make the purchase and demonstrate the benefits it will bring to the company.


Providing Personalized Service

As we have already said, the customers of a wholesale company are usually another company. The person responsible for the final decision on the purchase of new products has a great role and a lot of responsibility, since it is his duty to influence a large part of the company's financial flow. This factor means that he receives personalized treatment and exclusive service. Thus, as the transaction is differentiated, the guidelines must be as detailed as possible. Clear and objective information about the products that are purchased must be provided and a support team, for example, should be provided. Thus, the wholesale company must have a good orientation to be ready to provide all this differentiated experience, which, many times, may not happen.


Predictable and consistency in relationships

The relationships established between wholesale companies and other client companies last much longer if compared to those established with final consumers. The consistency in commercial relations between company and consumers guarantees the elaboration of a more concrete financial planning. In other words, the company closes its balance sheet already knowing that it will probably be able to count on that customer's purchases at a certain moment. In this way, wholesale companies (or virtual stores of the type Business to Business) have a more loyal audience.


Minimum number of orders to be placed

Online wholesale companies can impose a minimum order limit, especially when the products offered are of low value. Thus, as the profit margin also tends to be lower, it will be necessary to adopt measures that make this purchase profitable, which is to bet on the sale of a large quantity of items at once. On the other hand, if the value of the goods available is high, there will be no latent need to impose a minimum limit on products to be sold in a single purchase.


Difficulty find specialized labor

Qualified labor is contested by companies, so it is rare to see good professionals available on the market. The technology has been used as an alternative to solve this lack of specialized team in the wholesale distributor market.

Purchasing Complexity

As the sales stages of these companies are longer, it demands more organization and preparation, in order to be able to serve all consumers. Thus, it is true to say that there is greater complexity in purchases.


Each form of selling has its own character, and so is wholesale selling. However, if executed properly, this type of sale has enormous potential, even surpassing other types of sales.


Proshare Nigeria Pvt. Ltd.

Related News

1.      Oando Joins Business Leaders to Pledge Support For Multilateralism as The United Nations Turns 75

2.     PCL Partners CBN to Launch COOL 2.0 Platform to Strengthen Leadership in Digital Learning

3.     BUA Donates Additional N350million to CACOVID

4.     Lafarge Webinar: Stakeholders Agree That Data Will Be Key to 2030 SDGs Achievements

5.     2020 PSRG-Richardson HSSE Forum to Hold on September 16th 2020

6.     Nigerian Bottling Company Installs High-Speed, Canning Line At Its Ikeja Plant

7.     Oando Hosts Webinar on Revolution Based Change to Achieve Inclusive Growth

8.     Lafarge Webinar Series: Stakeholders Call for Tech Leverage and Education To Achieve SDGs

9.     COVID-19: CBN, Bankers' Committee to Support Airlines, Media

10.  Lafarge Sustainability Webinar: Stakeholders Call For Collaboration To Achieve SDGs

11.   Shoprite Discontinues Nigerian Operations, to Initiate a Formal Process

DISCLOSURE: This is a sponsored content as indicated in the source above; and is not a recommendation to buy or sell securities or the products mentioned therein. Proshare Content and their owners, managers, employees, and assigns (collectively the "Company") are bound to comply with in-house governance rules requiring this necessary disclosure to ensure that readers, subscribers and consumers understand that the content is advertising and should not take it as an unbiased reporting on our part. All T&C applies.


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News