{"id":12344,"date":"2017-06-28T08:00:16","date_gmt":"2017-06-28T15:00:16","guid":{"rendered":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/selling-strategies-for-wholesalers-what-to-do-when-manufacturers-sell-direct"},"modified":"2023-05-26T05:42:50","modified_gmt":"2023-05-26T12:42:50","slug":"strategies-for-wholesalers-manufacturers-sell-direct","status":"publish","type":"post","link":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/strategies-for-wholesalers-manufacturers-sell-direct\/","title":{"rendered":"Selling Strategies for Wholesalers When Manufacturers Sell Direct"},"content":{"rendered":"

Wholesalers have always been a cornerstone of the B2B marketplace. Manufacturers made products and delivered them to wholesalers. Wholesalers built a business serving to retailers. The internet has changed the B2B marketplace and this is further showcased by manufacturers selling direct. To tackle this shifting market, here are a few strategies wholesalers can deploy.<\/span><\/p>\n

Why Manufacturers Are Selling Direct<\/h2>\n

Chinese military legend Sun Tzu counsels in\u00a0<\/span>The Art of War<\/span><\/a>, \u201cIf you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat.\u201d Competing against direct manufacturer sales isn\u2019t exactly war, but the statement holds true. Wholesalers need to understand why manufacturers are selling direct and strategize accordingly.<\/span><\/p>\n

Manufacturers are under intense pressure from shareholders to increase value in any manner possible. One of the first solutions is to cut costs by cutting out the middle-man, or wholesalers in this case.<\/span><\/p>\n

eCommerce for manufacturing<\/a> may also move to direct sales to build their brand. Direct sales give manufacturers control of the entire brand experience. From marketing to order fulfillment, they are in control of their customers experience.<\/span><\/p>\n

Another reason for manufacturer direct sales is to build customer data. By selling direct, manufacturers develop a vast repository of customer data and contact information. This data can be leveraged to support new product development ideas and other marketing promotions and campaigns.<\/span><\/p>\n

Manufacturers selling direct shouldn\u2019t discourage wholesalers. In fact, it should be an opportune time for wholesalers to re-assess their selling strategies. Below are few selling strategies wholesalers can use to help grow the business.<\/span><\/p>\n

Strategies for Wholesalers # 1 \u2013 Deliver Exceptional Customer Experience<\/h3>\n

Your first strategy should be to provide a superior customer experience across all channels. Deploy an e-commerce site that delivers a consistent experience across all channels. Whether your customer is on the laptop, desktop, mobile site or calling your business over phone, be sure to deliver incomparable service. \u00a0And that\u2019s just the start.<\/span><\/p>\n

Capitalize on the relationships you have built with your customers. Research from\u00a0<\/span>Forrester Consulting<\/span><\/a> shows that 53% of B2B buyers list \u201cexcellent customer service and post purchase support\u201d as one of their top 5 reasons for making a purchase. A manufacturer that is new to direct sales will have a difficult time meeting these expectations. Remember, manufacturers have built their business based on larger volumes. Wholesalers, on the other hand, are already perfectly positioned to proficiently handle smaller scale sales and returns.<\/span><\/p>\n

B2B buyers have stated \u201ctransparent prices and product details\u201d are the top two factor that determine loyalty. This means providing a personalized customer experience (like custom catalogs or custom pricing) accompanied with unrivaled service can truly differentiate your business from competitors. Show customers you understand their needs and they will respond positively.<\/span><\/p>\n

Strategies for Wholesalers # 2 \u2013 Build Your Own Brand<\/h3>\n

If manufacturers have switched to direct sales to better control their brand, focus on building <\/span>your <\/b>brand. Offer what no manufacturer can: a selection of products across brand lines. With one purchase, your buyer can purchase multiple products but be sure <\/span>your brand<\/b> is clearly associated with the sale. Offering multiple brands that represent different price points is another differentiator wholesalers have over manufacturers. In addition, pick and choose products wisely. \u00a0Offer products with higher margins and let the manufacturer sell the low margin items.<\/span><\/p>\n

Become the destination for your industry and expand into new markets. Share your extensive product knowledge through content sharing and build upon your authority. Use the appropriate social media networks to build an image consistent with your brand values, voice, and look. Use <\/span>social presence to drive traffic<\/span><\/a> to your website and cement your brand\u2019s reputation.<\/span><\/p>\n

Today\u2019s B2B buyers have many of the same expectations as B2C buyers. They want quick shipping and hassle-free returns. Become experts in LTL (less than truckload) shipping, parcel shipping, and express delivery. Many manufacturers selling direct have a difficult time with packaging and shipping individual products as they traditionally deal with larger shipments and crates. This can be a differentiator for your business. Be sure your brand offers deliveries that support:<\/span><\/p>\n