After several years of destabilizing the industry, the retail sector is experiencing a complete revitalization driven by innovative B2B e-commerce solutions. With these new tools, brands around the world can continue to reach new customers and sell seamlessly online, while empowering their retail partners to buy the way they want.
The rise of the internet has definitely changed the way consumers search and buy products. In this context, the emergence of e-tailing (electronic retail) has offered brands and retailers the opportunity to sell their products online directly to consumers, potentially eliminating intermediaries. Given that brands now have more opportunities than ever to reach consumers and sell their products, some might think that this marks the end of the online marketplace, wholesalers and B2B e-commerce platforms. Moreover, many are wondering if all these channels will have their place in our new reality. But they would be wrong to think so.
Recent research highlights the benefits of using the Direct Consumer (DTC) model, as well as wholesale partnerships with e-commerce platforms and B2B markets. Although some brands have avoided going the wholesale route, confident in their ability to succeed solely with the DTC sales model because it generates higher margins, however, Coresight Research studies have shown that wholesale provides access to a larger customer base and more efficient marketing. lower margins. Additionally, analysts at BMO Capital Markets found that sales through the DTC model alone do not guarantee higher margins. In fact, among the panel of major clothing brands studied by the BMO, four of the five largest commodity margins were equivalent to sustainable wholesale revenue. According to a BMO report, Gap Inc and American Eagle Outfitters, which invest little in wholesale, have lower commodity margins than PVH and Ralph Lauren, two brands that focus heavily on wholesale as well as direct sales.
“Using a platform to improve your reach and efficiency in your sales organization is paramount to achieving profitable sales,” said Erik Ulin, vice president of marketing at NuORDER, a leading B2B e-commerce platform. In addition, the BMO found that the DTC channel does not guarantee increased sales. In its report, BMO notes that brand sales could remain stable despite the expansion of the DTC model, as it is difficult to scale. Even if it is likely that revenue per unit will increase, that does not mean that the company’s total revenue will do the same. As confirmed by NuORDER data showing a 53% increase in the adoption of B2B e-commerce solutions over the last two years to maintain strong relationships with their retail partners, it is clear that brands with continued growth have continued to invest in wholesale with direct sale. Brands that use the DTC platform, B2B e-commerce platform and wholesale markets can thus attract new customers online and find potential customers in multiple locations, allowing them to expand their customer base with minimal marketing effort. While DTC models are ideal for brand identity, wholesale channels will always play an important role in accessing a larger customer base.
“Leveraging the reach of the market helps to create potential customers and business opportunities in areas and goals that would not otherwise be targeted” – Erik Ulin, Vice President of Marketplaces Market at NuORDER, the leading B2B platform for e-commerce.
Therefore, the importance of a wholesale presence in the development of a brand’s business should not be overlooked. Therefore, a successful and growing business must strive to find a balance between attracting new retail customers and strengthening partnerships with existing customers. Fortunately, several wholesale platforms today offer integrated B2B e-commerce solutions. Most of them specialize in medium and starting prices, such as Ankorstor, NuORDER and Faire. But how can brands determine which one is right for their business? “It’s important to understand how different markets work for different brands,” says Eric Ulin. “Factors such as price level, product type, logistics configuration, distribution sensitivity and the price of the service itself are critical to understanding your identity as a brand and organization in order to find an effective approach. »
Another key aspect to consider when finding a wholesale partner is the degree of control that brands have over the digital space in which customers communicate with their brand and products. Indeed, the ability to display the brand’s vision and visual voice remains the key to success. “How you want the customer to experience the brand is key to our solutions. The virtual exhibition space therefore allows you to design an experience to your liking. It is important to teach the customer who you are as a brand and what your customer is like in order to fit in well and be a good basis for a long-term business relationship “, adds Ulin. At a time when customers have mastered all the intricacies of technology and are looking for self-service opportunities to find new products without the help of resellers, integrated solutions are necessary. NuORDER data found that two-thirds of B2B customers prefer digital tools over physical sales. In response to this, NuORDER has built its solution around its product and order management system. Customers can easily manage and analyze their product portfolio to make better decisions about distribution, sales and future design direction.
“Our market allows you to present your brand to NuORDER’s vast network of customers who search and search for new brands and products on a daily basis,” says Ulin. Through its communication with an active base of 150,000 customers worldwide, NuORDER introduces them to new categories and brands that record an increase in generated potential customers of 30-40%. “For example, a Danish brand
Samsøe Samsøe has created significant accounts in Central Europe through its market exposure and the American beach brand Surfside Supply associated with retail, which has since become its largest account, ”says Ulin. These two brands, which serve different parts of the market, are proof that the NuORDER market is leading to success.
NuORDER stands out from other B2B e-commerce platforms by allowing brands to plan their sales and distribution across all channels. It is vital for brands to embrace integrative solutions and help streamline business processes. NuORDER joined Lightspeed last year to advance its vision of creating a fully integrated B2B2C solution for more connected trade. Brands and resellers can work around one reliable source for product information and order management.
For more information visit NuORDER.com