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Why B2B Wholesale Business Ventures Fail

February 18, 2012 | Comments: 0 | Views: 189

Before the start of any wholesale business, choosing the right business niche is the hardest thing to do. Seeking advice from others regarding your wholesale business can sometimes be really confusing. Consult 10 different wholesale traders about the perfect business niche and you will get ten different ideas. Therefore, you are the best person to decide the most appropriate wholesale business niche.

Why people fail?

Most of the times it happens that people choose their wholesale business niche incorrectly because prior to launch, they fail to determine their online business competition and are thus unable to find the reliable resources to exploit the global platform of the internet. At the same time, people are unable to decide which business model they should prefer.

Generally, it is suggested that newbie wholesale traders should sell their wholesale products or services to other businesses rather than directly catering the end customers. There are certain benefits for wholesale traders to venture into B2B (Business to Business) model as compared to run a B2C (Business to Consumer) company.

Considerations while running a product based B2B venture:

If you are not a manufacturer, you will have to arrange a steady source to purchase wholesale products you wish to sell. You must find out if you have enough finances to make all the transactions or the purchase will create a liability from day one. Being a start-up entrepreneur low budget, less reliable resources, poor negotiation skills, traditional market analysing tools, and less number of customers can altogether increase the chances of failure. If you are dealing in a commodity (a product that everyone else offers) then it becomes really difficult to differentiate your offers from the rest and win the competition. While dealing in a wholesale product category that is not different from the rest, the best way to sell it is to offer the best services to support the product. For instance, you can offer a live support through your customer services department to sort out the related issues, deliver your product to customers as quickly as you can, offer your product at cheaper rates as compared to your competitor but do make sure to maintain the quality of your product. Not everyone can offer the above-mentioned services and ultimately they will be out of the competition. Make your business flexible enough to adapt to the market needs and market changes. Do not rely on a single resource for your complete stocks. Always keep multiple resources in your hands, as it is necessary to generate more or steady revenue. You can also invest in multiple products so that you can enjoy revenue from different investments. Start-up wholesale entrepreneurs have to be quick thinkers so that they can take decisions quickly and improvise accordingly.

These are few general tips that wholesale traders must consider while starting and running a product based wholesale B2B venture. These tips may appear ordinary to many but the excitement of starting a new business can easily let simple thinks slip out of your checklist. Therefore, make sure to consider and implement them thoroughly.

William King is the director of Wholesale Products, Wholesale Suppliers and UK wholesale supplies. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Source: EzineArticles
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