We have been a few months since our beta launch in April and our collection is now 300 inspiring brands strong. Thousands of retailers are actively using the platform, so we cannot wait for the coming months.
We naturally speak with all suppliers, but also with a large proportion of our retailers; This is because we take feedback seriously and want to establish the best wholesale platform in the industry. In addition to the information from all these valuable conversations, we have extracted interesting data from our statistics and a retailer survey * that we would like to share to ensure that everyone can be successful on our platform
It all starts with experience. Our retailers survey showed that 55% of retailers decided to make a purchase based on good product descriptions and photos. The first step to success is therefore to place your brand as representative as possible within the Marketplace. Provide a sharp description, well-written content and beautiful photography. No matter how beautiful and good your product is, if photography is not optimal, a retailer will be less inclined to purchase a product. This applies to retailers as well as to normal consumers. Unconsciously, people will always choose a product that is carefully presented with good proportions, lighting and color.
In addition, the header image and the tile image in the Marketplace are important to ultimately create an incentive for a retailer to view your store. The more tasteful the atmosphere, the more traction you get to and within your storefront.
In addition, it is important that you make it as easy as possible for the retailer. You do this by categorizing the products as well as possible and by using the features that Orderchamp offers you in the field of grouping attributes. For example, it is better not to create a separate product for each product variant. That way you keep it organized and as simple as possible.
As a supplier, you naturally naturally tend to only sell your products in large volumes. However, for many (online) retailers it is a bottleneck that makes them less inclined to make a purchase.
As mentioned, we have a lot of contact with independent retailers in the Netherlands & Belgium. We are often told that a high minimum order amount is a deterrent. Not because the retailer cannot afford it, but more often because they are unable to estimate whether a product is going to hit their target group at all. The fear of a surplus of unsaleable stock generally wins over almost any other item to consider a major purchase.
The fear of a surplus of unsaleable stock generally wins over almost any other item to consider a major purchase.
What we also observe is that the wholesale market is on the move. Small independent retailers are very different in entrepreneurship than, for example, a large traditional party. The modern retailer has a great need for speed and flexibility and behaves almost like a traditional consumer online.
We are therefore seeing a shift in the area of traditional purchasing periods. In our retailer survey, for example, we see that 83% of respondents indicate that they do shopping all year round, and 50% of them also add new brands. To be able to serve these customers well, it requires a bit more flexibility than you may be used to. With Orderchamp we have arranged the platform in such a way that this is made easier for you.
In addition, there is also a psychological aspect that plays a role. What we mainly see in the statistics is that affiliated suppliers with a low minimum order amount usually receive orders that are far above the set minimum. A retailer often orders up to 300% more than the specified minimum order amount. It therefore seems that a low minimum order amount gives a form of trust in which people feel less forced and therefore move on to a larger purchase.
Ultimately, the goal of Orderchamp as B2B software and Wholesale Marketplace is to facilitate as many trade relationships as possible. It is a given that you get an order faster with a lower minimum order amount, but more importantly it will eventually result in multiple orders. This applies to both your own relationships that work with Orderchamp, but especially to your new relationships.
Ultimately, the goal of Orderchamp as B2B software and Wholesale Marketplace is to facilitate as many trade relationships as possible.
A first order is often an attempt for retailers to see if a) the chosen supplier delivers adequately at all, b) whether the products meet the quality requirements of the retailer and c) whether the products are easily salable within the current clientele (or even introduces new clients). All points in this series are important to ultimately build a good trade relationship that can result in many orders.
You do not have all aspects under control, but make sure that you respond quickly and adequately to questions, be transparent about the delivery time and communicate when, for example, the delivery time runs out. Via the message center in Orderchamp we try to facilitate this as well as possible and we will continue to expand this functionality.
Maybe you have been in the business for years, or you may have just started. We are in contact with many different brands and see that everyone deals with it differently. We recommend that you at least investigate the correct suggested retail price. Make sure you understand what prices are common within your (sub) category to ensure that the ultimate consumer can be sufficiently stimulated to make a purchase. This ensures more purchase from the retailer, so also more purchase from you as a supplier.
Even if you still sell such unique products, you should always take into account your 'competition', certainly within the wholesale industry, because a retailer is unlikely to offer the same type of product to its consumers twice. As a supplier, you cannot therefore pass on disproportionately high recommended prices to retailers. And this may speak for itself, but it is certainly not the intention that you offer your products cheaper to consumers - whether or not at a consumer marketplace such as Bol.com - than the recommended MSRP that you more or less dedicate to your retailers. This way you put your own retailers out of the game and that is of course not beneficial for anyone.
In addition to a low entry threshold and a fair suggested retail price, it is ultimately the margin of a product that determines whether it will be profitable for a retailer to continue buying it. Although the retailer is satisfied on all fronts, ultimately it is largely the margin that determines whether a product is interesting to continue to purchase.
With little margin, the retailer will soon have to look for a more profitable alternative with perhaps another supplier. It is therefore essential in the long term to realize a competitive margin in order to ultimately generate volume.
We recommend that you at least play with the margin to see how you can optimize sales as well as possible. More sales compared to a lower margin can sometimes mean more sales. The wholesale price is therefore essential for your success. To help suppliers with this, we are busy setting up various tools within the platform in order to ultimately calculate a successful margin.
Finally; we will continue to develop to facilitate 'traditional wholesale' online, but we also focus on the new generation where modern e-commerce standards cannot be missed. This ensures that we can serve the market as broadly as possible and that all segments can benefit from each other.
* We have already included the first results from the retailer survey. Extensive (analyzed) results will be discussed in a follow-up series.