How to Sell wholesale as an African brand is a business strategy that has largely gone unnoticed for many years but is gradually gaining interest in recent years. One cannot help but notice its unique advantages, such as giving you control over how you purchase, modify, and sell your products. Through brand recognition, it also fosters customer loyalty and retention.
Because of technological advancements, one does not need to own a physical store before venturing into wholesale; it is now a type of eCommerce business, which means you can set up a wholesale store from anywhere using your computer. When you understand the strategy and master the principles that surround it, it can be quite profitable.
Launching your Wholesale store
Starting a wholesale store may appear difficult or excruciating, but believe it or not, it is not rocket science if certain guidelines are followed. A similar guide may not work for everyone, but here are some tried-and-true steps to take before venturing into wholesale:
Evaluate Your product Choice
Choosing a product for your wholesale store is very important as it determines the Retailers you intend to target, Also, there are so many products to choose from and you might get confused on which to choose, so it is essential that you narrow down what you intend to sell. It is best to focus on a specific product before venturing into multiple products, that way, you can become fully grounded and understand how the market works
Record shows that as an African Brand, selling wholesale to the international market requires that you focus on unique African products that are quite rare in their locations. So lookout for a specific product in your country that can capture the attention of international Retailers.
Look out for these product categories when choosing your product:
Home décor Clothing/Accessories Beauty/skincare products Food/Spices
Always have it in mind that your target Retailers are more thrilled by the authentic nature of your product and how they can get them sold out to consumers easily, so pick a product that you believe can drive sales.
Know Your Audience
As an African Brand, you want to carve out a niche for yourself despite the fact that you have many competitors. First, conduct competitor research and select a niche in which you will excel. No matter how many competitors you have, there will always be something they are not doing correctly that you can capitalize on. Make it a habit to keep an eye out for their ratings and use their weakest point to create your own audience.
There are no limitations to reaching your target audience in today’s market; using the right platform for your store can provide you with all the Retailers you require.
Choose An Online Marketplace
The internet has made eCommerce quite appealing; no longer do you need a physical store to sell wholesale to retailers or go around announcing your products by word of mouth. With a single click, you can get your products to Retailers in different locations.
Even if the internet has become mainstream, it is crucial that you choose a marketplace that will assist your brand in generating the necessary buzz while you concentrate on crafting your products. Choose a marketplace that understands your product, is willing to go the extra mile to promote your brand, and has a large network of retailers, buyers, and stores. In other words, avoid using an online platform that will cause your store to become dormant.
craftmerce is a highly recommended marketplace because it caters to African brands and is currently working on a solution to help African products reach a global audience. To setup a store on the platform is quite easy and compared to other marketplaces, it does not charge a membership fee just a 15% commission on every sale made.
Determine Your Wholesale Pricing
Make it s collaborative effort to set an wholesale pricing that works for both you and the Retailers who intend to purchase your product. Most wholesale merchants tends to overlook or have little to no knowledge on setting a wholesale price that best works for them and buyers.
The most common price point for wholesale is 50% off your retail prices. So if you sell a $20 product to retail, online customers or at a craft show, then you would sell that same item for $10 to the store buyer. This is the standard expectation from brick and mortar store owners and buyers and this is what you will encounter most often as you get into selling wholesale. So usually the types of stores that you would mostly be dealing with are gift stores, small businesses and mom and pop type stores.
How Profitable is Wholesale To An African Brand
Most merchants are so accustomed to making a single sale to their customers that they fail to see the big picture. Selling wholesale has a significant profit margin and an advantage over retail.
Because wholesaling entails large purchases by large Retailers, profits are high. Retailers have a larger number of customers because they serve individual, disposed final consumers, whereas wholesalers have a smaller, more concentrated customer base with high return on revenue.