The wholesale business has undergone a boom lately. With the rising adoption of electronic commerce and more and more people feeling comfortable transacting business online, the number of B2B transactions has gone through the roof. Under normal circumstances, this should be a good thing for all the participants in the business as this may mean increased opportunities to do business. However, this is not the case. The boom has brought several problems along with itself. These have been listed below along with the latest cure to them.
The Problem of Plenty: The wholesale business is facing a problem of plenty. With the increase in business prospects, the number of participants has also increased. However, most of them are either inefficient or immoral in their conduct of business. The problem of plenty has therefore become more devastating than the problem of scarcity. Too many choices coupled with no possible way of differentiating between a good choice and a bad choice is wreaking havoc on this business world. If you look at a wholesale directory, its size has increased manifold but the deterioration in quality has made things worse for the average retailer.
The Problem of Credibility: It is also very difficult to base your primary research on the lookout for good China wholesale suppliers on anything. If you are analyzing based on what the wholesale merchants have told you themselves, needless to say it is likely to contain a lot of lies and misinformation. But, with counterparties spread across the country and even across the globe, there is no possible way of identifying the right from the wrong.
The Problem of Research: Market information like that of demand and supply trends, the latest best practices, regulatory environment, taxation and eBay policies change randomly making the market dynamic. A change in these policies could render a product or a wholesale supplier unviable. For instance, if you are a wholesale supplier in China and the UK raises its import duty for your specific product, you are bound to take a hit in your sales and profit. However, retailers are not able to forecast such events due to the lack of information.
Realizing this need, there are networks that have come up as a solution.
These portals act as social networking websites. They provide services that are of great value to the industry. First and foremost, they verify any information that is provided by any member. This reduces a lot of ambiguity and chances of fraud. Retailers and wholesalers can then make objective decisions based on what they see on the website. These portals also provide a means by which customers rate experience with other suppliers and vice versa. This provides even more information to make a decision.
So, instead of dealing with thousands of choices, your choices are reduced to a manageable few and you have the tools to decide among them. Newsletters make it possible to stay in touch with the wholesale community.