We’re living in an increasingly digital world, and every industry and business needs to embrace that.
Technology is rife in every part of our lives, offering convenience, efficiency and enhancing our experiences – therefore, it makes sense that wholesalers’ customers will be looking for something similar in their professional lives.
Having an eCommerce platform to process online transactions, for example, has proved to be a valuable additional revenue stream for wholesalers for several years, and those figures speak for themselves.
But it’s about so much more than that: digital provides warehouse and logistical efficiencies, can help to promote your business and cut costs from across your operation. Digital is a must-have nowadays.
A lot of wholesalers are already a long way down the track in their digital evolution, while several others are still making those first tentative steps, but make no mistake that this expansion is happening across the entire spectrum of the sector.
“Based on the conversations we’re having and trends we’re witnessing at b2b.store, the digital expansion is going to become even more diverse, with wholesalers taking different approaches to their development, comments Rob Mannion, b2b.store CEO and founder. “This has never been truer than with our B2B WhatsApp module, which is gaining a lot of traction from wholesalers, but being used in different ways depending on each business’s specific needs.”
The data opportunity is undoubtedly one of the biggest in the digital space because online tools are constantly gathering usage figures that can provide valuable insight when applied properly.
The data b2b.store’s eCommerce platforms collect was a key part of the insight Lumina Intelligence used in their 2023 Wholesale Online Report and shows the power that wholesalers have at their fingertips.
Data can mean different things to all, though, and the popularity of the split testing capability within our B2B Digital Advertising module shows that. Suppliers, wholesalers and buying groups want to understand what digital excellence looks like to sweat their assets, and the sharing of data in that space is a great way to improve approaches across the board.
“Wholesalers should always be looking at what’s big in the consumer world because it’s the best indication of what works for people – and regardless of which channel you work in, you’re selling to people,” adds Mannion. “It’s the basis of why our B2B WhatsApp solution is so powerful because we know that 80% of phone users in the UK say WhatsApp is their preferred communication channel with sky-high engagement stats, so it’s the perfect place for a B2B adaptation, as we have with Bestway and other wholesalers. Often, spotting the consumer trends isn’t the hard part, it’s understanding how it can be applied into this sector.”
One of b2b.store’s latest launches is to make its eCommerce platforms ‘open’, which means they can now be browsed by non-customers and will appear in Google searches. Research has found that retailer and foodservice outlet owners want this function to check out products, particularly NPD, and will be a great customer recruitment tool, so the company has developed a solution in accordance with that.
“The most important advice we have for wholesalers is to constantly evaluate how B2B technology is working – and not working – in their business,” says Mannion. “Understanding the services on the market and how they could streamline your operation and make you more money is crucial to the long-term success of any business in this sector. Don’t stand still.”
CEO and founder of Adventoris, James Clarkson, comments: “The main benefit of wholesalers adopting digital methods is the unbeatable customer experience and improved connection with customers, something that many in the sector have struggled with, especially following the shift in how people do business in a post-pandemic world. Through digitisation, customers can access your brand 24/7, whenever they need to, helping to foster positive client relationships.”
Digitisation can also lead to an increase in revenue streams by presenting more accurate and precise information to a wider audience, helping to grow your brand’s visibility as well.
Implementing digitisation can help secure your data in terms of any unforeseen incidents, keeping your business operational should the worst happen.
“At Adventoris, we see clients regularly reporting that our SwiftCloud platform saves their customers over 50% in ordering time, while seeing basket sales increase by 15%,” adds Clarkson. “As well as offering customers a seamless experience when trading with your brand, more and more wholesalers are adopting digital technology, meaning those not prepared to adapt could be left behind. Our recent survey told us that 80% of wholesalers have already adopted digitisation, a trend that we only expect to rise over the next couple of years.”
Adventoris is seeing more and more wholesalers looking to expand their digital offering, whether it be streamlining their ordering process via digitisation, taking a more digital route in terms of communicating with customers or even harnessing and analysing data digitally. This trend is expected to continue as consumer behaviour continues to shift towards a more digital-led approach.”
“There absolutely is an opportunity for wholesalers to improve data sharing though digitisation, says Clarkson. “Digitisation not only offers the opportunity to increase the accuracy of data, but also to improve how it can be displayed. Data can be circulated much more easily through digital methods, such as through digital reports sent via email.”
For the first time, e-commerce has now surpassed in-person as the most effective channel for B2B buyers (McKinsey). This is a vital shift in the industry that wholesalers must take into consideration when reviewing their current sales processes.
Adventoris’ star product is SwiftCloud, a customisable B2B mobile app platform designed specifically for wholesalers that enables their customers to see products, communicate with the company and make orders 24/7.
In addition to the mobile app, Adventoris also offers a Web Portal and Sales Manager App, which have both been really popular in recent months.
The company has seen particular interest in its Push Notifications module, with 95% of our new clients choosing to utilise the module.
Gary Hawkesford, Sales Manager, BrightBridge, comments: “There is barely a sector that digitisation hasn’t permeated, and wholesale distribution is definitely one that benefits. In a challenging environment where both customer expectations and price competition are rising, wholesalers can benefit from technology that facilitates product and pricing transparency and optimises inventory to ensure there is enough product to meet demand, without tying up capital in excess stock. This is particularly important as the wholesale space is subject to competition from entrants like Amazon – which can offer a sophisticated infrastructure – so wholesalers must either increase their digital offering or suffer the consequences.”
Digitisation also offers easy omnichannel engagement that brings all customers and business activities together so that wholesalers can execute the direct selling strategies deployed in the B2C space. This is of growing importance as B2B customers are used to B2C experiences in their own lives and have come to expect the same standards in their business lives.
Efficiency is also a key benefit: traditional and manual processes are fraught with error and are extremely time consuming. At a time when the whole world is going digital, any organisation that does not increase its digital offering will see efficiency decline exponentially along with competitive ability.
“In short, it is less about the benefits of increasing their digital offering and more about the consequences of not increasing it, that wholesalers should be considering,” adds Hawkesford. “Wholesalers must expand their digital offering in order to survive. Tech-savvy customers expect the organisations they work with to be tech-savvy. Competition is everywhere and just a click away, so there is no incentive for customers to stick with wholesalers who can’t offer them the same experiences that competitors can.”
With cloud-based solutions being accessible to organisations of all sizes – with no hardware costs, no need for servers and offering flexible subscription with the opportunity to add a variety of relevant sector apps when needed – there should be no barrier to implementation of digitisation or expansion of it. Solutions such as NetSuite allow flexibility and agility that wholesalers need in a rapidly evolving business landscape, and as they are cloud-based, all updates are automatic and included, so users need not worry about upgrade costs further down the line. When this can be accessed from anywhere and from any device, there is no real reason why wholesalers would not implement or expand their digital offering.
Digitisation facilitates sharing of data both for internal business processes, and also to drive customer engagement and loyalty. Digitisation to garner data that can be shared, on key metrics like Cost of Goods Sold and Picking Accuracy, can drive efficiencies. While data shared in real-time on the organisation’s operational and financial performance will enable informed decision-making. The sharing of digitised data will reduce errors that can occur in manual entry, negating resulting problems and again, creating efficiencies by removing entry duplication, as data records can be shared across functions.
On a customer engagement level, when data is shared across everyone in the organisation that interfaces with them, whether they’re in sales or customer service, a unified approach can really drive customer satisfaction. When relevant information such as preferences, previous interactions and transactions can be accessed by operatives interacting via varying customer touchpoints, the customer experience is smooth and satisfaction high. Furthermore, the opportunities for upselling and cross-selling that unified data provides are infinite.
“One of the key consumer trends is the penchant for returning goods,” says Hawkesford. “This has increased significantly since the pandemic. It is now commonplace for customers to order several items to get the right fit, return an item after making an impulse purchase, and order multiple items for choice, with a view to returning some. Returns are a growing issue – around 30 per cent of items ordered online are returned, compared with around just 10 per cent for those bought in store – so wholesalers should ensure they are geared up to manage returns alongside their inbounds goods. This means technology that can help them track inventory in real-time, utilising mobile scanning to achieve further efficiencies and aid smooth operations.”
Ian Woodgate, Digital Transformation Specialist for Oporteo Ecommerce Solutions at BCP comments: “We expect wholesalers to expand their digital offerings in the coming years. Technological advancements are driving an ongoing digital transformation across industries, and the impact of the COVID-19 pandemic has only accelerated this trend. As a result, wholesalers must invest in digital solutions to remain competitive.” Digitisation enables wholesalers to share inventory info in real-time, automate orders, exchange data, collaborate on planning, and utilise analytics. As a result, they can boost their visibility, optimise inventory, enhance collaboration, and enable data-driven decision-making for better efficiency and customer satisfaction.
“Wholesalers must be aware of emerging trends to keep up with changing customer preferences,” adds Woodgate. “These include ecommerce growth, sustainability, personalisation, social media influence, and omnichannel experiences. By aligning their strategies and product offerings with these trends, wholesalers can better meet the evolving demands of their customers.”
Analysts anticipate that customer service quality will be equally significant, if not more, compared to pricing within the industry.
To optimise sales, wholesalers must fulfil the growing customer expectations, particularly in terms of the digital experience provided. Key approaches should encompass ensuring the usability of digital channels is as good as the experience of leading retail ecommerce sites; and providing consistent, real-time information.
BCP’s Ecommerce Platform is its most popular product, specifically designed to help wholesalers overcome common pain points. It’s an all-in-one platform that supports B2B and Direct-to-Consumer (D2C) sales channels. The platform has helped wholesalers improve customer experiences, streamline order processing, and maximise market exposure.
At BCP, continuous product development is a priority to meet the evolving technology market. Recent software versions include: customer self-service reporting, PWA technology for a smooth experience, fast barcode scanning and the ability to upload orders via spreadsheet.
“We’re continually improving to keep our customers ahead in the wholesale industry,” says Woodgate. “In this exciting digital era, wholesalers must ride the wave of innovation, data sharing, and consumer trends to thrive. By embracing the power of digitisation, collaborating with strategic partners, leveraging the Oporteo Ecommerce Platform, and embracing new product developments, wholesalers can unlock unparalleled growth, exceed customer expectations, and conquer the competitive landscape.”
Tanya Pepin, Managing Director at TWC, comments: “More and more wholesalers are recognising the need for – and benefits of – sharing data across their business and with their supplier base.”
TWC has just signed up another buying group, Sugro, to its SmartView platform. Combining the data from multiple member wholesalers (or depots) and cleansing that data to an agreed common product hierarchy, allows the central office to have a single version of the truth, understand what is driving performance and make data-driven decisions.
In turn, as well as understanding the detail of their own performance, buying group members can benchmark how they are doing against the rest of the business, identifying where they may have gaps or opportunities. And for suppliers, they can understand the detail of their performance within that specific operator. They can grow their sales with that wholesaler by identifying tactical insights such as where they have distribution gaps, understand their performance vis a vis their competitors and the impact of activity such as pricing changes and promotions.
“For our clients with a retail estate, our SmartView Retail solution combines wholesale shipments and retail EPOS data into one platform, allowing the operator and its suppliers to toggle between wholesale and retail metrics,” adds Pepin. “Not only does this provide an ‘end to end’ view of performance, but it also allows operators to educate their retailers on what is and isn’t working within their stores.”
TWC has just launched SmartView Convenience which is a market read for independent convenience. This covers the 30,000+ independent retail and wholesaler-supplied symbol stores in GB, allowing businesses operating in the sector to understand the true performance of this previously hard-to-measure part of the market. This dataset will enable you to demonstrate the scale and scope of the channel; compare your performance to the market; and identify the top sellers and any range gaps to drive your cat man agenda in wholesale/convenience.
“Our representative sample of ca. 6,500 standalone convenience stores have been cherry-picked from a larger pool of more than 12k stores,” says Pepin. “We’ve spent months identifying the ‘right’ stores, removing outliers and stores with incomplete data and balancing the sample against leading industry reports. We’ve then factored up the data using an algorithm to extrapolate this sample to represent total GB independent convenience. The algorithm will continuously update to rebalance the read to ensure consistency and accuracy.”
TWC’s experienced data quality team then cleanses the data to provide a consistent product hierarchy, allowing its clients to structure the data their own definition of the market. The data is delivered via the SmartView reporting tool, allowing users to quickly and easily refresh and visualise their performance.
“Suppliers have noted that whilst they have a wealth of data on business-to-consumer online sales, they generally have very little on business-to-business online transactions,” Pepin continues. “There is a pressing need within the channel for wholesalers to share customer behaviour online, as well as omnichannel data. We are confident that more progressive wholesalers with the right digital capability will be working on this at the moment – if they have not done so already.”
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