In the world of retail, relationships between wholesalers, manufacturers, and customers are shifting. For decades, most manufacturers did not sell directly to customers. Wholesalers served as middlemen by purchasing items in bulk from the makers and sell them to consumers at a higher rate. With the rise of online retail, however, the way customers shop is changing. Those changes also improved our customer's buying experience.
Why Didn't Manufacturers Sell Directly to Customers?
For many manufacturers, working with wholesalers was traditionally the only way to get their products in front of customers. Wholesalers provided the manpower, infrastructure, and retail space that the manufacturers couldn't afford on their own.
However, with the rise of the internet and small businesses leveraging websites, the distribution business model is evolving. It allowed us to skip pass the wholesalers and selling products directly to consumers so you will have the benefit of a direct factory price.
Traditional wholesalers and retailers, such as big-box stores, brick and mortar shops, and malls are now presented with new competition from manufacturers, who often sell at prices distributors can't match without losing money.
Pros of Buying Directly From Manufacturers
In the old model, manufacturers made only small profits compared to wholesalers' profit margins. Companies needed interest from wholesalers in order to be viewed as a legitimate company.
Manufacturers like us needed the validation of an established retailer to get in front of customers and make sales. But the ability to sell directly to consumers comes with benefits for both manufacturers and consumers:
Manufacturers can connect directly with people who want their goods.
Manufacturers can increase their profits.
Customers have access to specific items to meet their needs/interests, not just what is available in stores.
Prices decrease because manufacturers can save on retail space costs and wholesaler fees.
There is a greater market for specialty products that would not be profitable for wholesalers to stock.
The rise of manufacturers selling directly online is changing how customers shop and do business. When we take advantage of online selling, getting a special item or garment can be done from the comfort of a couch, as simple as a few tap on the screen, creating an enhanced experience to attract customers.
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