We could start this blog by giving you a lecture on why digital transformation is necessary for your wholesale business. But that would be inconvenient for the businesses who know little about digital transformation. Let’s begin with an introduction to this newly established word ‘Digital Transformation’. This will make it easier to understand the essence of the discussion.
What is Digital Transformation?
The process to integrate digital technology into all areas of business is digital transformation. Though it gets a boost during the COVID-19, this was introduced almost 30 years ago when businesses started using computers for their tasks.
The importance of digital transformation is in almost every wholesale business forum. This conclusion gets across loud and clear from many articles and studies related to how companies can optimize their businesses by using digital technology.
Why Does Digital Transformation Matter?
At a recent MIT Sloan CIO Symposium series event, IT analysts claimed that customer behavior has changed since the start of the COVID-19. They have quickly shifted to other shopping ways and online shopping is their priority.
Consumers were forced to rethink how to meet their needs through social distance, lockdown, and shutdown of physical stores. About 25% of shoppers said they were reluctant to shop online. Nearly 62% claim that they enjoy the online shopping experience because it's a simple process. This growing trend in online shopping has forced many businesses to secure their online presence.
What Drives Digital Transformation?
Digital transformation is not just terminology. It is a complete process to stay in business. Retailers and wholesalers used to battle it out in the streets and market. Now, B2B and B2C companies are fighting to secure their places in the digital world. Business leaders understand the situation and are now making every effort to ensure their presence in the digital marketplace. Those who cannot keep up quickly go bust.
- Demand for New Online Products
According to a report by Salesforce (2020), nearly 87% of shoppers believe in online information. Even if they want to buy anything from a brick-and-mortar store, they look for product information online.
- Personalized Experience
In this advanced era, customers expect to experience personalized shopping through omnichannel marketing. They enjoy using apps and like to get their products with no hassle. As a wholesaler, your retailers expect you to provide them everything with one click. 65% of the retailers stated they dislike wasting their time roaming around the market and arguing over the prices.
Let’s see why a digital transformation is essential for 2021.
Online presence is not a luxury anymore. It has become a necessity for wholesale businesses. In this competitive digital world, your customers have no time to waste. Your online presence helps you boost your business. Let’s find out a few to understand the impact of digital transformation on wholesale business.
- B2B Ruling the Market
As an expanding market, B2B eCommerce is exploding. Combined with manufacturers, wholesalers, and retailers, this industry is showing a tendency to touch $1.1 trillion by 2021. With this huge expected increase, eCommerce is luring many wholesale businesses resulting in tremendous competition.
As a wholesale business, if you cannot maintain your presence online you won’t be able to connect with your retailers directly. Gone are the days when wholesalers were promoting their business on the high streets. Now the online market has become the business street for B2B.
- Wholesale Platform Impact on Wholesaling
Your presence on an efficient wholesale platform not only optimize your business but also increases your sale. A wholesale platform allows you to use its audience for your business purposes. You can add your products on such platforms for the promotion. Many wholesale markets allow free access to their platforms by registering your business.
- Inventory Management System
An online inventory management system manages and tracks your stock in the system. It prevents dead stock and out-of-stock occurrences by setting reorder points. As a wholesaler, you can have your inventory available in different locations. With an effective online inventory management system, you can track the stock from all the locations in the same system. It avoids human errors. It generates sales and purchase orders to ensure a smooth order flow.
Digital transformation is a revolution in the wholesale business. It is not a shallow pond, it has so much to explore like a deep sea. Taking digitizing seriously can help you grow your business. Try using new digital methods to run your business. Your success rate might surprise you.