2023 Wholesale Distribution Trends Transforming the Industry

As distributors continue to reset and recalibrate in a constantly changing market, what are the 2023 wholesale distribution trends ahead?

From all indications, the intense pressure on wholesaler distributors to transform during the pandemic isn’t going away. Economic turbulence, an influx of new competitors, and a talent shortage will force them to find new ways to remain competitive and drive growth.

As they tackle the challenges ahead, they’ll be applying lessons learned from the past three years.

For example, distributors that invested in e-commerce before COVID saw their e-commerce activity grow significantly as sales moved online, according to a Modern Distribution Management (MDM) report. Those that had been slow to adopt e-commerce had to catch up fast.

Now, nearly 21% of distributors say e-commerce sales account for 20% to 30% of total revenues, a trend that’s likely to continue and even expand, the report found. Many wholesale distributors also overcame their conventional ways and accelerated investments in technologies like data analytics and artificial intelligence to grow their business.

1. New competition Wholesaler distributors now face stiff and game-changing competition on several new and unexpected fronts. An increasingly competitive landscape will be one of the top wholesale distributor trends in 2023.
2. B2B personalization With e-commerce, mobile devices, and quick access to information, the modern B2B buyer is vastly different from years past. They expect the same kind of convenient, fast, and personalized experiences that they have in the consumer world.
3. Global disruption impacts supply chains Inventories are rising as over-ordering during the pandemic is coming back to bite manufacturers in their collective tail ends. Shipping delays, supply shortages, and transportation delays seem to be the rule rather than an exception these days. And labor costs and shortages are mucking with everything.
4. The drive for differentiation In such an intensely competitive market, wholesale distributors can’t afford to stand still. They need to find ways to add value in ways that their peers and online players can’t, which makes innovation is a top wholesale distribution trend for 2023.
5. Rapid tech evolution The cloud, e-commerce, automation, artificial intelligence, and the internet of things are transforming every industry. Distributors have a reputation for being traditional, but any of the time they thought they had to change evaporated in a flash during the pandemic.
6. Tackling the talent crunch While front-line workers like truck drivers and warehouse employees are harder to find, the competition for for customer-facing sales and support staff is intense. Distributors can find themselves struggling to attract the expertise they need as workers increasingly look for high-profile, purpose-driven brands.
7. Sustainable distribution With sustainability impacting how their customers operate, distributors that focus on it can differentiate themselves to stand out in a crowded market and drive growth.

Paving the way: the future of wholesale distribution

Successful wholesale distributors invest in a variety of technologies to ensure a fluid purchase process from start to finish. They also embrace tools that help them track, understand, and analyze every customer touchpoint with their companies to maximize customer experience.

Wholesale distributors are at a crossroads unlike any they have ever faced. But they’ve already made great strides in adopting technologies to help them rise above any adversity coming their way. By sustaining that momentum, they can not only survive, but thrive in the coming year and beyond.

Source: https://www.the-future-of-commerce.com/