The Trends of Wholesale Distributors Change the Market

Many markets have appeared and have been forced to upgrade to the previous ones.

By all indications, the intense pressure on wholesale distributors to transform during the pandemic is not going to go away. Economic turbulence, the emergence of new competitors and the shortage of talent will force them to find new ways to remain competitive and continue to grow.

Wholesale distributors are now facing tough and constantly changing competition on several new and unexpected fronts. An increasingly competitive landscape will be one of the main trends for wholesale distributors in 2023.

The rise of direct-to-customer commerce has put them in competition with many of their own suppliers. D2C grew by 45.5% in 2020, accounting for 14% of total retail e-commerce sales, according to eMarketer, which expects this trend to continue at least until 2023.

Looking ahead to next year, wholesale distributors will face a large-scale disruption. Digital transformation will remain the name of the game.

D2C and B2B markets bring more competition

Distributors will need to double down on e-commerce and digital transformation next year. According to a Gartner study, 83% of B2B buyers prefer to use e-commerce to place orders and payments.

To boost their e-commerce capabilities, many distributors are focusing on improving online search potential, including SEO, product pricing, and artificial intelligence-driven personalization, according to the MDM study.

According to these advances, B2B marketplaces will have to be updated due to the constant changes in trends. Website homepage customization has gone from being a "good upgrade" to a necessity to stay competitive. In such an intensely competitive market, wholesale distributors cannot afford to stand still.

They need to find ways to add value in a way that their peers and online players can't, which makes innovation one of the top wholesale distribution trends for 2023.

• Offering high-value services: The standard product catalog is no longer enough. Wholesale distributors need to offer services around their products, based on customer needs. Examples include kit creation, pre-assembly, packaging, and IT services such as web design.
• Perfecting delivery: By adding digital channels and streamlining warehouse and logistics operations, distributors can provide the speed and convenience customers expect today.
• Becoming trusted advisors: Distributors can elevate themselves by collaborating with their customers throughout the life cycle of a larger project. Project management and coordination services are value-added services that can generate trust.
• Optimization of business operations: Through automation and smart technologies, distributors can reduce manual tasks to increase efficiency.

One of the keys to staying competitive is keeping up with technological innovation. The cloud, e-commerce, automation, artificial intelligence and the Internet of things are transforming all sectors. Distributors have a reputation for being traditional, but all the time they thought that they had to change things in an instant during the pandemic.

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