- How does a wholesale business work?
- Main differences between retailers and wholesalers
- What is a wholesale POS system?
- 8 essential wholesale POS features and benefits
- Finding the right wholesale POS system with Sekure Payment Experts
When every sale counts, the right technology can be a game-changer. A single sale can make a huge difference to a wholesale business’ month or even year. Did you know that the wholesale industry contributes over $9 trillion to the US economy annually? With so much at stake, having the right tools at your disposal is crucial. A POS system is the backbone of your wholesale business. It streamlines your operations, keeps things accurate, and ensures your customers get the experience they deserve. Whether you’re just starting your journey or looking to upgrade your existing setup, read on to discover which features are indispensable for your business.
How does a wholesale business work?
The wholesale industry is big. According to Statista, the total goods sales by US merchants is equivalent to 9.7 trillion dollars. It’s also growing. In 2021, wholesalers grew 21.8% when compared to the same month in the previous year.
While they work hand in hand, the wholesale business shouldn’t be confused with retail. Wholesale businesses buy products in bulk from manufacturers, later on selling them to retail stores. Most retail stores don’t buy directly from the manufacturer, creating a space for wholesale businesses to exist and sell. Essentially wholesalers buy products at a discounted price, later selling it to retail stores at a higher price.
Main differences between retailers and wholesalers
While the wholesale and retail industries are similar in many ways, including the features they require from their POS, there are some core differences that affect how a wholesaler functions and how they approach technology.
Retailers sell products directly to end consumers.
Wholesalers, on the other hand, are B2B (business-to-business) catering to retailers rather than individual consumers. Their primary customers are retailers, other wholesalers, or industrial consumers.
Retailers often sell smaller quantities suitable for individual or household use.
Wholesalers deal with larger order sizes, as they supply products in bulk to retailers. Their orders are intended to meet the resale needs of their clients, and the quantities are significantly higher.
Retailers often purchase products at a higher unit cost than wholesalers due to smaller order sizes. A retailer’s pricing model often involves marking up products to achieve a profit margin.
Wholesalers benefit from lower costs given the large product quantities they buy. They can easily negotiate more favorable pricing.
Retailers need to manage a diverse product range and they frequently need to reorder items as they sell to maintain adequate stock levels.
Wholesalers manage a smaller product range, but large quantities of each item. Their inventory management revolves around ensuring they have enough stock to fulfill bulk orders from retailers.
Retailers often have shops decorated to create a welcoming environment for shoppers. Retail stores use interior design, color schemes, engaging displays, among other things to incentivize customers to shop more.
Wholesalers focus on streamlining the sales process for business clients. Their primary goal is to efficiently process bulk orders, making it as simple and cost-effective as possible for retailers to restock their inventory.
What is a wholesale POS system?
Like any business that works with goods or services, a wholesale business needs a point of sale system to ensure the smooth flow of transactions as well as proper inventory management and finances. A wholesale POS system is a technology-driven solution used by businesses to manage sales, inventory, and customer data. This system is crucial for wholesalers, as it allows them to process orders and streamline their business operations.
The differences between retailers and wholesalers extend to their POS system requirements. A retail POS system is tailored to the needs of retailers, offering features like individualized customer tracking, loyalty programs, and tools for managing small and frequent transactions. It often integrates seamlessly with eCommerce platforms to serve online customers.
While a lot of these features also apply to a wholesale POS system, wholesale businesses need a POS that is designed to manage larger transactions, bulk orders, and customer-specific pricing structures. The type of POS focuses on inventory control, contract management, and streamlined bulk order processing.
8 essential wholesale POS features and benefits
1. Inventory management
When it comes to wholesale, it’s all about the inventory. Your POS system should offer robust inventory tracking capabilities, allowing you to monitor stock levels, manage reorders, and automate restocking processes.
2. Real-time updates
Your POS system should provide immediate visibility into every part of your business, including your inventory. Real-time updates help prevent overstocking or running out of key products, plus giving you access to essential data with just a few clicks.
3. Custom pricing
Pricing in the wholesale industry isn’t the same as in the retail industry. Retailers often work with set pricing that won’t change from customer to customer, or with how much a specific customer purchases. Most wholesalers work with volume-based pricing or discounts based on customer loyalty. Your wholesale POS system should allow for flexible pricing options, including setting customer-specific rates, discounts, and promotions. Custom pricing ensures that your customers receive the best possible deal while you maintain your profit margins.
4. Integration capabilities
Wholesale businesses work with many different technology vendors. This means your POS system should integrate seamlessly with other business software, such as accounting and eCommerce platforms. Integration ensures that data is shared across systems, reducing manual data entry and minimizing errors.
5. Mobile access
Having the ability to access your POS system on the go is invaluable. Mobile access lets your sales team stay connected and productive from virtually anywhere. Your sales team can use devices like smartphones or tablets to check inventory, process orders, and answer customer inquiries on the spot. This boosts efficiency and the quality of service provided to clients.
Many wholesale businesses also visit trade shows or industry events on a regular basis. Imagine you’re speaking to a potential customer that just visited your stand. With a mobile POS, you can showcase your products and process orders in real-time, eliminating the need for manual order entry later.
6. Safe and reliable payment processing
Accepting payments should be a smooth experience, no matter the business you run. This means accepting different types of payments and credit cards. In an increasingly digital age, accepting online payments or contactless payments is non-negotiable. Your wholesale POS system should also seamlessly integrate with eCommerce platforms, allowing you to take orders and accept payments online. This feature enables your customers to place orders at their convenience, 24/7, and it expands your reach to a broader market.
A smooth payment experience also means a safe experience. Keep customer information safe by choosing a POS system with secure and reliable credit card payment services. Make sure your POS system meets PCI compliance standards.
7. Customer relationship management (CRM)
Strong customer relationships are essential for the success of any wholesale business. A CRM system integrated into your POS helps you keep track of customer preferences, purchase history, specific discounts given and communication history. This information empowers you to offer personalized service and product recommendations, enhancing customer satisfaction and loyalty.
8. Reporting and analytics
All businesses need data to make informed business decisions. Robust reporting and analytics allow you to track sales trends, monitor product performance, gain insights into customer behavior, and even track employee performance.
Finding the right wholesale POS system with Sekure Payment Experts
From streamlined operations to customer information at the tip of your fingers, having a POS that fits your needs is a game changer, and something that no business should be without. A POS system, and one with features made for a wholesale business, is not just a tool; it’s a fundamental part of your business’s success. It simplifies your operations, enhances the customer experience, and provides invaluable data for informed decision-making.
At Sekure, we understand the unique demands of the wholesale industry. With our numerous POS partnerships and our team of Payment Experts, we can help you on your journey to finding the right technology supplier. By prioritizing features such as inventory management, smooth sales processes and customer relationship management, we’ll help ensure that your wholesale business is well-equipped to thrive in today’s competitive market.
It’s time to take the next step for your business. Schedule a demo with one of our Payment Experts and set your wholesale business up for success.