BLOG . B2B Wholesale Marketplace

Consumers have recently embraced online shopping, and this shift had a profound impact on their preferences and daily lives. The rise in popularity of B2B wholesale marketplaces has played a significant role in this transformation.

These B2B marketplaces offer various advantages, including flexible payment options ranging from mobile banking to cash payments and streamlined business operations thanks to cloud technologies. 

With this support, retailers like you can provide consumers with the best shopping experiences they’ve ever had. Join us in discovering the top B2B wholesale marketplaces tailored to fashion retailers.

Top B2B Wholesale Marketplace 

Alibaba 

B2B ecommerce wholesalers, manufacturers, and sellers can expand their online operations effectively through Alibaba. It is a convenient and cost-effective platform for reaching over 40,000,000 active buyers across 200+ countries and regions.

Alibaba equips sellers with the essential tools and expertise necessary for a successful online presence in the ecommerce landscape. This B2B wholesale marketplace also eliminates the need for expensive trade shows, resulting in cost savings.

With this digital storefront, your products are readily available to potential customers online, reducing the time and effort spent on cold calls to generate leads. 

Membership on Alibaba comes at a low upfront cost, making it particularly suitable for small and medium-sized enterprises (SMEs). Utilizing the provided dashboard and analytics tools, you can closely monitor and optimize your business as needed.

Pros:

• Alibaba serves a global network of retailers who utilize the marketplace to purchase inventory.
• Before commencing sales, Alibaba mandates brand profiles to undergo verification, establishing trust with potential customers before they access your product listings.
• Alibaba automatically translates B2B storefronts into 18 different languages, enhancing accessibility and enabling international expansion.

Cons:

• Intense competition on Alibaba makes it challenging to distinguish your wholesale brand and offerings.
• Shipping times can extend due to the majority of retailers operating in Asia.
• Profit margins and brand reputation often face downward pressure as products tend to be similar, necessitating brands to engage in price-based competition.

Handshake 

For U.S.-based brands, Handshake provides a gateway to the global wholesale market. Notably, this is a fee-free marketplace, where even the shipping expenses are covered by the retailers. Consequently, all the revenue generated from sales on this platform goes directly into your pockets.

This platform enables independent businesses to connect with over 65,000 retailers. Additionally, it integrates seamlessly with the Shopify platform, allowing you to oversee your Handshake profile and product listings from within Shopify.

Handshake primarily deals in product categories such as accessories, apparel, beauty & wellness, food & beverages, home & lifestyle, jewelry, kids’ products, stationery, and pet supplies. Moreover, it offers a variety of tools to give you complete control over your products, pricing, and brand reputation.

Pros: 

• Over 65,000 retailers are already active users of the platform, making it a valuable resource for wholesale brand discovery.
• The Handshake app facilitates the management of marketplace sales through your Shopify backend.
• You have the flexibility to establish low minimum order values, which can be an effective incentive for attracting first-time B2B customers to purchase your products.

Cons:

• The platform is exclusively available to retailers within the United States.
• There is no option to delegate order fulfillment to Handshake, necessitating alternative arrangements for this aspect.

Faire

Highlighted in both Fast Company and Forbes Magazine, Faire represents a groundbreaking online wholesale marketplace. Its primary mission is to establish connections between independent retailers and a vast network of over 40,000 prominent brands and wholesalers spanning the United States, the United Kingdom, the European Union, and the global landscape.

Remarkably, Faire is the preferred choice of over 300,000 retailers who rely on its services to discover and procure fashionable products for their diverse retail establishments, ecommerce ventures, or small online boutiques.

Faire offers an extensive array of premium products, covering nearly every significant category or niche, ranging from home decor and fashion accessories to toys, stationery, and pet supplies.

Pros: 

• Communicate with your B2B buyers directly via the Faire dashboard.
• Provide your B2B customers with convenient buy now, pay later options like net 60 terms.
• Selling on Faire’s marketplace does not entail a monthly subscription fee.

Cons: 

• B2B orders on Faire incur high commission fees.
• There are additional charges associated with managing returns.
• Faire mandates that sellers maintain consistent wholesale pricing across all B2B platforms.

Ankorstore 

Ankorstore is a prominent player in the B2B wholesale marketplace arena, providing an avenue for you to reach an active and verified community of over 300,000 retailers. Additionally, this platform serves as an excellent opportunity for immediate network expansion.

Notably, Ankorstore features products from leading global brands in diverse categories, including home and living, grocery, fashion, stationary, jewelry, beauty, and children’s products. 

Joining this platform is free of charge, with a commission structure of 24% for the initial order and 12% for subsequent reorders.

One notable advantage of being part of Ankorstore is the absence of cash flow challenges, as the platform offers payment upon delivery. Moreover, it covers the shipping costs for your product deliveries.

Pros: 

• Extend payment options like cash on delivery or 60-day payment terms to your B2B clientele.
• Enjoy increased autonomy over wholesale pricing, without any constraints on setting inventory prices.
• Ankorstore serves customers and maintains offices across nine European countries, including the United Kingdom, Germany, Sweden, and Spain.

Cons:

• Only European brands are eligible to register and sell on the Ankorstore platform.
• Ankorstore imposes a minimum order requirement of £100, excluding VAT, which may deter small businesses or first-time buyers.
• Ankorstore is primarily tailored to niche brands and independent retailers, potentially making it less appealing to well-established and already interconnected brands.

Amazon Business 

Amazon.com is a well-known B2C and D2C marketplace, but it also operates a platform called Amazon Business specifically tailored for B2B wholesale transactions. Over 5 million organizations utilize this platform for employee purchasing. It provides an efficient way to reach a wide audience with a unified shopping experience.

Whether you’re dealing in office supplies, IT products, restaurant supplies, or professional medical items, you can offer your products in bulk on this B2B wholesale marketplace. Notably, selling larger quantities comes with reduced fees.

Amazon Business allows you to manage both B2B and B2C inventory within the same seller account. Additionally, the platform automates invoice generation, eliminating the need for manual invoicing. Furthermore, it offers free apps for Android and Apple devices, enhancing accessibility and convenience for users.

Pros:

• Access a global audience through the marketplace.
• Benefit from cost-effective marketing and B2B customer acquisition efforts, as a substantial portion of buyers in the UK (20%) and the US (15%) already engage in purchases through Amazon Business.
• Tap into Amazon’s established reputation and extensive supply chain network.

Cons:

• Intense competition on the platform can make it challenging to stand out.
• Limited control over your selling methods and communication with B2B buyers.
• Restrictions exist regarding the product categories that can be listed on Amazon’s B2B marketplace.
• Some retailers may have reservations about purchasing from you on Amazon due to differing brand values.

Tundra 

With a track record of trust from over 25,000 retailers, Tundra stands as the largest online wholesale marketplace in the USA, featuring a staggering selection of over 2 million products curated from 10,000 independent brands.

Tundra caters to a wide range of retail needs, spanning from fashion accessories and toys to kitchenware and pet supplies. To get started, you can easily create a free account and begin your sourcing journey directly from numerous leading wholesalers and brands based in the United States, all through a single platform.

Notably, Tundra distinguishes itself by not imposing any commissions or transaction fees. Consequently, suppliers have the freedom to extend the lowest wholesale prices to buyers, often presenting discounts of up to 50% off the manufacturer’s suggested retail price (MSRP).

Pros:

• Tundra seamlessly integrates with Shopify.
• Tundra employs a stringent screening process to identify and prevent fraud among B2B buyers before they can establish an account on the platform.
• The marketplace takes charge of the shipping for substantial B2B orders, potentially leading to cost savings, especially for high-volume shipments.

Cons: 

• When it comes to selling on Tundra, there are no monthly subscription fees or commissions to worry about.
• Tundra generates its revenue primarily through shipping fees and on-site advertising. Consequently, it may prioritize higher visibility for brands that pay for such services.
• Tundra highlights businesses more prominently in its marketplace by awarding them a gold badge. 
• To qualify for this badge, businesses must offer products at prices 10% lower than those on any other marketplace or maintain a minimum order value of less than $50. These conditions can potentially impact already narrow profit margins in the wholesale sector.

More Wholesale Marketplaces

The wholesale marketplaces mentioned earlier are well-known and trusted options in the market. However, there is also a wide array of alternative wholesale marketplaces available for your consideration. 

• Liqidation.com: A leading online wholesale auction marketplace that offers opportunities to source liquidation and excess stock at prices often discounted by 70-80% compared to retail.
• Orderchamp: A digital marketplace designed for purchasing and selling wholesale products. It stands out with low minimum order requirements, free shipping, and 60-day payment terms.
• TradeGala: This UK-based wholesale fashion marketplace specializes in connecting sustainable fashion brands with B2B buyers and retailers.
• Dropee: An innovative B2B wholesale marketplace that has gained the trust of over 50,000 global retailers since its establishment in 2017.

These alternatives provide additional options to explore when seeking wholesale products and can cater to specific needs and preferences.

How To Choose a B2B Marketplace 

Selecting the right B2B marketplace for your business can be overwhelming due to the abundance of options available. To simplify this decision-making process, consider the following key factors:

Industry Focus: Look for a B2B marketplace that specializes in your industry or niche. Industry-specific platforms often have tailored features, a better understanding of your needs, and a more targeted audience.

Product Range: Assess the variety and quality of products available in the marketplace. Ensure that it offers the products you need to meet your customers’ demands effectively.

Supplier Credibility: Investigate the reputation and credibility of the suppliers on the platform. Reliable and reputable suppliers are more likely to provide consistent product quality and reliable shipping.

Pricing and Fees: Understand the pricing structure and fees associated with the marketplace. Some platforms charge subscription fees, and transaction fees, or take a percentage of each sale. Make sure the cost aligns with your budget and business model.

User-Friendly Interface: A user-friendly interface is crucial for ease of navigation and efficient transactions. Test the platform’s interface and check for features like product search, order tracking, and communication tools.

Customer Support: Evaluate the level of customer support provided by the B2B marketplace. Timely assistance can be critical in resolving issues and ensuring smooth transactions.

Payment Options: Consider the payment methods supported by the platform. A variety of payment options, including secure online payment gateways, can make transactions more convenient for both you and your suppliers.

Shipping and Logistics: Assess the marketplace’s shipping and logistics capabilities. Efficient shipping options and tracking services are essential for ensuring timely deliveries to your customers.

Scalability: Choose an ecommerce marketplace that can grow with your business. Ensure it can accommodate your expanding product range and increasing transaction volume.

Reviews and Recommendations: Seek out reviews and recommendations from other businesses that have used the platform. Their experiences can provide valuable insights into the marketplace’s performance and reliability.

Legal and Compliance Considerations: Ensure that the B2B marketplace complies with all relevant legal and regulatory requirements, including tax laws, import/export regulations, and data protection laws.

Integration and Compatibility: If you already have an existing business system or software, check if the B2B marketplace can seamlessly integrate with it. Compatibility can streamline your operations.

Recommended Read: 15 Ideas for Your B2B ecommerce Marketing Strategy

B2B Wholesale Business Examples

B2B wholesale operations are integral to virtually every industry, spanning healthcare, industrial machinery, and the food sector.

Example 1 

• Wirsam Scientific, which supplies a wide array of scientific instruments to laboratories throughout sub-Saharan Africa, transitioned to a comprehensive cloud-based platform to streamline its operations. 
• This move allowed Wirsam to automate transaction management across various currencies and gain a unified perspective on sales orders, invoicing, and purchasing for their extensive inventory of 20,000 SKUs. 
• This system overhaul enabled Wirsam to shorten delivery lead times and reduce IT expenditure significantly.

Example 2

• In the pharmaceutical industry, wholesale distribution is a pivotal stage before products reach medical professionals and consumers in the United States. 
• McKesson Corp. is a key player in this distribution network, having established strong partnerships with prominent pharmaceutical manufacturers and medical equipment makers. 
• McKesson distributes a wide range of pharmaceuticals and medical products to pharmacies, hospitals, health systems, and clinics. 
• Their extensive reach encompasses the delivery of over one-third of all prescriptions in the U.S., serving a customer base exceeding 40,000.

Example 3

• MRS Packaging specializes in distributing food and beverage items across the Middle East, catering to the evolving tastes of consumers in the region with offerings like nachos, hotdogs, and flavored popcorn. 
• To accommodate their remarkable business growth of 300% within a few years, MRS Packaging adopted NetSuite’s OneWorld cloud-based ERP system. 
• This implementation allowed MRS Packaging to simplify and automate interactions with global suppliers while complying with local taxation regulations and supporting multiple languages. 
• Enhanced supply chain management eliminated product shortages and reduced inventory levels by as much as one-third.

Must-Have Features of a B2B Wholesale Marketplace

• A robust B2B wholesale platform should possess a comprehensive product catalog that displays all available items. It should be capable of offering tailored pricing based on the volume of orders placed by buyers.
• A B2B ecommerce site should accommodate both bulk and wholesale orders, catering to businesses as their primary audience. Nevertheless, it should also support smaller orders for less in-demand products.
• Maintaining information confidentiality is crucial in such websites to shield product specifications and pricing from other vendors.
• A B2B marketplace should empower each vendor to oversee their company information, contact details, product listings, catalog, and pricing via a multi-vendor portal.
• The platform should feature user-friendly search filters and navigation tools to ensure a seamless user experience.
• Buyers on these platforms should enjoy flexibility in modifying their purchase orders, shipping details, payment methods, delivery options, and payment terms.
• Sellers should have full control over configuring their ecommerce pricing, with real-time integration into backend systems.
• Additionally, these online platforms should offer quick and effortless reordering options, as this is a common workflow for B2B buyers.
• A reliable B2B marketplace should allow vendors to update product details, images, and pricing consistently across various touchpoints to prevent losing potential customers due to inaccurate product information.
• B2B trade platforms must provide a range of payment methods, encompassing both modern and traditional options to ensure a smooth checkout experience for all buyers.
• Effective quote management features are imperative for these websites, as they help merchants expedite fulfillment and reduce human errors.
• Maintaining a balance between ecommerce SEO and customer-specific pricing is vital; therefore, B2B marketplaces should offer restricted access controls for merchants to customize or hide product prices based on the user.
• Another valuable feature of a B2B ecommerce website is the ability to share shopping carts, enabling multiple individuals to participate in the purchasing process.

Why Enterprise brands should consider creating their own B2B marketplace?

Enterprise-level B2B brands should consider creating their own B2B marketplace rather than relying on existing marketplace websites, as it offers several advantages. 

Developing their own multi-seller portal allows enterprise brands to not only their sellers and distributors but also manufacturers and sellers from their industry. 

Here are the benefits of building their own multi-vendor marketplace:

• Streamline and automate business processes with centralized control over operations and vendors.
• Achieve cost-efficiency by saving on various levels, such as staffing and capital expenditures.
• Simplify the process of onboarding vendors from diverse industries and geographic locations.
• Expand market reach to new territories.
• Increase sales through quicker sales cycles facilitated by automation and self-service options.
• Easily diversify into new, disruptive business models.
• Sell through multiple digital channels to a wide range of customer groups.
• Enhance brand recognition and visibility.
• Create multiple revenue streams within their B2B online marketplace.
• Efficiently manage sellers and exercise better control over their activities.

While the advantages of building a B2B marketplace are numerous, it’s important to note that developing one from scratch can be resource-intensive and time-consuming. An alternative and more efficient approach is to opt for an advanced B2B marketplace builder that offers customizable turnkey solutions for constructing a state-of-the-art B2B ecommerce platform.

Choose the Right B2B Wholesale Marketplace for Your Products

In the dynamic landscape of B2B wholesale marketplaces, businesses are harnessing the power of online sales to connect with a diverse range of retail customers. Establishing a compelling online store on a reputable wholesale website is essential for success in this digital era.

To thrive in this ecosystem, savvy business owners are continuously exploring new avenues. They are reaching out to new customers and embracing emerging brands to expand their horizons. This proactive approach keeps them ahead of the curve.

One of the keys to success lies in offering competitive prices that attract attention amid the vast ocean of search results. Gone are the days of traditional methods; the modern B2B marketplace demands innovation and adaptability.

As technology advances, open-source solutions are becoming increasingly popular among supplier-oriented and buyer-oriented marketplaces. These platforms provide the flexibility and scalability needed to cater to the evolving demands of businesses.

In this ever-evolving landscape, product pages serve as the digital shopfronts where first impressions matter. A well-crafted product page can make all the difference, enticing international buyers and helping your offerings stand out in a crowd.

FAQ

What is the significance of “Global Sources” in the B2B wholesale marketplace?

“Global Sources” is a notable platform that connects buyers and sellers in the wholesale market. It provides access to a wide variety of products and helps businesses source from international suppliers.

How does customer service play a role in the B2B wholesale marketplace?

Exceptional customer service can set your business apart. Having three times the average level of customer service can enhance the buying experience for your clients.

What are wholesale suppliers, and why are they important in a B2B wholesale marketplace?

Wholesale suppliers are businesses that offer products in bulk to other businesses. In a B2B wholesale marketplace, they play a crucial role as the primary source of products for retailers and other businesses. These suppliers provide a wide range of products at lower prices, making them essential for businesses looking to stock inventory and offer variety to their customers.

How can I find reliable wholesale suppliers on a B2B marketplace platform?

To find trustworthy wholesale suppliers, utilize the search features on the marketplace platform. Look for suppliers with a good reputation, positive reviews, and a history of successful transactions. You can also reach out to other businesses within the ecommerce marketplace for recommendations.

How can a B2B marketplace contribute to brand awareness?

Being part of a B2B marketplace can increase your brand’s visibility as you reach a larger user base. This can help you establish your brand in different industries and attract potential buyers.

What are the advantages of operating on a B2B wholesale platform with lower operational costs?

Lower operational costs, which are twice the average, can contribute to higher profits for your online business. Reduced costs can be achieved through efficient management and lower overhead.

How does “Digital Commerce” impact the B2B wholesale marketplace?

“Digital Commerce” refers to online business activities. Being four times more involved in digital commerce can expand your reach and open up opportunities for a wider variety of products.

What role does a mobile app play in the B2B wholesale marketplace?

A mobile app, mentioned twice the average, can enhance accessibility and convenience for both buyers and sellers. It allows for real-time data access and interactions on the go.

Why are “supplier-oriented” and “buyer-oriented” marketplaces mentioned in B2B Wholesale Marketplace?

“Supplier-oriented” marketplaces focus on meeting the needs of suppliers, while “buyer-oriented” marketplaces prioritize the preferences of buyers. Understanding the difference can help you choose the right platform for your business.

How can businesses ensure a seamless online shopping experience in a B2B marketplace?

Providing the best experience, including features like a free exchange policy, can attract a larger audience and increase customer satisfaction, which is twice the average.

Are there any associations or resources for businesses involved in B2B wholesale marketplaces?

Yes, the National Association of Wholesaler-Distributors (NAW) is a valuable resource for businesses in the wholesale industry. They provide industry insights, best practices, and opportunities for networking and education.

What are the key strategies for marketplace sellers to succeed in a B2B wholesale marketplace?

Marketplace sellers can succeed by building a reputable profile, offering competitive pricing, and providing excellent customer service. Consistently update your product listings, respond to inquiries promptly, and fulfill orders efficiently to build trust with buyers.

What are the benefits of joining multi-vendor marketplaces in the B2B wholesale arena?

Multi-vendor marketplaces, mentioned above the average, allow multiple sellers to offer their products in one place. This can lead to increased exposure and a larger pool of potential buyers.

How do online payments affect the B2B wholesale marketplace?

Online payments, mentioned once above the average, streamline transactions. They enable quick and secure financial transactions between buyers and sellers, contributing to a smoother purchasing process.

Why is reaching a larger audience important in the B2B wholesale marketplace?

Expanding your reach to a larger audience, once above the average, can lead to more potential buyers and a broader customer base. It can significantly impact the success of your wholesale business.

What is the role of “purchasing platforms” in the B2B wholesale marketplace?

Purchasing platforms” refer to tools or systems that facilitate procurement processes. Understanding how to leverage these platforms can streamline your operations and improve efficiency.