The wholesale business has changed a great deal over

the last 10 years that I have been involved

in it, and I'm sure it's changed even more compared

to the way it was 20 years ago.

The changes have shifted the entire parameters 

that the industry was once based on.

And I am sure that as new technology is introduced

there will be even more changes to come. 

So why is it important for you to see how

much the wholesale industry has changed?

There a couple of reasons.

The first reason is because it's important

to be reminded that changes are always taking

place, therefore we need to be

flexible so that we can adapt to

the changes as they take place. 

You don't want to miss on

opportunities to reach new

markets of buyers, or

wholesale sources, just

because you missed a change

that has taken place in the 


Even if a change is not expected, or seen

until it happens, wholesalers and retailers

that are flexible will have the necessary mindset

to adapt to the new realities of the 


Another reason why you want to 

take note of the actual changes is to

see if you can spot any opportunities

that might exist as a result of those changes.

And perhaps the most important reason is

because if you aren't aware of the

changes that have taken place

you will be stuck doing business in

an old fashion way that can turn customers


For instance, if you see that 

retailers are starting to purchase

closeouts directly from exporters

as opposed to from local distributors,

then you will want to jump on the

bandwagon as well.

So now that you see why it's so important

to be aware of these changes let's see

what they are.

Wholesale Industry Change #1

The traditional supply chain structure

has been disrupted. 

Technology, the Internet, and 

global trade developments, have

made this world an even more

connected place. This high degree of

connectivity has disrupted the traditional

supply chain structure by enabling

retailers to purchase directly from

importers, distributors directly

from factories, as well made

other connections between

parties that would otherwise

not have interacted with each 

other in the past.

Just look at the major disruption

that a website like Alibaba 

has created in the retail sector.

You now have retailers contracting 

with Chinese factories to manufacture

fashionable clothes based on their own designs.

There is still a role for a traditional supply chain

in certain segments, such as in heavy machinery

and highly regulated industries, but

most segments have seen the supply chain

model replaced with a more open

direct channel for everyone involved in

the market.

Many brands will seek to establish

licensed distributors so that

they can attempt to control

the supply chain for their products.

I believe this attempt is like trying to

hold back the waves from reaching the beach.

Instead the brands should be conducting

business based on an acceptance of

the current realities.

The brands that cannot adapt will

lose business to those brands

that are working based on the

current reality of the market.

Wholesale Industry Change #2

The Internet has become the new middleman.

While in the past many wholesale and closeout

buyers would need to rely on a middleman

to find merchandise, now the Internet

has enabled buyers to easily locate

the sources for the merchandise that they

are looking for.

On the other hand, entrepreneurs

can easily set themselves up as a

middlemen by using the Internet

to locate merchandise and

supply it buyers that do not

have the time or experience

to find closeout deals online.

Wholesale Industry Change #3

Wholesalers can now reach customers

all around the globe. 

In the past a wholesaler would

focus on customers who either came to

his warehouse, or customers in the city

in which he ran his business at. 

Today, a New York wholesaler can use the Internet

to market his closeout merchandise to

buyers located internationally,

enabling him to quickly reach

buyers in many countries

such as Australia, Nigeria, and Argentina.

For instance, I use YouTube videos

and article marketing to reach 

retailers throughout Africa, the Caribbean,

Latin America, and the Middle East.

The Internet has truly become the

most effective marketing tool

that any wholesaler could ever

have asked for.

Wholesalers can use advertising options

such as Google Adwords, Facebook pay per click

ads, and YouTube ads.

A wholesale seller can reach 

prospective customers by only paying

when a visitor clicks on his ads.

And since the wholesaler can decide how

much to bid for the ad, he can easily

control his costs to acquire a lead

for a new customer.

Wholesale Industry Change #4

Retailers and flea market vendors do

not need to rely on local wholesalers

for their merchandise needs.

They can now easily go online

and source wholesale products

directly from factories in China

and from wholesalers in other


I receive phone calls and emails

from customers all over the world

that found my closeout business online.

They no longer have to buy from a

local wholesaler who might be importing

the merchandise from my company.

They can now easily buy the merchandise

at below wholesale prices directly

from me without even having to travel.

Wholesale Industry Change #5

Entrepreneurs can purchase merchandise

directly from wholesale sources and then

resell the merchandise directly to 

consumers at close to the wholesale price,

without having a brick and mortar store.

I have seen wholesale buyers list

their closeout products on Amazon and eBay,

effectively reaching many more customers

than they could with a traditional retail


Wholesale Industry Change #6

Mobile shopping from smartphones.

Many wholesale and closeout buyers

are now using their smartphones

to search and buy


This means that sellers need to have 

websites that display properly on


You can either have a website 

designed specifically for those

that will access it through their

smartphones, or you

can have a website

hosted by hosting company that will show

a mobile version of your closeout website

when applicable.

Wholesale Industry Change #7

There is no more need for printing catalogs 

for your wholesale products. Now you

can easily create a website to display

and sell your products through.

The flip side of this is that customers

expect you to update your website

frequently, which is why you

should always be looking for new

products to sell.