How To Start A Wholesale Grocery Business

Starting a business will have you follow the same mandatory steps:

All this is well and dandy, a necessary step to ensure your business is a legal entity recognized by the law. But starting a wholesale business is a different type of flex altogether. Moreover, modern food distribution businesses face a whole new set of challenges. Specifically, food distributions should take the shortest timeline available. Also, consider that as a wholesale grocery business, your target is not one but numerous retail grocery businesses. Therefore, your target is bulk oriented. And even though modern technology is here to release some of the burdens off your business and employees, problems like selling and distributing fresh and unique foods are still prevalent. So, how do you start a wholesale business with all this in mind?


Understand What You Are Getting Yourself Into

What is a wholesale business?
 A business that purchases in bulk directly from the manufacturer or distributor of a product and resells it in smaller quantities to retailers. Typically, a wholesale business is a B2-B business, meaning the focus is not on the end consumer but on any company that sells and delivers the products to the end consumer.

As such, many wholesale businesses will buy their products at a discounted cost, given mainly by manufacturers and distributors because of the bulk purchases. This makes a wholesale business a mediator within the supply chain.

In the grocery industry, demand for products is high. This also means that the pressure to deliver is subsequently high. Therefore, only start a grocery store wholesale business if you have the basics down pat. That is:


Here Are Additional Tips For Starting Your Wholesale Business


  1. Determine What your Model Will be

As a wholesale business, you can choose to physically collect products in your warehouse before distributing them to your retailers or to send the products directly to the retailers from the manufacturers.

You can also decide to create a business that connects other wholesalers directly to retailers or vice versa through online channels. This might take more of a consultancy approach and can be operated from an entirely passive direction.

Bottom line, your choice determines your level of involvement and control over your products' distribution.
 For instance, with the wholesale model, a mobile app or a website might be enough to connect the wholesalers to retailers.

Therefore, your marketing and sales abilities determine your sales projections. On the other hand, choosing the distribution model means choosing a physical location, delivery models, and business location.

This requires more involvement and control over day-to-day operations. It is also more costly and time-consuming.


  1. Invest In Technology

Technology will help you run your operations more efficiently and solve some of the most significant challenges of running a wholesale grocery business. For instance, a POS system offers many features to help run a successful wholesale grocery store, like ample supplier and inventory management.

That is, it becomes easier to manage different suppliers efficiently, ensure you have the right product in your warehouse at the right time to meet demand, and provide that your space is efficiently utilized.

Technology like robotics also helps you provide fresh produce all year round. For instance, Mercadona, a Spanish supermarket, uses robots to manage fresh food inventory.

This has improved the packaging process by reducing the time required to prepare products for distribution. In turn, the business supplies more goods in a day, thus, increasing sales revenue.


  1. Work On Your Service

Whether you choose the wholesale or the distribution model, the service you offer your retailers must be top-notch. Your service creates customer loyalty and trust, meaning retailers will select and recommend your business every time.

Implement offers that enhance services
, like developing a robust return policy for goods damaged during delivery. This means you must be upfront with your manufacturers about their return policies, primarily when operating using a wholesale model.

Agree with your dealers on a strict payment policy. Checking and improving the after-sales service program is equally imperative to customer service. For example, work with manufacturers that offer 24/7 customer support. This guarantees your retailers have someone to call whenever they need assistance.


  1. Create A Business People Can Trust

Without trust, your inventory will not move because you won't have the influence you need to entice your customers to make a purchase
. How do you build trust? Through actions done consistently over time with good intentions.

For example, the current economy is wrought with inflation and increasing prices of goods and services. Therefore, communicate with your retailers beforehand instead of hiking prices without warning. Give viable reasons why the prices are going up as well.

Have a clear vision for your wholesale grocery store and make it known through your brand message. Then live up to that vision through actions. Additionally, hire the right employees. Your delivery persons, for instance, are constantly in contact with your customers.

Therefore, they can leave a good or bad impression. An excellent employee will always be an ambassador for your business in your absence. As such, get people who trust in your business vision. Also, build an excellent team of suppliers.


Erply's Got Your Back

Erply can help your grocery wholesale business keep your suppliers and retailers organized with just a few clicks. You don't have to worry about your pipeline regardless of the number of suppliers because Erply optimizes your list
. With a few clicks, you gain access to all your supplier information, like terms of payment and types of products they provide. Running a wholesale business also means that your inventory is complex. This is where Erply organizes your products based on type, size, suppliers, and other descriptions. Therefore, you can spend more time ensuring your suppliers get their orders on time and in mint condition. If you want to learn more about Erply and its offerings, request a demo
 and the free 60-day trial today.