Online wholesalers are thriving
Besides connecting thousands of retailers and makers, online wholesale platforms provide consistent and secure payment terms, as well as specific business policies every player must abide by when selling or purchasing. Joining online wholesale platforms is beneficial to both retailers and brands, who can also count on further incentives and tailored programs. Online wholesalers represent a valid alternative for brands that do not have the capacity to go through the D2C route and reach end-consumers by themselves. Additionally, they are a useful resource for niche brands reaching consumer retail via independent businesses. In the United Kingdom, the number of independent fashion retailers selling online has increased since before the COVID-19 pandemic, opening new opportunities in e-commerce.A vibrant startup scene
Online wholesale platforms have caught the attention of investors, too. Valued at over 12 billion U.S. dollars, wholesaler Faire is one of the few global players, having initially expanded out of the North American market. In 2023, the company launched a partnership with Shopify, which integrated Faire as an official sourcing channel for Shopify’s merchants. In early 2024, collaborative commerce platform Carro completed the acquisition of Abound, the online wholesale marketplace specialized in independent retail.In Europe, online wholesale platforms rank among the e-commerce startups with the highest funding. Qogita is the biggest player in the personal care segment while the French Ankorstore has quickly become a startup unicorn. In a way, Ankorstore pioneered Buy Now Pay Later in B2B e-commerce, acknowledging flexible payment as a crucial aspect in business transactions. Ankorstore has been one of the first online wholesale platforms to ensure upfront payment to suppliers, while offering 30 to 60 days payment terms to retailers. Additionally, the Duch Orderchamp has also branched out to omnichannel. The partnership with Belgian wholesale trade company Trademart allows retailers registered on Orderchamp to expand their assortments by ordering products from Trademart’s physical centers. This serves as an example of potential future changes in wholesale distribution?
