Does technology play a vital role in wholesale trading?

Thursday, September 27, 2007

Technology is one of the cornerstones of commerce in any form in the current scenario. Every transaction has some sort of technological advancement enabling it, from the simplest process of buying orange juice from Wal-Mart to running a completely virtual online business. Wholesale trading is no exception. Logistics these days are completely dependent on technology, and the smallest business will find that access to technology is essential.

The Internet is also a big part of the revolution. In fact, many would say it’s a revolution in itself. Access to Internet technology has enhanced our lives in many ways – things that would take ages before are done with the click of a button. The Internet has enabled many small businesses to start up and compete in a global market place, something that was inconceivable earlier. Many of these businesses, particularly online ones, look to the Internet to provide them with the ability to engage in wholesale trading. The trend of drop shipping, especially via eBay, has created a niche for small traders to operate and make profits.

What the Internet technology has done is create a point of contact for the buyer and the seller – the online business and its customer, allowing the business to start up and operate without high costs. This has resulted in a number of entrepreneurs looking around them for products to sell that can be cheaply procured, sold at a higher price and shipped directly from the wholesale trader to the buyer. This has in turn increased the market size for the wholesaler, as well. Further, orders can be tracked and information exchanged through Internet or VoIP, so that it does not even matter where the seller, buyer or wholesaler is located in many cases. Communication is instant, easy and not bound by time difference.

Before the advent of Internet technology, most of these entrepreneurs could not have dreamed of starting up with the huge cost of carrying inventory. Even if these online business owners had the storage space, they may not have retail space and advertising dollars. Today, an online business can choose to warehouse products in the garage or basement, post images or audio and video clips of the merchandise in stock on their website and market it cheaply.

Additionally, technology in other forms has transformed the wholesale trading landscape. The ability to track merchandise that is en route or even to use VoIP technology to save operating costs has been a much talked-about development in the field of wholesale trading. As a wholesale trader, you can offer that all-important essential – great customer service via the Internet. Email and VoIP technology enables the small business owner to keep in touch with past, present and potential customers. Online marketing tools for your wholesale trading business are cheaper and more effective than traditional means. So even in the marketing arena, it’s technology to the rescue. This allows for greater marketing reach, customer acquisition, conversion and retention for a small business.

Finally, technology plays a vital role in attracting customers from all over the world to your wholesale trading business. If your product has a wide appeal, it will get access to a larger market online.

Author: by William King
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