We’ll be sharing some of the latest news to keep you informed and up-to-date on everything in the wholesale industry. Tips n’ tricks, advice, hot products, dates to remember, and everything in between!
So, let’s get started!
The wholesale industry is big business, with an estimated total revenue of $49.4 billion dollars in 2022. Industry analysts are estimating an increase in overall revenue to $64.3 billion dollars by 2025. The annual compound growth rate pencils out to ~7% per year, making it a great opportunity for smaller businesses to flourish.
From a top-down perspective, there are several factors that affect the industry. First things first, major wholesalers operate on a 1.8% profit margin, all things considered. Supply chain issues were the talk of the town during the pandemic and it has since cooled down. All of your favorite retailers were warning you about longer lead times, more expensive products, and an overall lower quality experience than what you’re used to.
Employee expenditures take a big chunk of profits for any business, accounting for ~ 50-75% of all costs. During an economic slowdown, it’s important to review all of your employee-associated costs and make sure your business is running as efficient as possible.
According to Oracle, “To achieve greater scalability, agility, and profitability, distributors will need to adopt omnichannel, direct-to-consumer, and subscription business models and invest in online merchandising, order fulfillment, and warehouse and transportation management.” This statement couldn’t be more true because, as a business owner, you should always be looking for ways to expand your business.
Here at 4sgm, we are continuing to expand our product lines to offer the best possible products for our clients. From brand name goodies to your everyday housewares, pet supplies, health & beauty, hardware, toys, and more, we have a product line for everyone! Be sure to check out our New Arrivals to stay up to date.
We’re going to keep it short & sweet but full of info for this week’s newsletter.
We hope you have a wonderful Sunday and we wish you a week of success in the upcoming week.
Please feel free to contact us with any questions or concerns.
– 4sgm ❤️