Question

Topic: E-Marketing

Wholesale Vs. Affiliate

Posted by Anonymous on 9/13/2010 at 11:27 AM ET 250 Points
What would be better strategy between a Wholesale program or an Affiliate plan?

I'm planning on changing my "big buyers" customers to a new channel so that they could bring more revenue and reach our profit targets.
I would like to know:
1. Where could I get useful information about these two channels or strategies to make my decisions?

2. Which of them would you recommend to implement? My company is an online store that sells communication goods to immigrants.

Thanks for responses.

--Juan
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RESPONSES

  • Posted on 9/13/2010 at 2:21 PM Moderator
    I'm not sure I understand the question or the issues involved. Can you be a bit more specific about what the objective is and why these alternatives are the right ones, and how they will help you accomplish the objective?

    How do your customers find you now? Do they shop online only, or do you have a bricks-and-mortar storefront too? Who are these "big buyer" customers? How do you identify them (other than by the fact that they are "big buyers")? Do you interact with them one-on-one, or is it all done anonymously online?
  • Posted on 9/13/2010 at 3:39 PM Author
    I manage an online store that only sells its products through Internet.

    Currently my big buyers purchase as same as the other customers (they find us online on search engines, pay per click and social media) so I need to bring them to a superior level where they could increase their purchase level by acquiring any discount or commission.

    Our big buyers are identified by the fact that they purchase big amounts of products in a monthly basis and they have been with the e-store for a long time. We do not currently interact 1-on-1 with them.
  • Posted on 9/13/2010 at 5:30 PM Moderator
    Are you sure they would increase their purchase level if you offered them a discount? If they're already big customers, they are obviously satisfied with the price/value relationship. Why mess with that?

    Wouldn't you be better off finding out WHY they are such good customers and look for others who might be encouraged to become more like them?
  • Posted on 9/13/2010 at 6:45 PM Accepted
    If I understand your question correctly I think this is more of a CRM issue. As mentioned by our esteemed mentor mgoodman the price/value relationship is good enough to keep them coming back . I would develop a CRM program to get feedback from them and how you can improve your offerings and get a feel why they like doing business with you. Think "value-added" services for your top customers . I'm sure you have their contact info try to send them a personal thank you letter with your contact information and ask for feedback. This gives them a sense that you value their business enough to find out what can be improved for them. This also subtly suggest that they can contact you directly for any issues like if a competitor is advertising lower priced products or services. From the feedback you can deduce if discounts will trigger higher buying motivations. Hope I was helpful . I wish you more success on your online business.
  • Posted by matthewmnex on 9/15/2010 at 8:48 PM Accepted
    I competely agree,

    You have big loyal customers, WHY have you never calle them up to talk to them on the phone?

    I am guessing that 90% of your income is coming from 5% of your customers.

    Better take damn good care of these customers.

    make a nice loyalty progrtamme for them, points rewards etc. Give them some incentives to buy more (not discounts) ie: for every 100 pieces get 5 free.

    Get free delivery on oreders over X amount etc.

    Send them a gift on their birthday or if they live close enough, organise a little meet and greet event for 20 or 30 people and show them first hand your new lines and new ofers.

    In other words, build a real relationship with them.

    Good luck.

    Matthew
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