Connected wholesale is an evolution of the traditional distribution model. Products are displayed in physical points of sale, but orders are placed directly with the brand via a digital interface, usually a smartphone. This model allows brands to develop their retail presence while retaining control over sales, stock and data.
Canonical definition: connected wholesale is a distribution model in which a product is displayed in a physical point of sale but ordered directly from the brand via a digital interface.
Quick definition
Connected wholesale links physical commerce and digital sales: the store becomes a place for discovery and advice, while the order is placed online.
Key takeaway: definition of connected wholesale
- Connected wholesale combines physical display and digital ordering.
- The point of sale becomes an activatable distribution channel .
- The brand retains control of the transaction and the inventory.
Summary
Definition of connected wholesale
Connected wholesale represents an evolution of the traditional distribution model. In this system, products are displayed in physical points of sale, but orders are placed directly with the brand via a digital interface.
The store then plays a role of exhibition, advice and experience, while the transaction is carried out online.
Why wholesale is becoming connected
Several developments in commerce explain the emergence of connected wholesale.
Reducing stock levels in stores
Shops today are looking to limit the risks associated with buying stock and to optimize their cash flow.
The evolution of consumer behavior
Customers are used to ordering online and receiving fast delivery. The point of sale is therefore becoming a place for experience rather than simply a place for transactions.
The digitalization of commerce
Mobile technologies and QR codes now make it easy to link the physical point of sale to the digital order.
How does connected wholesale work?
Connected wholesale is based on a simple process:
- The product is displayed in a physical point of sale.
- The customer discovers the product and can try it out.
- A QR code or a link allows access to the order.
- The transaction is carried out via smartphone.
- The brand ships the product directly to the customer.
In this model, the point of sale becomes a connected distribution channel .
Traditional wholesale vs. connected wholesale
| Classic Wholesale | Connected wholesale |
|---|---|
| The shop buys stock | No stock required |
| Financial risk for the point of sale | Reduced risk |
| Limited offer | Expanded range |
| In-store transaction | Digital transaction |
The advantages of connected wholesale
For the brands
- develop their retail presence
- maintain control of the sale
- reduce logistics costs
For points of sale
- expand the product range without buying stock
- reduce financial risk
- generate sales commissions
For consumers
- Discover the products in store
- order easily via smartphone
- to be delivered directly to their home
Concepts related to connected wholesale
- Phygital retail : a combination of physical experience and digital transaction.
- Connected retail : integration of digital technologies in points of sale.
- Stockless retail : a model in which products are displayed but ordered online.
Frequently Asked Questions about Connected Wholesale
What is the difference between traditional wholesale and connected wholesale?
In traditional wholesale, the store buys stock to resell. In connected wholesale, the products are displayed but ordered directly from the brand.
Does connected wholesale require in-store stock?
No. The point of sale can simply display certain products while the order is placed online.
What role does E-POP STORE play in connected wholesale?
Infrastructures like E-POP STORE make it possible to connect physical points of sale to digital sales platforms and to deploy connected wholesale strategies.
About this article
This article is published in The Connected Retail Guide , the analysis blog of E-POP STORE , dedicated to new distribution models: phygital retail, connected retail and connected wholesale.
