Pound line stores are one of the most sought after wholesale platforms for retailers. However, there are instances wherein people still confuse Pound line stores with traditional retail stores. Moreover, with the online format taking over the wholesale market, this distinction apparently has become inconspicuous. Nonetheless, most of the distinction comes into the foray once you order an item. Before I explain each of the differences to you, let us have a look at what is an online pound store.
What is an Online Pound Store?
In layman terms, this is just the online version of the brick and mortar pound store. Every item that you as a retailer can buy physically from the pound store, can also be purchased from an online pound store. This basically means that the wholesale market has gone to the e-commerce platform. Wholesale e-commerce as an idea has revolutionised the e-commerce market all over the world. Retailers who benefited from the e-commerce platform on the customer end can now also reap the benefits of e-commerce on the wholesaler’s side of the spectrum.
Difference between Online Pound Line Store & Traditional E-Commerce Store
Apart from both using the online platform to do their business, there is not much of a difference.
Target Audience: B2B Vs B2C
B2B or business-to-business means companies or firms selling or purchasing items as well as services to businesses as opposed to customers. B2C or business-to-consumers are those firms that sell directly to customers. So, online pound line stores basically operate in a B2B industry. Since, it’s the target audience that is one of the main distinct points, their approach to everything including marketing, operations, and sales changes.
Another important distinction is the price flexibility with wholesale purchase. Since most pound stores get their items directly from the manufacturers, they are more flexible in adjusting the price of those items. As a retailer, this incentivizes you to buy more items in bulk pound wholesale stores at a price that both are comfortable with. However, unlike wholesale, traditional e-commerce store do not have so much elbow room in terms of offering discounts.
Buying in Bulk
While purchasing items from pound stores, you always have to buy in bulk. There is a minimum set-limit that any retail purchaser has to purchase. Moreover, when you are making purchases on a wholesale clearance sale, this limit may increase and the price for buying in bulk could reduce significantly. On the other hand, traditional e-commerce stores have a limit for a maximum product that you can buy on their platform. The wholesale pound stores can provide the discount on minimum order as they fixed at their online and offline store.
Online pound line stores cater to multiple retailers which spreads their business across different states and regions. Moreover, there are not many trusted wholesale suppliers in the UK, which makes online pound stores quite a lucrative destination for wholesale purchase. Even though traditional e-commerce has an online platform to showcase their products, the takers are considerably less in numbers when compared to the wholesale market.
Supply Chain Vs Marketing & Sales
In the wholesale business, the primary objective is to maintain a smooth supply chain mechanism because it serves as the backbone of the business. If the supply chain is smooth, the revenue of the wholesale business would eventually grow without much of an impetus from the marketing and sales channels. However, when it comes to traditional e-commerce, marketing and sales still remain the most essential part of their revenue generation strategies.
Barriers to Entry in the Business
B2B business may have less number of competitors, nevertheless, the competition is very tough. Getting into a wholesale business can be quite challenging if you are not fully cushioned by huge capital and contacts. Unlike wholesale business, retail business can start with any amount of funding and a few customers.
Now that you are well aware of the differences, I must say if you are planning to start a retail store and want to source your products from a wholesale supplier in the UK, online Pound Line stores are the ones you can go for. Since the platform is also available online, all the ease and comfort of purchasing can be availed by sitting in your store.