In its latest “State of B2B Commerce Report,” NuOrder by Lightspeed found that 60 percent of brands’ average total sales is wholesale with 45 percent of that channeled into specialty/boutique and the rest into big-box retailers.
The research also showed that three in four brands said they are using a business-to-business software solution in their wholesale distribution process.
When asked about their wholesale distribution pain points, 44 percent of brands polled cited finding new retailers as a top concern, followed by 35 percent that are concerned about a lack of standardization (which compares to 37 percent in last year’s survey), and no visibility into buying and merchandising strategy at 32 percent (compared to 35 percent in 2023). Questions about finding new retailers was not asked in the 2023 survey.
Lack of data including sell-through rates and store allocation was cited by 31 percent of brands, which compares to 27 percent in 2023. Missed order deadlines came in at 22 percent, which is down from 28 percent last year. Overall, the report found brands are more digitalized and also using data more in the wholesale process.
When asked about the types of data leveraged, 62 percent cited sell-through data while 61 percent noted growth by account data. Sales trends reports came in at third with 60 percent, followed by reorder/replenishment data at 53 percent.
“Businesses are reaching greater digital maturity and report having an established data and technology practice for optimizing sales strategy and distribution,” the report’s authors said. “Brands are currently leveraging sales data and growth rates to improve business performance but still have a desire for better, more accurate data around sales, sell-through and live reporting tools.”
In the report’s overview, the authors said this year is marked by greater digital maturity and stability in wholesale trade. The researchers said they’re seeing more brands using data and “becoming more sophisticated in their digital practices to drive strategic business growth.”
“While challenges of the past persist, such as concerns over inflation, market instability and overcoming operational challenges, brands are doubling down on growing their existing retail accounts and finding new retail partnerships,” the report stated.
