The Top Challenges Facing the Wholesale Trade in Germany

The wholesale trade in Germany is a vital sector of the economy, generating billions of euros in revenue per year. According to the Federal Statistical Office, the number of companies in wholesale trade (excluding trade in motor vehicles) in Germany has fallen continuously in recent times, most recently to around 135,000 in 2020. Turnover in wholesale trade also dropped this year to approximately 1.24 trillion euros.

SMEs represent around 99 % of all companies in wholesale in Germany. Among them, speciality wholesaling, also called specialist wholesaling, focuses on a specific product group and does not offer a wide range of products, as with assortment wholesaling.

For example, an electrical wholesaler focusing on components and cables would be a specialist wholesaler. With thousands of products in its portfolio and thousands of customers, this type of wholesaler depends strongly on its salesforce, sales engineers and consultants.

This industry and its specialists face many challenges, impacting their actual chances of survival – and many are dying out. There have been 34.000 fewer wholesalers in Germany since 2010.

In this blog post, we will explore the top problems confronting the wholesale trade in Germany. We will also discuss how companies can use AI and advanced technologies such as predictive analytics software, predictive customer analytics, B2B e-commerce, and data mining ERP to overcome them.

Finding the products with the highest purchase probability in the portfolio

One of the most significant challenges facing specialists in wholesalers in Germany is identifying which products are most likely to sell. With such a vast array of available products, it can take time to determine which ones to stock, offer, and avoid.

Predicting cross-selling and demand is where predictive analytics software comes in. Predictive sales software is one of the most useful B2B wholesale software.

By analyzing customer behaviour, sales patterns, and market trends, predictive analytics software can identify which products are most likely to sell, allowing wholesalers to optimize their inventory and focus on products that are more likely to generate revenue. The software also increases sales by recommending the products with the highest purchasing probability.

According to a German Wholesale and Foreign Trade Association study, the essential products in the wholesale trade in Germany include consumer goods, food, and technical products. Deciding stock levels, cross-selling offerings and bundles with technical articles require special technical knowledge and experience.

Prioritizing the customers with the highest overall purchase probability

Another major challenge facing the wholesale trade in Germany is identifying which customers are most valuable to the business. With so many customers, it can take time to determine which ones to prioritize.

Predictive customer analytics and ERP Data Mining can help here as well. By analyzing customer data, predictive customer analytics can identify which customers are most likely to make repeat purchases, allowing wholesalers to focus their efforts on these individuals and build stronger relationships with them.

B2B sales personnel can also use this information to optimize their sales strategies and increase their chances of closing deals with these high-value customers. The main difference between predictive customer analytics and ERP Data Mining is whether the company employs data analysts or scientists to create the predictions and insights.

B2B wholesale software – using AI and advanced technologies to compete

AI and advanced technologies can help wholesalers in Germany to overcome the challenges they face by providing valuable insights into customer behaviour, wholesale customer data, and market trends.

Using predictive analytics software and predictive customer analytics, wholesalers can identify which products are most likely to sell, which customers are most valuable, and which families are most appropriate for specific customer segments. They can also find the optimal final price for a particular customer and product combination.

AI helps wholesalers to optimize their inventory, target their offerings, and adjust their pricing strategies, increasing competitiveness and profitability. Additionally, B2B e-commerce can help wholesalers to reach new customers and expand their market reach, while ERP data mining can streamline operations and improve efficiency.

 
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The Top Challenges Facing the Wholesale Trade in Germany- Conclusion

The wholesale trade in Germany is a vital sector of the economy that generates billions of euros in revenue per year and employs many people. Specialist wholesaler. Although critical for the economy, 34.000 wholesales disappeared in the ten years before 2020.

There are several reasons behind this unfortunate trend. In the case of specialist wholesales, several challenges are putting the nails in their coffin, for example, identifying the products with the highest purchase probability in the portfolio and prioritizing the customers with the highest overall purchase probability.

By using AI and advanced technologies such as predictive analytics software, predictive customer analytics, B2B e-commerce, and ERP Data Mining, wholesalers can overcome these challenges and improve their chances of success.

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Further Read (german language):
 

Statista (2023): Anzahl der Unternehmen im Großhandel in Deutschland in den Jahren 2002 bis 2021