3 Wholesale Metrics Your Brand Needs to Pay Attention To

Same-store growth, average order value, and acquisition cost. 

For brands already in the wholesale space that want to ensure they continue to see year-over-year growth, these are the key metrics you want to pay attention to. 

Prioritize these areas and you’ll not only build stronger, more profitable relationships with your retailers, you’ll also position yourself well into growing your presence in the wholesale market. 

The Importance of Same Store Growth

Securing your first account is a significant hurdle in wholesale, but keeping and expanding within that store is where the real opportunity lies. 

Since stores have limited floor space, it’s vital to prioritize growing your presence in each store, rather than solely focusing on opening new accounts. Year-over-year, you should aim to take up more square footage by introducing a broader range of products. 

So, if your brand started with accessories, consider expanding into footwear and apparel as well.

This incremental growth within the same store not only increases your visibility but also strengthens your relationship with the retailer. 

By consistently showing up with fresh, relevant products, you reinforce your value to the retailer, which can lead to a larger footprint in their store.

Increasing Average Order Value (AOV)

The effort required to open an account and fulfill an order remains the same, whether the order is worth $1,000 or $3,000. 

By increasing AOV, you can significantly boost profitability with minimal additional effort. Higher AOV also indicates that the retailer trusts your brand and is confident in the products you offer.

To grow AOV, ensure you’re expanding your product mix thoughtfully and strategically. By introducing complementary products or upselling, you encourage larger purchases, which drives up your overall sales metrics. It's a cycle that benefits both your brand and the retailer, as they see consistent success with your products.

We've built our Customer Dashboard with AOV in mind, as it allows you to view your retailer's historical bookings, so you can be better informed on how you want to build your assortments, to ultimately lead to higher AOV. 

Focus on Retention Over Acquisition

In wholesale, retaining existing accounts is often more profitable than acquiring new ones. 

Customer acquisition costs—often linked to expenses like trade shows and marketing—can be substantial. Once you've secured a retailer, the goal should be to retain and grow that account. You can avoid churning customers by continuously providing value through new and exciting products, personalized service, and strategic replenishments. 

Here's a return strategy you can steal. We knew a brand that allowed a shop to return an entire order BUT with the agreement that they could ship the shop another order, this time with items they thought would be more likely to sell.  

If the new shipment didn’t sell, they’d take the return again. 

This strategy preserved their existing floorspace at the retailer and the new shipment would have a higher likelihood of selling. 

This demonstrated confidence in their product line and reduced the retailer's risk, making them more willing to maintain and expand their presence in their store.

By mitigating the risks for retailers, you not only retain valuable floor space but also build long-term relationships that are less likely to churn.

Remember, the goal is not just to get your products into stores but to become an indispensable part of their product mix, year after year. 

Emphasize growth within existing accounts, offer products that meet evolving consumer demands, and create a win-win partnership that ensures your brand’s long-term success in wholesale.

If you want to make it easy to gain insights on what your buyers have historically booked so you can cater and personalize your assortments for them to improve your retention, then check out our Customer Dashboard feature.