Industry Analysis & Industry Trends
The Computer and Packaged Software Wholesaling industry is expected to increase during the five years to 2014, as a result of growing demand for laptops and tablets. However, while demand for computers, computer accessories and software is growing, revenue for wholesalers has been hindered by the practice of wholesale bypass, in which manufacturers forego wholesale distributors and sell directly to end users or resellers. In the five years to 2019, revenue will benefit from growth in unit sales of computer-related products, brought on by the economic recovery. In addition, wholesalers will also benefit from computer manufacturers' increased productivity as a result of consolidations and technological innovations... purchase to read more
Industry Report - Starting a New Business Chapter
There are low, yet increasing, barriers to entry in this industry. Large distributors have an advantage because of their access to finance, economies of scale and stronger vendor relationships. Major vendors typically require that wholesalers attain minimum annual sales of the vendor's products. Unit costs, however, including costs associated with warehousing and electronic ordering and information delivery systems, can fall as sales volumes increase.
New entrants need to obtain distribution agreements from manufacturers and other suppliers, which may often require them to have significant distribution capacity. They would need to fund new systems and infrastructure, inventories and debtors, particularly when building a viable sales base... purchase to read more