Industry Analysis & Industry Trends
Similar to many other wholesaling industries, traditional merchants in the Fish and Seafood Wholesaling industry face stiff competition from manufacturers' sales branches and offices (MSBOs) of vertically integrated fishing or processing companies. Many of these larger companies sell their products directly to retailers and end customers, eliminating the cost of paying a merchant wholesale middleman in a practice called wholesale bypass. Despite wholesale bypass and competition, the industry has grown over the past five years due to several positive factors. As the economy continued to stabilize and grow, per capita disposable income increased, giving more consumers the means to purchase seafood, which is often viewed as a more expensive protein option... purchase to read more
Industry Report - Starting a New Business Chapter
The major barriers to entering the Fish and Seafood Wholesaling industry include the costs of establishing a warehouse and distribution system and the difficulties that can be encountered when trying to forge business relationships with key upstream and downstream clients.
A fish and seafood wholesaler usually invests a considerable amount of capital into distribution logistics such as trucks, refrigeration and database management. Costs can increase if an electronic inventory system is installed such as computerized tracking software that uses global positioning, radio-frequency identification tags and barcoding... purchase to read more