How the War In Ukraine is Causing Rising Oil Prices That is Affecting B2B Trade
The invasion of Ukraine by Russia has had a wide-ranging impact on the global economy. To distance themselves from the instability, many countries and organizations have imposed sanctions and severed ties with Russia. As a result, there have been shortages and financial problems.
Because Russia is one of the world’s top oil producers1, the breakup with the country has naturally resulted in an increase in global oil prices.
From the wholesale to the consumer level, rising gas prices are affecting everyone.
The fact is that Wholesalers must either bear the costs of production and delivery or raise their pricing to compensate for the losses. While absorbing costs may keep customers happy, it will have a negative impact on your bottom line. When wholesalers raise their prices, the increase is passed on to the retail price of each individual item.
Let us now look at how rising oil costs are influencing B2B trading and how wholesaler suppliers can deal with the situation in this post.
What Should B2B Sellers Do to prepare For Such Times?
Many countries now depend on emergency oil reserves to help combat rapidly rising gas costs. even though this is a good step toward balancing fuel prices, it is only a temporary measure that will last for a few months probably six.
It is not certain to tell if tapping emergency oil supplies will simply serve will actually solve the problem. For this, it is a good idea for B2B sellers to plan as much as possible for these uncertainties.
Here are a few strategies B2B sellers can use to prepare for the unknowns that come with increased gasoline prices.
Consider Local Trade
Leaning on local trade partners is for sure one of the best approaches to keep prices down while transportation rates are rising. Shipping charges will be lower if you’re conducting business with people close to you because the things won’t have to travel far.
If you’re a manufacturer, for example, and you can get raw materials locally for a reasonable price, look into it. You could offer incentives to local clients that wish to buy from you as a wholesaler to reduce the distance you have to transport.
Find local trader on baso. Baso is a B2B and B2C website to market and sell for free in Ghana
Keep Your Customers in The Know
The lack of predictability is one of the greatest concerns for many B2B dealers in a current volatile global environment. The only thing retailers can do to combat this is keep open lines of communication with their customers.
It’s a good idea to send out a statement or contact individual consumers to let them know that there may be some unexpected complications. Reassure them that you are trying your best to resolve these concerns and that you will keep them informed as events unfold.
Also, let your consumers know that you’re always ready to answer any queries they may have.
Use Pre-ordering to Your Advantage.
To make logical business decisions, you need to allow your customers to pre-order goods. Stocking up on inventory that will go unpurchased isn’t an issue when you know exactly what your clients want to buy. This way, you won’t have to pay to have items delivered that you don’t need.
This is also true for wholesalers that produce their own items. If you know you’ll use a particular material, order it as soon as possible to lock in costs before they rise.
Improve Shipping Procedures.
Now is the moment to optimize your shipping practices if you’ve been thinking about it. Look for areas where you may save money on shipping by being smarter with your shipping practices.
The cost of shipping products is heavily influenced by the weight and volume of the items.
6 You might save a lot of money if you can reduce the weight of your packing or reorganize it in a way that allows you to put more in a smaller space.
