Wholesale Market Dynamics in Iceland

With a total population of around 350,000 to 400,000 inhabitants, it may sound paradoxical that wholesalers live in Iceland. However, the population is concentrated in the capital Reykjavik alone. This offers the opportunity to buy or import products at wholesale prices and then pass them on to retail outlets. There are suppliers for the industry who are also active in wholesale. Trade is well developed in the country and can grow in the future.

Importers Have to Buy in Bulk for wholesales in Iceland

The companies in Iceland that handle imports for the final distribution of imported goods throughout the country are, of course, wholesalers. They have to consolidate their orders and import in large quantities in order to benefit from the price advantage. Where competition is fierce, profit margins tend to be small. Every Icelandic krone saved helps. The storage of goods and their subsequent transport inland can involve costs. However, this pays off for larger quantities.

There Are Wholesalers in Product Groups

Due to the convenience of trade, the wholesale business in Iceland is divided into product lines. This is how you can find wholesale importers for clothing. Clothing and fashion are important import items in Iceland. 66North and NTC are two of these wholesale companies in Iceland that deal with the import of clothing. They source their products mainly from European countries. The companies can benefit from certain tariff concessions for imports from the European Economic Area (EEA). Iceland is a signatory state of the EEA.

Food is another important area in which Icelandic wholesalers import and distribute locally. Breakfast cereals, drinks, chocolate, fruit juices, nuts, frozen foods such as crisps, tea, beans, sweets and snacks are just some of the items that are imported and find their way into supermarkets and retail outlets. Nathan & Olsen is a name you will come across frequently in wholesale circles in Iceland.

Pet products are another product category that wholesalers import to Iceland. There are also wholesale companies in Iceland that import pharmaceutical products from all over Europe and distribute them in the country.

It is important to know that some of the wholesalers also operate retail shops, especially in Reykjavik.

The Distribution Backbone is Strong

There is no railway system in Iceland. Freight has to be transported either by road or by air. Ships are also used to transport goods from one harbour to another. The companies involved in wholesale trade in Iceland use all available means to distribute the products they have either imported or purchased locally from the manufacturers. Some of them own vehicles that they use to transport their products to their customers. Garri ehf is a food wholesaler based in Reykjavik. The company has a warehouse in the capital and six vehicles to deliver to 3,300 customers across Iceland.

The retail trade takes place via shops of various formats, especially in the food sector. You will hear names like Bonus, Krona, Netto and so on. Each of them has its own retail policy. Some of them offer their products at low prices, while others have spread far and wide across the country to bring the products to the people. Price is not necessarily the problem here. Some of them are large and others are smaller. The concept of hypermarkets has not yet caught on with a single large operator, Hagar.

Wholesale in Iceland has the potential to thrive and grow, strengthening the country's economy in the process. Wholesalers can place bulk orders and gain a price advantage. The product can reach a maximum number of people through an effective distribution network. This becomes cyclical and trade booms.

If you require any type of assistance in Iceland, contact Swapp Agency.