What does wholesale mean in trade

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Wholesale trade is one of the oldest types of economic activity, which originates in Ancient Egypt and the Roman Empire. This fact is confirmed by archaeological finds, indicating that wholesale and retail trade was indeed conducted in the mentioned territories. It should not be ruled out that this type of activity existed even earlier, but there is no evidence of this to date.

If in retail trade the service/product is directly transferred to the consumer, then in the B2B market everything is a little different: before reaching the end user, the product goes through an additional stage - wholesale sales. That is, the goods are delivered to organizations that are engaged in either its sale to the end consumer or resale malaysia mobile phone numbers database to other companies. In this article, we will tell you in as much detail as possible about the features of wholesale turnover.

Most often, wholesalers are trade or trade and manufacturing organizations. By the way, goods are delivered to retail outlets from a central (distribution) warehouse, which in this case can be considered an "internal" wholesaler. The operating principle of these centers differs from the deliveries of online markets (last mile stores).

Transport and equipment in the warehouse

Source: unsplash.com

Organizations that sell goods wholesale often work with several large companies (for example, distributors, factories or suppliers of luxury products). A wholesaler differs from a distributor in that it offers a wide range of interchangeable or products from different suppliers. An organization that supplies equipment from the DPRK can also purchase similar products from other foreign companies (Israel, Poland, America, etc.) and import them into the territory of the Russian Federation. The company also has no restrictions on the sale of the goods it produces.

The basic functions of wholesalers are to collect, store and distribute products. That is, the company imports goods, stores them in its own warehouses, and then sells them to other companies, thereby moving the product to the final point of sale - the consumer. Sometimes wholesalers work with retail buyers themselves, but this approach is not very successful, since sales in such a situation can only make up 20% of the total turnover.

From all of the above, it follows that wholesalers act as intermediaries between the manufacturer and the end consumer. Many participants in the sales market (especially manufacturing and distribution companies) are interested in cooperation with companies engaged in wholesale sales.

This interest is due to the fact that when working with a wholesaler, they no longer need to be torn between hundreds of retail firms (there is no need to deal with the registration and delivery of orders, knocking out money and other difficulties that cannot be avoided when working with the "last mile"). Manufacturers/distributors only need to focus on a few serious customers.

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