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Wholesaling



wholesale – оптова торгівля retailer – роздрібний торговець indirect channels — непряма система (збуту) merchant middlemen – торгові посередники deal in – торгувати manufacturer - виробник take title – мати право власності lot – партія (товару) break bulk – розвантажувати e-procurement – поставка через Інтернет premises – приміщення, володіння ship – відвантажувати, перевозити

 

Wholesaling is the sale of goods to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.

According to the United Nations Statistics Division, "wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, and involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies.

Wholesaling is a part of marketing system. It provides channels of distribution which help to bring goods to the market. Generally, indirect channels are used to market manufactured consumer goods. It should be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.

Most of the wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both and don't take title to the goods they deal in. These agents receive commissions - a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. As wholesalers handle a large assortment of items from numerous manufacturers, they reduce the problem of both manufacturer and retailer.

Wholesalers often physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots. While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.

Traditionally wholesalers were closer to the markets they supplied than the source they got the products from. However, with the arrival of the internet and e-procurement there are an increasing number of wholesalers located nearer manufacturing bases. Many of them offer drop shipping services to companies and individuals. Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.

 

1 What is wholesaling? 2 What does it provide channels for? 3 What do agent middlemen do? 4 How do wholesalers make the distribution process simple? 4 What is drop shipping? What advantage does it have?

 


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