Wholesaling involves the sale of goods or services to businesses or individuals who will resell them rather than directly to consumers. Wholesalers differ from retailers in that they focus on business customers rather than consumers, deal in larger quantities, and are subject to different regulations. There are various types of wholesalers including merchant wholesalers, full-service wholesalers, brokers, agents, and specialized wholesalers. Wholesalers perform important functions like selling, transportation, financing, warehousing, and providing market information for businesses.
Wholesaling involves the sale of goods or services to businesses or individuals who will resell them rather than directly to consumers. Wholesalers differ from retailers in that they focus on business customers rather than consumers, deal in larger quantities, and are subject to different regulations. There are various types of wholesalers including merchant wholesalers, full-service wholesalers, brokers, agents, and specialized wholesalers. Wholesalers perform important functions like selling, transportation, financing, warehousing, and providing market information for businesses.
Wholesaling involves the sale of goods or services to businesses or individuals who will resell them rather than directly to consumers. Wholesalers differ from retailers in that they focus on business customers rather than consumers, deal in larger quantities, and are subject to different regulations. There are various types of wholesalers including merchant wholesalers, full-service wholesalers, brokers, agents, and specialized wholesalers. Wholesalers perform important functions like selling, transportation, financing, warehousing, and providing market information for businesses.
• Wholesaling includes all the activities in selling
goods or services to those who buy for resale or business use n ka r • It excludes manufacturers th i Sa and farmers e e p D engaged primarily in Dr are because they production, and it excludes retailers. Differences between wholesaler & retailer
• Wholesalers (also called distributors) differ
from retailers in a number of ways. 1) Wholesalers pay less attention to promotion, n ka r th i S a atmosphere, and location because they are D ee p dealing with business customers rather than final Dr consumers. 2) Wholesale transactions are usually larger than retail transactions, and wholesalers usually cover a larger trade area than retailers. 3) Wholesalers and retailers are subject to different legal regulations and taxes. Major wholesaler types 1. Merchant wholesalers: Independently owned businesses that take title to the merchandise they handle. r a n k a h 2. Full-service wholesalers: t i S Carry stock, maintain ee p D credit, make deliveries, a sales force,r offer D provide management assistance. 3. Limited-service wholesalers: sell a limited line of fast-moving goods to small retailers for cash. Contd… 4. Brokers and agents: • Brokers bring buyers and sellers together and n ka assist in negotiation; they are paidrby the party hiring them—food th i Sa brokers, real estate e e p Dr D brokers. brokers, insurance • Agents represent buyers or sellers on a more permanent basis. Contd…. 5. Manufacturers’ and retailers’ branches and offices: Separate branches and offices dedicated to sales or purchasing. n ka r 6. Specialized wholesalers: th i SaAgricultural assemblers (buy D e e p the agricultural output of Dr many farms), petroleum bulk plants and terminals (consolidate the output of many wells), and auction companies (auction cars, equipment, etc., to dealers and other businesses. Wholesaler functions
• Selling and promoting • Transportation
• Buying and • Financing n ka r assortment building • Risk th i S a bearing p • Bulk breaking Dee • Market information D r • Warehousing • Management services and counseling