Wholesale

Wholesale trade is any activity that sells goods or services for resale (commercial segment) or use in production/business (professional segment) or for public benefit (public segment).

Simply put, wholesale is not “how much,” but “to whom.”

Wholesale buyer (client of a trading enterprise) is a legal or natural person purchasing goods and services necessary for his commercial or other professional activities.

Depending on corporate policy and negotiations, the wholesaler:

• can act as a supplier or seller of goods (cement supplier , wholesale flower warehouse) ,
• determines the criteria for compliance with the wholesale batch (shipment amount) ,
• may not sell smaller quantities of goods (it is unprofitable to deliver an incomplete railway car) ,
• have convenient conditions for small, medium and large wholesale.

In a simple case, the purchase/sale agreement does not regulate the further use of the purchased goods. They can be resold.

Traditionally, wholesalers were closer to the markets they supplied to than to the source from which they obtained products. However, with the advent of the Internet and e-procurement, there is a growing number of wholesalers located closer to manufacturers in China, Taiwan and Southeast Asia.

Functions of wholesale trade in the distribution of goods

The most important tool for selling large quantities of goods is for manufacturers. Depending on the segment, the distribution of products from the manufacturer occurs along a certain chain, in which the final consumer is the consumer or organization.

1. Manufacturing plant ,
2. Wholesale trading companies,
3. Markets, Hypermarkets ,
4. Retail Stores ,
5. Construction crews,
6. Private individuals

Dealer networks allowed manufacturers to conduct wholesale trade centrally. Under a dealer agreement, enterprises receive regular supplies without the right to resell, possibly with established RRPs (“recommended retail prices”).

Legislative definition and sale to individuals

“ Wholesale trade  is a type of trading activity associated with the acquisition and sale of goods for use in business (including for resale) or for other purposes not related to personal, family, household and other similar use;”