What Is Wholesaling?

Wholesalers are commercial organizations that purchase products from manufacturers and then resell them to retailers, industrial users, or various non-profit organizations. They do not directly serve individual consumers.

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Wholesalers buy products from manufacturers and resell them to

(1) Possession of a large amount of goods.

(2) Only sell in large quantities and do not provide

1. Sales are more effective . The sales force of wholesalers enables producers to reach more small and medium customers at a lower cost. Because wholesalers have a broader reach, they often gain more buyer trust than producers.

2. Effective distribution products. Through extensive contacts with different manufacturers, wholesalers can efficiently purchase and configure multiple products; quickly supply products to

1. General commodity wholesalers. A wide range of goods, a wide variety of products, wholesale targets

Choosing a cooperative wholesaler is of great importance to the market development of the company's products. Consider the following:

1,

The main functions of the wholesaler are as follows:

• 1. buy

The purchase activity of the wholesaler is the starting point of the commodity circulation process. With the wealth of experience and market forecasting knowledge, the wholesaler anticipates the market demand for certain commodities, organizes the supply of goods in advance, and supplies customers at any time, so that the retailer can save the stock Time, manpower, and cost; for producers, marketing costs can also be saved because the wholesaler purchases a larger batch.

• 2. Distribution

The function of distribution is equally effective for producers and retailers. Generally, producers are unwilling to sell in small quantities from the perspective of transportation management and management costs; retailers are limited in terms of capital, unable to purchase in large quantities, limited to manpower, and it is impossible to buy from each producer. Wholesalers can either make large purchases from producers or divide the supply into smaller units for resale to retailers.

• 3 transport

Product transportation is the product's position shift in space with the help of power, and is an important link in the circulation of goods. Wholesalers play a centralizing, balancing and spreading role in purchasing, distribution and promotion activities, and facilitate the exchange of goods. After purchasing goods, wholesalers also need to take responsibility for organizing product transportation, and organize product transportation in a timely, accurate, safe, and economical manner, so that producers can avoid backlogs and retailers reduce inventory.

• 4 Store

Product storage is a kind of "stagnation" in the circulation of commodities, and it is also a condition for the continuous circulation of commodities. Wholesalers can make full use of warehousing equipment to create time utility, so that retailers can obtain small quantities of stock at any time. The wholesale storage can adjust the contradiction in time between market supply and demand and play the role of "reservoir".

• 5. Financial intermediation

When a retailer implements credit purchases from wholesalers, it can reduce operating capital requirements. Wholesalers with strong financial resources can also use prepayment to subsidize producers.

• 6. Risk burden

After the producer sells the product to the wholesaler, if the product is not satisfied with the product due to wear, loss of fashion, and other reasons, the customer is required to return the product; if the product is reduced in price, it will bear the price loss. All these business risks are also transferred to the wholesaler.

• 7. service

Provide retailers with advertising, advertising, pricing, and business information.