Concept in Definition ABC
Miscellanea / / July 04, 2021
By Florencia Ucha, in Nov. 2010
The concept that concerns us in this review It has a special use in the commercial plane, since it is one of the most important elements at the request of the Commerce; names the businessman or trade that sells wholesale, in the case of the merchant, and in the case of a trade we will say that it is bought and sold wholesale, that is, in large quantities.
Trader or business who buy and sell wholesale, in large quantities, and differ from retailers who do the opposite
This is the main and salient characteristic of the wholesaler to sell large volumes of products and not by unit as is the case with merchants or retailers.
It is designated wholesaler to the trader or wholesaler. The wholesaler is one of the components of the so-called distribution chain, in this case, the company will not make contact with him Username final or final consumer Instead, you will delegate this task to a specialist.
Intermediary between the manufacturer and the final consumer
The wholesaler is somehow the
intermediary between the one who manufactures a product and the final consumer of that product. That is, the wholesaler or wholesale distributor, as it is also called, buys from the producer, manufacturer or to another wholesaler, and then you will sell to a manufacturer, another wholesaler, a retailer, but never to the consumer final. In other words, wholesaler and final consumer almost never interact, it could be said.However, it is a reality that currently wholesalers have lost ground to the large companies of distribution and retail associations, which are assuming some functions that were previously exclusive of the wholesaler.
Meanwhile, this new scenario has led many wholesalers to decide to twist their way a bit and then it is possible to find wholesalers who do. They sell directly to the final consumer, although with some conditions, for example that he must buy a minimum amount of products to be able to access at the special wholesale price rate that this type always offers of course to its natural buyers, such as shops or dealers.
Wholesale classes
There are different types of wholesalers, depending on your location They may be origin wholesalers, or destination wholesalers and another criterion of classification is that of the links they have with other wholesalers, which may be independent or purchasing centers.
Mainly, the wholesaler specializes in issues such as: handling large sales volumes, infrastructure adequate to respond to the aforementioned sales volume, logistical capacity to distribute the goods and credit control to its client portfolio.
The wholesaler's business secret: great storage power and logistics capacity
Precisely in the availability of large warehouses and sheds to be able to store a large amount of merchandise and the logistical capacity, that is, to be able to distribute effectively among its customer portfolio the products is that it is basically the secret of the success of the merchants or establishments wholesalers.
Because of course, the greater amount of merchandise they are able to store and at the same time distribute among their buyers, they will always keep active the circle of collection and sales.
And with regard strictly to the profits of this sector, we must mention that in the chain, as we have already pointed out, the wholesaler is in an intermediate position since they buy the products directly to the manufacturer or to another wholesale distributor, to finally sell it to other businesses that finally sell to the last one in the chain, which is the consumer final.
This allows them to have the possibility of maximizing their profit margins as a consequence that when buying in large quantities the products always achieve discounts in prices.