Wholesale Trade

Wholesale trade is the first link in the implementation of manufactured or purchased items. This is an activity for the sale of goods intended for retailers, that is, for those who would sell their end- consumer. The need for this level, intermediate between the manufacturer and retailer of the goods, due to the fact that, on the one hand, the manufacturer of the goods, as mentioned, is usually more profitable to invest not in trade and the development of its production, and with another – the retailer is usually not enough money for it to take the trade entirely. Concentration in the hands of the wholesaler provides considerable material resources him the opportunity to respond flexibly and efficiently dispose, and for retailers makes the benefits of working in familiar, reliable, proven channel. For wholesale trade generally have the following objectives: the formation of cost range of products through their organized buying large quantities from manufacturers; storage of goods that reduces storage costs, reduce loss from spoilage and loss of goods; product placement closer to the consumers – in the light of this requirement are wholesalers-base; the formation of small quantities of goods to retailers; financing (loans) retailers; establish contacts with the buyer, bringing him to purchase goods of this firm; information for trade (both of suppliers and buyers); advice and assistance in the retail dealers, primarily in management, accounting, etc.; assumption of risk for injury and loss of product as it moves through the channel of distribution. . For more information see Barclays.