The topic of my blog is, Wholesale trade. I'm sure, you guys are well aware of the term trade. Wholesale trade is one of the types of trade. Wholesales trade is also known as wholesaler. Wholesaler is a trade, who trade in large scale. Wholesale is a trade in which, wholesaler purchase goods from producers and then sell it to small retailers or some of the wholesalers sell directly to the ultimate consumer. Wholesaler is also the bridge between producers and retailers. Well, let's take a definition from Wikipedia of wholesale trade, so you can clear your concept about wholesale trade.
"Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer."
Properties of wholesale trade
Wholesale trade has many properties like fix price, advertisement or could be more of it, but I'm going to mention a few of them here.
(1) Buying and selling of goods:
Wholesalers buy large amount of goods from producers. Wholesalers then sell them to retailer or some of them directly sell it to ultimate consumers. Walmart could be a example of a wholesaler, who sell directly to the ultimate consumer. Walmart does not sell goods to the retailer, Walmart sell directly to the consumer.
(2) Fixed price and profit:
Wholesaler could have fixed price, only reason businesses have high prices of goods is due that they have small amount of goods to sell. While wholesalers have large amount of goods to sell, even if they have profit of couple of buck on each good still they can earn a huge profit, even if they don't increase the prices of goods.
(3) Credit plus cash sale facility:
Wholesalers can sale goods on credit and also on cash. Some of the loyal customers of the wholesalers can easily get goods on credit while others can get goods on cash. And if some customer has purchased more than ten or fifteen times, then wholesalers offer them goods on credit.
(4) Marketing campaign:
Wholesalers have to go for marketing campaign. Wholesale trade have to put much effort in marketing to attract a lot of retailers or consumers for the purchases of goods. Wholesalers don't spent on marketing, but still they have to spent some amount on marketing.