Understanding Wholesale Trade
Wholesale trade refers to the sale of goods in bulk quantities to resellers or other businesses. It is an essential part of a company's marketing and distribution strategy. Wholesalers handle physical distribution tasks like warehousing and inventory management and provide regular delivery services. This efficiency reduces the risk of holding large inventories for both producers and buyers.
Details of Wholesale Trade
The wholesale trade sector includes the sale of goods produced by various industries like manufacturing, agriculture, and mining. Wholesalers act as intermediaries, facilitating the resale of goods to other wholesalers or retailers. They also manage the purchase or sale of raw materials and durable consumer goods.
Wholesalers usually operate from warehouses or offices and primarily sell goods to other businesses, not to the general public. They form business relationships with vendors and retailers as part of the supply chain. Wholesalers are vital in meeting consumer demands by supplying merchandise to retailers and maintaining long-term business relationships.