Wholesaling
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Wholesaling or distributing is the sale of goods or
According to the
Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products.[3] However, with the advent of the internet and e-procurement there is an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia. Some of the most popular B2B marketplaces for wholesale buying and selling are Tradewheel.com, Alibaba, and Go4WorldBusiness. The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs.
In the banking industry "wholesale" usually refers to wholesale banking, providing tailored services to large customers, in contrast with retail banking, providing standardized services to large numbers of smaller customers.
In real estate, wholesaling is the act of contracting to purchase real property, and assigning that contract to an investor.
Taxes
Often, in the United States, wholesalers are not required to charge their buyers sales tax, if the buyer has a resale license in the state the wholesaler is located. Out-of-state buyers are not charged sale tax by wholesalers.[4]
Direct selling
The alternative to selling wholesale to distributors or retailers is to sell retail[5] either through company-owned stores or online. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers.[6] Direct selling is a business model wherein sellers sell the goods directly to the end customer.[7]
See also
- Business-to-business
- Cash and carry (wholesale)
- Distribution (marketing)
- Jobbing house
- Supply chain
- Supply network
References
- JSTOR 1247896.
- ^ "United Nations Statistics Division – Classifications Registry". unstats.un.org. Archived from the original on 21 March 2018. Retrieved 8 May 2018.
- ^ Chandler, A. D. (1994). Scale and scope The Dynamics of Industrial Capitalism. Cambridge, Massachusetts: Belknap Press of Harvard Univ. Press. p. 29.
- ^ Michael Gravette, wholesaler for 32 years.
- ^ "Als Lieferant mitmachen" (in German). eu-lieferanten.de. Archived from the original on 11 April 2013. Retrieved 9 April 2013.
- ^ Mount, Ian (6 March 2013). "Clothing Companies Trying to Find More Direct Paths to Customers". The New York Times. Archived from the original on 7 March 2013. Retrieved 7 March 2013.
- ISBN 978-1-3501-1340-4. Retrieved 24 November 2021.