Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the to retailers Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer", to industrial, commercial, institutional, or other professional business A business is a legally recognized organization designed to provide goods or services, or both, to consumers, businesses and governmental entities. Businesses are predominant in capitalist economies. Most businesses are privately owned. A business is typically formed to earn profit that will increase the wealth of its owners and grow the business users, or to other wholesalers and related subordinated services.[1] In general, it is the sale of goods to anyone other than a standard consumer.
According to the United Nations Statistics Division The United Nations Statistics Division , under the United Nations Department of Economic and Social Affairs (DESA), serves as the central mechanism within the Secretariat of the United Nations to supply the statistical needs and coordinating activities of the global statistical system. The Division is overseen by the United Nations Statistical, "wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.[2] While wholesalers of most products usually operate from independent premises, wholesale marketing The consumption and production of marketed food are spatially separated. Production is primarily in rural areas whilst consumption is in urban areas. Agricultural marketing is the process that overcomes this separation, allowing produce to be moved from an area of surplus to one of need. Food reaches the consumer by a complex network, involving for foodstuffs can take place at specific wholesale markets where all traders are congregated.
Traditionally wholesalers were closer to the markets they supplied than the source they got the products from.[3].
However, with the advent of the internet and E-procurement E-procurement is the business-to-business or business-to-consumer or Business-to-government purchase and sale of supplies, Work and services through the Internet as well as other informations and networking systems, such as Electronic Data Interchange and Enterprise Resource Planning there are an increasing number of wholesalers located nearer manufacturing bases in Mainland China Mainland China, Continental China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China on the Asian mainland. This term excludes the PRC Special Administrative Regions of Hong Kong and Macau, Taiwan Taiwan, also known as Formosa , is an island situated in East Asia in the Western Pacific Ocean and located off the southeastern coast of mainland China. It has comprised most (99%) of the territory of the Republic of China (ROC) since the 1950s. The term "Taiwan" has also become a commonly used alternative name both domestically and and South East Asia like Chinavasion Chinavasion is an ecommerce company registered in Hong Kong, selling consumer electronics to customers all over the world from a warehouse operation in Shenzhen, China, Salehoo SaleHoo Group Limited is a New Zealand based e-commerce company that manages SaleHoo.com, a website specializing in global trading between wholesalers and retailers. It is one of the largest wholesale directories on the Internet and one of the first to offer international wholesale contacts and Modbom, many of which offer drop shipping Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses, the retailers make their profit on the difference between the services to companies and individuals.[4]
Taxes
Often wholesellers are not required to charge their buyers sales tax A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may, though sometimes they may be required to (or may per discretion) charge a special wholesale tax.[5]
See also
- Distribution (business) Physical distribution is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user
- Retail Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer"
- Supply chain A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain
- Supply network A supply network is a pattern of temporal and spatial processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of products. It comprises the general state of business affairs in which all kinds of material are transformed and moved between various value-add points to
- B2B Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G)
References
- ^ WTO - World Trade Organization
- ^ UNSTATS - United Nations Statistics Division
- ^ Chandler, A. D. (1994). Scale and scope The Dynamics of Industrial Capitalism. Cambridge, Mass.: Belknap Press of Harvard Univ. Press.. pp. 29.
- ^ http://top50chinadropshippers.com/comparison/
- ^ Federal Manufacturers', Wholesale, and Retail Sales Taxes from TaxAnalysts.org
Categories: Commercial item transport and distribution This category comprises the transport and distribution of cargo, goods, and other items of commerce. Although many of the articles within this category also deal with transporting people, passenger transportation is outside the scope of this category | Distribution, retailing, and wholesaling Categories: Marketing | Supply chain management | Economics of service industries | Marketing Categories: Business | Service industries | Business economics | Supply chain management Categories: Management | Production and manufacturing |
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Wed, 08 Sep 2010 09:07:07 GMT+00:00
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