SLO

Wholesale and retail trade

Wholesale

The 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. A wholesaler is a businessman who specializes in performing wholesale activities. The term “wholesaler” applies to all merchant middlemen who purchase and sell the goods in bulk. They take title of goods and resale the goods at a profit with commission. The term “Wholesalers” has been defined by many eminent scholars as under:

  • American Marketing Association: – “Wholesalers buy and resell merchandise to retailers and other merchants and to industrial institutions, and commercial users, but do not sell in significant amounts to ultimate consumers.”
  • W. Cundiff and R.R. Still: – “Wholesalers buy and sell merchandise to the retailers and other merchants and not to the consumers.”
  • Morris E. Hurley: – “Wholesalers are marketing middlemen who occupy a position midway between retailer and the producer or manufacturer.”
  • Evelyn Thomas: – “A true wholesaler is himself neither a manufacturer nor a retailer but acts as a link between the two.”
  • B. Giles: – “Wholesalers may be said to provide the economic utilities of time, place and possession which may lead to economy in distribution of adequate stock to be available at the right time in a convenient location.”
  • William J. Stanton: – “Wholesaling and wholesaler includes the sale and all activities directly incident to the sale of products or services to those who buy for the purpose of resale for business use.

Characteristics of Wholesaler

  • Position: – Wholesaler occupies the first & very important position in the channel of distribution.
  • Procurement in bulk quantity: -He purchase goods in large quantities from producers and sells in small lots to retailers. It is one of the important characteristics of the wholesaler.
  • Sale to other dealers: – The wholesaler sells goods to retailers. He does not come into direct contract with the ultimate consumers.
  • Buying directly from manufacturer: -Usually, the wholesaler buys directly from the manufacturers or producers.
  • Restriction to one or few goods: – Usually, wholesaler deals in a few types of products or in a limited product line. He specializes in the product line.
  • Personal service: – He operates in a specific area determined by producers. He is a vital link between the producer and the retailer.
  • Transportation & warehousing: – Wholesalers provide ready delivery of goods by having transportation and warehousing facilities.

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