Wholesale
Encyclopedia
Wholesaling, jobbing, or distributing is defined as 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
.
According to the United Nations Statistics Division, "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. While wholesalers of most products usually operate from independent premises, wholesale marketing
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.
However, with the advent of the internet and E-procurement
there are an increasing number of wholesalers located nearer manufacturing bases in China
, Taiwan
, and Southeast Asia. For example, Chinavasion
, Ownta
, Salehoo
, and Modbom. These companies offer drop shipping services to companies and individuals.
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.
, though sometimes they may be required to (or may per discretion) charge a special wholesale tax.
Industrial
Industrial may refer to:* Industry, segment of the economy* Industrial archaeology, the study of industrial history* Industrial engineering* Industrial group * Industrial Revolution, the development of industry in the 19th century...
, commercial
Commercial
Commercial may refer to:* Advertising, commercial messages**Radio advertisement, via the medium of radio**Television advertisement, via the medium of television*Commerce, the voluntary exchange of goods, services, or both...
, institutional, or other professional
Professional
A professional is a person who is paid to undertake a specialised set of tasks and to complete them for a fee. The traditional professions were doctors, lawyers, clergymen, and commissioned military officers. Today, the term is applied to estate agents, surveyors , environmental scientists,...
business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
users, or to other wholesalers and related subordinated services. In general, it is the sale of goods
Goods
Goods may refer to;*Good , physical product*Personal property, legal personal chattels...
to anyone other than a standard consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
.
According to the United Nations Statistics Division, "wholesale" is the resale (sale without transformation
Transformation
-Mathematics:* Transformation * Transformation * Integral transform* Data transformation * Transformation matrix-Natural science:* Phase transformation, a physical transition from one medium to another...
) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent
Agent
Agent may refer to one who acts for, or in the place of, another, by authority from him; one entrusted with the business of another.- In law enforcement :...
or broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
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. While wholesalers of most products usually operate from independent premises, wholesale marketing
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...
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.
However, with the advent of the internet and E-procurement
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.E-procurement...
there are an increasing number of wholesalers located nearer manufacturing bases in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
, and Southeast Asia. For example, Chinavasion
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....
, Ownta
Ownta
Ownta is an ecommerce company located in Hong Kong, China. The company is a wholesale retailer of tech gadgets and consumer electronics.Ownta.com’s international client base . A mix of Chinese and Western workers staff the Ownta.com offices and warehouse. Company's products have been reviewed on...
, Salehoo
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...
, and Modbom. These companies offer drop shipping services to companies and individuals.
In the banking industry "wholesale" usually refers to wholesale banking
Wholesale banking
Wholesale banking is the provision of services by banks to the likes of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance...
, providing tailored services to large customers, in contrast with retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
, providing standardized services to large numbers of smaller customers.
Taxes
Often wholesellers are not required to charge their buyers sales taxSales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
, though sometimes they may be required to (or may per discretion) charge a special wholesale tax.
See also
- Distribution (business)Distribution (business)Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
- Jobbing houseJobbing houseA jobbing house is a type of wholesale merchant business that buys goods and bulk products from importers, other wholesalers, or manufacturers, and then sells to retailers. Jobbing houses can deal in any commodity destined for the retail market. Typical categories are food, lumber, hardware,...
- Grocery tradingGrocery tradingGrocery trading is an industry, historically not well known by the general public, in which grocery "traders" or grocery trading companies buy and sell blue chip grocery store items such as Cheerios and Alpo amongst the nation's largest supermarket chains based on price discrepancies from chain to...
- RetailRetailRetail consists of the sale of physical 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...
- Supply chainSupply chainA 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...
- Supply networkSupply networkA 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...
- B2BBusiness-to-businessBusiness-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...