Wholesaler - Term Overview

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Wholesaler is a business that sells, buys or contracts wholesale. The concept differs from the notion of retailer, which is the business whose activity is carried out at retail.

For example: "I'm going to go to a wholesaler to buy the disposable plates for the party", "If you want to save money, you can buy non-perishable food in a wholesale supermarket", "The man at the shoe store told me that the wholesaler still I had not sent the new models ".

In addition to the above, it's important that we know other hallmarks that define the wholesaler and the work he does:

- In charge of buying goods from the producer directly or from another wholesaler.
- In most cases is also responsible for transporting goods.
- Must undertake what would be the storage and conservation of all the products you have for sale in the best possible conditions.

When carrying out a classification of wholesalers, it should be noted that it can be done based on five different criteria:

- The place where their premises and establishments are located.
- The type of products that is in charge of selling.
- The ways in which he carries out his professional activity.
- Whether or not it transmits the ownership of what would be the merchandise that it's responsible for putting up for sale.
- Existing links with producers or customers.

In the same way, it's also common for wholesalers to be classified according to the use they make of technology in their businesses. In this case, the most common is that those are divided into three groups: distance or online sales, self-service and traditional.

The seller or wholesale distributor, in general, doesn't come into direct contact with the final consumer. Its most common function within the distribution chain is to be the link between the producer or manufacturer and the retailer.

This, however, can vary. Some wholesalers sell directly to the final consumer, who must buy a minimum quantity to access the special price. On the other hand, there are producers who sell their products to the final consumer, avoiding going through a wholesale distributor.

We can analyze a hypothetical case in the distribution of corn. This product is grown in the field and marketed by the ton to a wholesale distributor. The latter buys the production in bulk and, in turn, resells it to the retail distributor. It's the retailer who finally sells the corn to the final consumer.

In each of these steps in the chain, the price of corn will increase. The farmer can sell his production to the wholesale distributor at a price of $ 2 per kilogram. The wholesaler, in turn, sells to the retailer at a rate of $ 3 per kilo, while the retailer offers the kilo of corn to the final consumer for $ 3.8.

In addition to all the above, we can't ignore that there is also another meaning for the term wholesaler at hand. Specifically, it must be said that formerly it was used to refer to all those students who during their studies were attending the classes of the elderly.

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