Motrom - wholesale company
Wholesale trade works effectively in the online space and offline environment. The mechanism of functioning of this tactic of selling goods is based on trading in large quantities of products, most often intended for subsequent resale.
Wholesale buyers do not interact with end consumers, but act as a link in the market turnover. Market participants perform the function of intermediaries, work with large volumes of products, are engaged in the purchase, storage and sale of goods purchased from manufacturers.
What is wholesale trade
What is wholesale
Retail sale of goods consists in the fact that the product or service immediately gets to the consumer. Wholesale trade "works" on a different principle. First, the goods arrive to companies, are priced and then sold to ordinary buyers.
In simple words, a wholesaler is a trade organization that cooperates with product manufacturers and customers to whom these products are sold. The difference between a wholesaler and a distributor is that a wholesaler can simultaneously interact with different manufacturing companies even within the framework of "disjoint" groups of goods. The distributor, as a rule, sells goods purchased from one manufacturer or wholesaler to retail chains. Cooperation with wholesalers is beneficial to many market participants:
The manufacturer of the product gets the opportunity to quickly sell the goods in large quantities at a set price below the retail value. Benefits of the enterprise: you can sell large volumes of goods and not waste time searching for sales channels.
It is enough for distributors to concentrate on one serious client-a wholesaler in order to purchase products at an attractive cost for themselves. Advantages for the distributor: compliance with the terms of delivery of goods to "their" retail stores.
Retail chains cooperate either directly with wholesalers or work through distributors. In both variants, stores do not have to spend time purchasing products in many places. It is enough to establish partnerships with counterparties.
Retail stores, even with extensive networks, almost do not work directly with manufacturers, as this is inconvenient for the manufacturers themselves. Merchants will not be able to buy goods in large batches and accurately designate the assortment and volumes in advance due to the specifics of supply and demand. Therefore, it is more profitable for both sides to work through intermediaries represented by wholesalers.
Important! Wholesale sales are profitable for retail. They provide access to an extensive range of manufacturers of products provided by wholesalers at an attractive price. Retailers still have the opportunity to make such a commodity margin so that the final cost is available to end consumers, but at the same time the store does not work to its detriment.