Wholesale commerce. Trading activity: features and regulation. The main decisions of wholesalers

  • 10.03.2020

A ready-made business in the wholesale trade is now considered a promising direction. Since the niche is not yet filled, by investing in wholesale now, you can pay off, on average, in 2 years. Therefore, the sale of a ready-made business is in great demand.

Wholesale trade involves working directly with manufacturers or large wholesale companies. Buying a wholesale business in Moscow means becoming an intermediary between a manufacturer of goods and retail chains, private organizations.

Before you buy ready business in Moscow and the Moscow region, it is worth deciding on the group of goods that you will supply. Market analysis will identify the most popular product groups and the level of competition in the wholesale environment. By identifying, for example, on open network sites like Avito, prices for goods in a selected area, you can attract customers while establishing a lower market value among competitors. If the business does not yet have its own customer base, to attract attention, ideas should be developed that are attractive to customers, for example, a discount system.

Before you buy a wholesale business, remember that when working with food, you need to take into account their terms and conditions of storage and transportation. Another important condition for work in the field of nutrition is the preservation of the presentation. This area is the most difficult to work, however, very profitable.

Sale of business wholesale trade in Moscow and the Moscow region from the owner

Wholesale associated with large investments. First of all, it is the rent or purchase of a warehouse and installation necessary equipment. It is relatively inexpensive to rent empty premises from organizations in Moscow. When choosing an area, it is worth considering how convenient it is for trucks to drive up to the place of unloading goods.

If a turnkey business is being sold, in order to not have to increase the expense item for equipment after the purchase, it is worth checking the availability of cargo and weight equipment, various shelves, racks, racks and how conveniently they are located. For a certain category of goods, the presence of refrigerators and freezers. A wholesale business plan should consider all factors.

As a rule, warehouse and office are the same premises. The office should also be equipped with everything you need.

If you decide to buy a wholesale business in Moscow, when making a plan for the purchase of goods, consider all possible risks. Unlike retail, wholesale is a large consignment of goods that must be sold. So that the goods do not stay in the warehouse, in the case of food products, do not deteriorate, experts advise to accurately calculate the season, the number of orders, and the popularity of the goods. Also, drawing up a detailed contract with suppliers that takes into account all the nuances will help protect yourself.

Buying a business wholesale: a ready-made business

Summarizing, what are the pros and cons of selling a ready-made business? Of the indisputable advantages - weak competition, high turnover of goods, work without intermediaries. Risks: delivery low-quality goods from the manufacturer, its damage during transportation, inflation, as a result of which the price of goods rises and demand falls, insolvency of customers. If all possible risks are taken into account at the planning stage, financial losses can be minimized, thereby making the ready-made wholesale business as efficient as possible.

In cooperation with Altera Invest, you will be able to realize your idea and buy wholesale business in a short time, taking into account all the legal subtleties.

I never cease to be amazed at the knowledge of the law by entrepreneurs in general, and our Ivanovo entrepreneurs in particular. This is also true for the concepts of retail and wholesale trade in textiles. By the nature of my profession and position in LLC NEW, I constantly communicate with Ivanovo entrepreneurs - manufacturers and sellers of textile and garments, at numerous shopping complexes of the city and region. And in most cases, to my question: "What kind of trade do you have, retail or wholesale?", they answer me: "We sell only in bulk, from so many pieces ... or only in packages." And at the same time, it turns out that these entrepreneurs apply the taxation regime in the form of UTII, which, in principle, excludes wholesale trade.

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It should be said right away that the type of trade - retail or wholesale, does not depend on the number of goods purchased by one buyer, nor on the status of the buyer (organization, individual entrepreneur or individual who is not an entrepreneur), nor on the type of payment for the goods - cash or non-cash payment. To define the concept retail should be guided by the norms of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation). For a long time, our legislators did not notice the legal conflict present in the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), in the chapter on the Unified Imputed Income Tax (hereinafter referred to as UTII), where the concept of retail trade was described as cash trade, which contradicted the concept of retail trade in Civil Code of the Russian Federation. But reason nevertheless prevailed over stupidity, and the developers of the law corrected one of their many mistakes in the Tax Code of the Russian Federation on January 1, 2006. Now the concept of retail trade in the chapter of UTII of the Tax Code of the Russian Federation corresponds to the concept of retail trade in the Civil Code of the Russian Federation.

The issues of relations between the parties in trade, that is, sale and purchase, are regulated by the Civil Code of the Russian Federation (CC RF), mainly the norms of its Chapter 30 “Purchase and Sale”. With any sale and purchase, a contract is always concluded. Paragraph 2 is devoted to retail sale and purchase in the Civil Code of the Russian Federation, where in Article 492 the concept of a contract retail purchase and sale defined as follows: " Under a retail sale and purchase agreement, the seller carrying out entrepreneurial activity for the sale of goods at retail, undertakes to transfer to the buyer goods intended for personal, family, home or other use not related to entrepreneurial activity". That is, the concept of retail trade is quite clearly and legally defined by the Federal Law. A number of conclusions can be drawn from this definition.

First, they can only sell something at retail individual entrepreneur or an organization carrying out such business activities. Secondly, the definition of sale and purchase as retail is not affected in any way by the method of payment for the purchased goods. Thirdly, the concepts of “a lot or a little”, “by the piece or in packages”, in relation to the purchased goods, have nothing to do with the type of contract of sale. It also doesn't matter who acts as the buyer. The buyer under a retail sale and purchase agreement may be an individual, an individual entrepreneur or entity.

What matters is the intended use of the product being sold. Please note that the wording of the retail sale and purchase agreement in the Civil Code of the Russian Federation is structured in such a way that the phrase “goods, intended for non-business use". Is the purpose of the product should follow from the essence of the product itself, or does the seller need to know the intention of the buyer? But no one and nothing obliges the seller to be interested in the buyer, for which he purchases the goods. And the same product can be used for different purposes. A common mistake of some lawyers is that this article does not establish special requirements for the buyer, and there is no indication of the purpose of using the purchased goods. The requirements apply solely to the purpose of the goods. It must be indicated by the product itself, which cannot be intended solely for business purposes (for example, industrial equipment, cash registers, etc.). The purpose of a complex product is almost always indicated in the passport for it. In other cases, this can only be guessed at.

It is with this uncertainty that most of the disputes between entrepreneurs and tax authorities, which, depending on a combination of factors, do not recognize retail trade, or vice versa, recognize a different transaction. Such factors can be: the regularity of sales to the same buyer (entrepreneur), the price of the goods, and others. But how can the regulatory authorities determine, and the entrepreneur-seller can defend his position in determining the contract of sale? How can an entrepreneur prove that he sold at retail and not wholesale, or vice versa? More on this in the following articles. Now let's move on to wholesale.

There is still no definition of the contract of wholesale purchase and sale in any federal law. Until February 1, 2010, there was also no definition of wholesale trade in the legislation. However, wholesale trade was defined earlier, but only in regulations. The concept of "wholesale trade" was legally defined in the Federal Law of December 28, 2009 No. 381-FZ "On the Basics state regulation trading activities in Russian Federation”, which entered into force on February 1, 2010. " Wholesale trade - a type of trading activity associated with the purchase and sale of goods for use in business activities (including for resale) or for other purposes not related to personal, family, household and other similar use". But this law has a limited scope (Article 1), and Article 3 makes a direct reference to the norms of the Civil Code of the Russian Federation.

In the Civil Code of the Russian Federation, the only mention of the word "wholesale" is in Article 1030, in the context of determining remuneration under a commercial concession agreement, as part of the phrase "margins on the wholesale price of goods." But if there is a wholesale price, then the concept of a wholesale purchase and sale agreement must also be legally defined. But there is no such definition in federal law.

It can be assumed that a wholesale sale and purchase agreement will be any sale and purchase agreement that, according to its criteria, cannot be attributed to a retail sale agreement. But this assumption would be wrong. Not all types of sales contracts defined by Chapter 30 of the Civil Code of the Russian Federation can be attributed to wholesale trade.

According to its definition, and based on the definition of wholesale trade, only a supply contract can be clearly attributed to a wholesale purchase and sale agreement. Article 506 of the Civil Code of the Russian Federation “Delivery Agreement”: “ Under the supply agreement, the supplier-seller engaged in entrepreneurial activity undertakes to transfer, within the stipulated period or terms, the goods produced or purchased by him to the buyer for use in entrepreneurial activity or for other purposes not related to personal, family, household and other similar use».

Now we can compare the definitions of retail and wholesale contracts of sale. They seem to have a lot in common. Both in retail and wholesale trade, only a person engaged in entrepreneurial activity can be a seller. Both for retail and wholesale purchase and sale, neither the form of payment (payment for goods) nor the quantity of goods matter.

But the buyer in the wholesale trade can only be an individual entrepreneur or organization. Since only they can use the purchased goods for business purposes, or for other purposes not related to personal, family, home and other similar use. An individual who does not carry out entrepreneurial activities cannot, by definition, be a party to a supply agreement, in other words, with. In practice, it's not all that simple. And more often the word "wholesale" is associated by both buyers and sellers with the word "a lot".

Let's summarize all of the above in comparative table:

Comparative characteristics retail and wholesale
Retail Wholesale
Contract form Oral, written Written
Form of calculation (payment) Any Any
Seller - Jur. face Yes
Seller - IP Yes, but only if retail Yes
Seller - Phys. face Not Not
Buyer - Jur. face Yes Yes
Buyer - IP Yes Yes
Buyer - Fiz. face Yes Not
Purpose of the goods Only non-business related Any
Purpose of using the product Any Just not personal, family or home

There are 2 main types of trade - wholesale and retail. What is the specificity of each of them?

What is the specificity of wholesale trade?

In the legislation of the Russian Federation wholesale is defined as a type of commercial activity that involves the purchase and sale of goods for the purpose of their use in business (for example, for resale) - that is, not for personal consumption. Wholesale trade is most often carried out at the conclusion of supply contracts. Under the relevant contracts, suppliers transfer the goods produced by them or purchased from partners to their buyer within the established time limits for subsequent use in business. Thus, wholesale trade can also be called the main subject of the relevant contracts.

The buyer of goods within the framework of the wholesale is most often an individual entrepreneur (for example, a store owner) or a legal entity. But it happens that individuals also take part in the relevant contracts. True, the subsequent resale of goods for them may not be very profitable in terms of taxation. Therefore, in order to participate in wholesale transactions, citizens, as a rule, are registered as individual entrepreneurs or founders of business companies.

Strictly speaking, an individual entrepreneur is also an individual, but registered in government bodies in the prescribed manner as a business entity. But when dealing with goods (for example, if we are talking about the resale of goods purchased in bulk), an entrepreneur is most often entitled to use the taxation regime with a lower payment burden than an individual who is not registered as an individual entrepreneur.

As a rule, wholesale deliveries involve the sale of goods in significant volumes. At the same time, the cost of 1 unit of production within a large batch is usually significantly lower than if the goods were purchased in smaller batches or separately. As a result, the buyer wholesale goods can profitably resell purchased products.

What is the nature of retail?

The legislation of the Russian Federation defines retail how commercial activity, in which the supplier of the goods sells it to the buyer for further use of this product for the personal purposes of the person who bought the product, that is, not related to entrepreneurial activity.

The buyer of goods at retail is most often an individual. Sometimes - an individual entrepreneur, who, from a legal point of view, as we noted above, also acts as an individual. An organization can also be a participant in retail transactions if its owner, in accordance with the procedure established by law, intends to use the purchased goods not for business, but for personal purposes.

As a rule, single products are sold at retail or delivered in relatively small batches.

Comparison

The main difference between wholesale and retail is how the goods purchased from the supplier are used by the buyer. Wholesale assumes their further involvement in the business (for example, the implementation of their subsequent resale). At retail, the purchased goods are used personally by its purchaser, members of his family and other persons to whom he can transfer the goods.

As a rule, the parties to transactions within the framework of wholesale trade are legal entities and individual entrepreneurs, quite rarely - individuals. In retail trade, individuals, in turn, take a much more visible part.

Wholesale transactions often involve the supply of large quantities of goods. Retail, on the contrary, are characterized by relatively small volumes of purchases.

Having determined the difference between wholesale and retail trade, we will reflect the conclusions in the table.

Table

Wholesale Retail
Involves the sale of goods that are further used by the buyer in business activities (for example, for resale purposes)It involves the sale of goods that are later used by the purchaser for personal purposes.
As a rule, legal entities and individual entrepreneurs become parties to wholesale transactions, individuals - very rarelyIndividuals regularly participate in retail transactions (most often as buyers of goods)
Wholesale contracts often involve the supply of large quantities of goods, which can, for example, be profitably sold individually in the future.Retail transactions usually involve the sale of single items or presented in relatively small quantities.

The essence of wholesale trade.

Role and functions wholesale trade .

exchange form wholesale trade .

Essence and content of procurement work.

Purchasing goods at wholesale fairs and wholesale markets.

Types of wholesalers.

The impact of wholesale and retail trade.

Types and forms wholesale trade .

Analysis of the sale of goods and serviceswholesale enterprises .

Analysis of the implementation of the plan and the dynamics of wholesale trade.

Wholesale isform of relationship between enterprises, organizations in which economic relations for the supply of products are formed by the parties independently.

Wholesaleproduct political parties. Most often, product, bought from a wholesaler, is intended for subsequent resale. But it is also not uncommon for buyers to be large consumers. product.

Wholesale -public benefit activities, including sales goods to organizations that purchase them for use in own business or for resale.

Wholesale -one of the forms of commodity circulation, through which economic relations are carried out between economic enterprises.

Wholesale -purchase and sale of goods in the order of direct relations between manufacturers and consumers as well as through wholesalers.

The essence of wholesale

Wholesale trade provides services to manufacturers of goods and retail. As a result of its activity, the product approaches the consumer, but does not yet fall into the sphere of personal consumption.

The most important task of wholesale trade is to systematically regulate commodity in accordance with demand. The objective opportunity to successfully solve this problem is due to the intermediate position of wholesale trade: a significant part of commodity resources is concentrated in it, which makes it possible not to be limited to passive operations, but to actively influence the sphere of production, retail and through it - to the sphere of consumption.

Wholesale trade, like no other link associated with the sale of goods, is able to actively regulate regional and sectoral markets through the accumulation and movement of goods. This direction work and should take a decisive place in all its activities. Wholesale enterprises are called upon to improve product distribution, develop a centralized supply and circular delivery of goods. Currently, along with the positive in the activities of wholesale enterprises, there are significant shortcomings. Often deadlines are missed supplies goods, contractual obligations in terms of the volume, assortment and quality of the supplied goods are violated.

From work Wholesale trade largely depends on the efficiency of the functioning of the entire national economic complex, the balance of the domestic market, and the satisfaction of the growing needs of people. Under the new economic conditions, the scope of wholesale trade will be significantly expanded. The strengthening of the role of commodity-money relations is associated not only with the development of wholesale trade in consumer goods, but also with the transition to wholesale trade in means of production. These two forms are becoming the most important channels for the planned movement of material, technical and commodity resources.


Main indicator economic activity enterprises and organizations of wholesale trade - wholesale turnover. He is sale consumer and industrial goods for subsequent sale to the population, as well as supply for off-market consumers and export. Wholesale turnover reflects the transition of goods from the sphere of production to the sphere of circulation and their movement within the sphere of circulation. Its volume, structure, types and forms of commodity circulation predetermine others. key indicators economic activity.

The main goal of analyzing the trading activity of wholesale enterprises is to identify, study and mobilize reserves for the development of trade, improve customer service, and improve commodity circulation.

In the process of analysis, it is necessary to assess the implementation of plans for wholesale turnover and delivery of goods to customers; study them in dynamics; identify and measure the influence of factors on the development of wholesale trade; study the causes of shortcomings in trade and commercial activities, if any, and develop measures to eliminate and prevent them; determine strategy and tactics marketing activities wholesale enterprise. The analysis should show how the wholesaler in its economic activity takes into account the socio-economic development of the region served, production capabilities industrial enterprises and other suppliers, their availability of commodity resources, the volume and structure of the expected receipt of goods from other regions of the republic, near and far abroad.

Wholesale trade covers the totality of commodity resources, which are both means of production and commodities. In wholesale trade, the product is purchased by large political parties. Wholesale trade is not related to the sale of products to specific end consumers, i.e. it allows manufacturers, through intermediaries, to market the product with minimal direct contracts with consumers. On the commodity market wholesale is an active part of the sphere of circulation. Therefore, the study of the typology of wholesale trade enterprises is relevant and provides an opportunity to navigate the industrial market well.


Wholesale trade is an important lever for maneuvering material resources, contributes to the reduction of excess stocks of products at all levels and the elimination of commodity shortages, takes part in the formation of regional and sectoral commodity markets. Through wholesale trade, the influence of consumers on producers increases; in turn, the manufacturer himself selects consumers.

The typology of forms of wholesale trade enterprises is not characterized by a wide range, although it is of interest as a set of significant elements, each of which has its own organizational and legal features, target orientation and methods of work in the industrial market.

The wholesale trade system solves the most important issue for any society - employment and employment of the population, which, due to the progressive course of structural economic reforms, is mostly in the position of unemployed.

The current state of development of wholesale trade needs to solve such a problem as the formation of market infrastructure elements. In the current economic conditions, there is a catastrophic lack of storage and retail space. This is due to the fact that the old areas are concentrated in the hands of a few former large government organizations, and they, in turn, dictate inaccessible to merchants high prices for the rent of these premises. The structure of transport is outdated both morally and physically, and for the acquisition newest species mobile transport is not enough money.


Wholesaling includes any activity of selling goods and services to those who purchase them for the purpose of resale or professional use. wholesale merchants differ from retail in the following characteristics:

The wholesaler pays less attention to promotion, store atmosphere, and the location of his outlet;

The wholesaler deals primarily with professional clients and not with end-users;

Wholesale contracts are usually larger in volume than retail ones;

The wholesaler's trading area is usually much larger than that of the retailer;

Legal regulations and tax policies for wholesalers and retailers differ.

Wholesalers ensure the efficiency of the trading process. Small producer with limited financial resources it is not possible to create and maintain a company by direct analysis of market conditions. Even with sufficient capital, the manufacturer prefers to direct funds for development own production, not on firm wholesale trade. Wholesalers are almost always more efficient due to the size of operations, the greater number of retail business contacts, and the availability of specialized knowledge and skills. Retailers dealing with a wide range of products usually prefer to buy the entire set of products from one wholesaler, rather than piecemeal from different manufacturers.

So, both retailers and manufacturers have every reason to resort to the services of wholesalers. With the help of wholesalers, you can more effectively perform the following functions: promotion of sales of goods. Wholesalers have a sales force that helps the manufacturer reach many small customers at a relatively low cost. The wholesaler has more business connections. , as a rule, trusts the wholesaler more than some distant manufacturer;

Procurement and assortment formation. The wholesaler can pick up the product and form the necessary product, saving the client from significant hassle. Breakdown of major political parties into small ones. Wholesalers provide customers with significant cost savings by purchasing goods in wagons, breaking up large political party into small ones. Warehousing. Wholesalers keep inventories, thereby helping to reduce the corresponding costs of the supplier and consumers;

Financing. suppliers finance their customers by providing them with a loan, and along with suppliers, issue orders in advance and pay bills on time;

Risk acceptance. Taking ownership of the product and bearing expenses in connection with its theft, damage, deterioration and aging, wholesalers simultaneously take on part risk. Providing market information. Wholesalers provide their suppliers and customers with information about the activities of competitors, suppliers x, dynamics prices etc. Management services. Consulting services. The wholesaler helps retailers improve by participating in store layout, product display, salesperson training, and companies accounting and inventory management.

The rapid development of wholesale trade in last years due to significant trends in the modern economy:

growth in mass production of goods large enterprises remote from the main users of the finished product;

an increase in production volumes for the future, and not to fulfill specific orders;

an increase in the number of levels of intermediate producers and users;

an increasing need to tailor products to the needs of intermediate and end users in terms of quantity, packaging and variety.

Transportation. Wholesalers provide faster delivery of goods. They are closer to customers than product manufacturers.


Encyclopedia of the investor. 2013 .

See what "Wholesale" is in other dictionaries:

    Wholesale- Wholesale trade in consignments of goods. Most often, goods purchased from a wholesaler are intended for subsequent resale. But also often the buyers are large consumers of goods. Wholesale is ... ... Wikipedia

    Wholesale- See Wholesale Business Glossary. Akademik.ru. 2001 ... Glossary of business terms

    wholesale- Trade in goods with their subsequent resale or professional use. [GOST R 51303 99] Trade topics ... Technical Translator's Handbook

    WHOLESALE- trade in large quantities of goods, sale to wholesale buyers who consume goods in significant quantities or sell them then at retail. It is carried out through a network of wholesale and small wholesale buyers of intermediaries (dealers), at wholesale prices ... Legal Encyclopedia

    WHOLESALE- WHOLESALE TRADE, part of domestic trade, covering the sale of large consignments of goods by manufacturers to retailers, and the means of production by enterprises to consumers of these products. Type of wholesale trade transaction ... ... Modern Encyclopedia

    WHOLESALE- part of domestic trade, covering the sale of large consignments of goods ... Big Encyclopedic Dictionary

    Wholesale- sale of goods for their industrial use or resale ... Glossary of Crisis Management Terms

    WHOLESALE- (wholesaling) Selling goods to distributors, not final consumers. Wholesalers usually deal in larger volumes of goods than retailers: they break up large lots and sell in smaller lots than they buy ... ... Economic dictionary

One of the main tasks of trade is to ensure the effective movement of goods from producers to end buyers (consumers). In many cases, such a movement of goods cannot be carried out without the participation of wholesale trade, designed to ensure the appropriate accumulation necessary goods and their movement in space and time.

Generally, wholesale is understood as any activity for the sale of goods or services for their further resale or industrial use. In this case, the wholesaler can be both an individual and a company. It is only important that the main activity is wholesale trade.

Main functions of wholesale trade

The main functions performed by the wholesale trade are:

Collection and processing of information about demand, buyers and offers;

Purchase and formation product range. The wholesaler has the opportunity to purchase goods of the widest range in large quantities from different producers;

Selection, sorting and formation of the most acceptable supply lots for the buyer. The wholesaler, on the basis of large batches of deliveries, forms small ones, if necessary, sorts them, packs them, etc.;

Warehousing and storage of goods;

Transportation of goods. Sometimes wholesalers provide direct delivery of goods to the places of their sale;

Participation in the promotion of goods on the market;

Risk distribution. Wholesalers take the risk of theft, damage and obsolescence of stock;

Financing of deliveries and sales. This can be either an advance payment for the delivered goods to the manufacturer, or a credit to the seller or buyer;

Provision of consulting services.

The number of listed functions and the level of their implementation depend on what form of wholesale trade is implemented.

Who carries out wholesale trade?

Wholesale trade can be carried out by both commodity producers and various commercial wholesale firms. Agents and brokers are directly involved in wholesale trade.

Direct Wholesale

Direct wholesale trade is carried out by commodity producers. They do this when they believe that in this way they can ensure the most effective sales policy.

In the conditions of direct wholesale trade, commodity producers usually create their own trade branches or trading offices. They may also outsource wholesale to sales departments.

Trade branches or offices create stocks of the company's goods and ensure the implementation of a wide range of wholesale trade functions, as discussed above.

Commercial wholesalers

Commercial wholesalers are independent firms that acquire ownership of a product for the purpose of reselling it. Such firms can perform both all the functions inherent in wholesale trade, which were mentioned above, and some of them. The former refers to full service commercial wholesalers, while the latter refers to limited service commercial wholesalers.

Full service commercial wholesalers

Full service commercial wholesalers carry out a certain set of functions inherent in the wholesale trade. These firms are of two types:

Wholesale firms serving retailers;

Wholesale firms serving mainly commodity producers.

The widest and most complete range of services is provided by firms of the first type.

Limited service commercial wholesalers

These wholesalers provide a limited range of services to their suppliers and customers. Among them are usually distinguished:

Firms that sell limited-range products to retailers for cash. The latter themselves carry out the shipment and transportation of products;

Firms that sell goods for cash and supply them themselves;

Firms that, after receiving orders, find a supplier who directly ships the goods to the consumer;

Firms that supply limited-edition, brand-name products in small quantities and charge retailers only for the products sold;

Producer cooperatives;

Companies that send out catalogs of limited-edition products and ship them after they receive an order in the mail.

Dealers

A dealer can be an individual or a firm that is an intermediary in trade transactions for the purchase and sale of goods, securities, and currencies. Such an intermediary acts on its own behalf and at its own expense. The dealer receives his income due to the higher selling price of goods compared to the purchase price.

Distributors

A distributor is an independent commercial firm that conducts its business by purchasing in bulk from manufacturers with a view to reselling it primarily for use in manufacturing process. Distributors, as a rule, establish direct long-term relationships with manufacturers and buyers of products. Relations between all parties involved in the process of sale and purchase are governed by the agreements concluded between them. Such agreements, in particular, stipulate the amount of markups (discounts) to the wholesale price of the goods sold. Due to markups (discounts), the distributor's income is formed and all his expenses are compensated.

Agents and Brokers

Agents and brokers carry out certain functions of the wholesale trade without having ownership of the goods they offer for sale.

Manufacturers' agents usually represent several manufacturers whose products are complementary and non-competitive. The main purpose of brokers is to bring together buyers and sellers of goods to complete transactions. Unlike commercial wholesalers who make a profit from the goods they own, agents and brokers work for commissions or fees for their services.

The use of agents and brokers allows the producer to increase sales of goods with limited resources and knowing in advance what costs associated with sales, he will incur. In addition, qualified sales personnel are connected to the sale of its goods.

Wholesale trade in the Republic of Belarus

The main wholesalers are:

Wholesale bases and various associations (wholesale and marketing, trade and purchasing, wholesale and retail) systems of the Ministry of Trade;

District, inter-district, regional and republican bases of Belkoopsoyuz;

Wholesale bases of the working supply system;

Sales departments of large industrial enterprises.

Wholesale trade is also carried out by various commercial firms, sales agents of commodity producers and brokers. However, the participation of the latter in wholesale trade is insignificant.

The main decisions of wholesalers

Wholesalers make a variety of decisions aimed at ensuring efficient trading activities. Among these solutions, the main ones are:

Establishment target market, i.e., identifying the main group or groups of buyers for whom the offered goods are intended;

Determining the range of goods that most fully takes into account the interests of both the wholesaler and his customers;

Identification of the most appropriate set of additional services;

Establishment of the most acceptable price for the offered goods both for the wholesaler and for its buyers;

Ensuring an effective policy for promoting products on the market;

Establishing the best location for a trading wholesaler.