Wholesaling

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Headquarters of Eurocash Group, a Polish wholesaler
The headquarters of Suomen Palvelutukkurit Oy, or PATU,[1] is located at Gate8 Business Park in Vantaa, Finland

Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services.[2] In general, it is the sale of goods in bulk to anyone other than a standard consumer. Wholesaling is the selling of merchandise to anyone either a person or an organization other than the end consumer of that merchandise.

Wholesaling is selling of goods in large quantities but at lower prices for selling the goods at a profit. Wholesaling is buying goods in bulk quantity at discounted rate and selling to the retailer at higher price.[3]

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.[4] 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 from which they got the products.[5] However, with the advent of the internet and e-procurement there are an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia.

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.

Taxes[]

Often, in the United States, wholesalers are not required to charge their buyers sales tax, if the buyer has a resale license in the state the wholesaler is located. Out of state buyers are not charged sale tax by wholesalers.[6] it is important for business.

Direct selling[]

Main articles: Direct selling and Direct marketing

The alternative to selling wholesale to distributors or retailers is to sell retail[7] either through company-owned stores or online. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers.[8] Direct selling is a business model wherein sellers sell the goods directly to the end customer.

Top wholesalers in U.S[]

Top U.S wholesalers according to csnews report in 2012.[9]

Ranking 2012 Company/ Headquarters Latest FY (M$) locations served deliveries per week % of sales to chain stores % of sales to Indep. # of warehouses Warehouses (thousands Sq. feet) full employee sales per Sq. foot (thousands $) sales per employee (thousands $) sales per location (thousands $) sales per delivery ($)
1 McLane Co. 27,300 39269 48682 96 4 20 10464 9079 2609 3007 695 561
2 Core-Mark Holding Co. Inc. 8,115 30000 – 50 50 28 – 5000 – 1623 271 –
3 Eby-Brown Co 4,500 21000 – 70 30 7 2250 2200 2000 2045 214 –
4 H.T. Hackney Co 4,000 20000 – – – 28 – – – – 200 –
5 GSC Enterprises Inc. 1300 8000 6500 68 32 6 1676 1315 776 989 163 200
6 Farner-Bocken Co. 1200 – – 50 50 1 450 930 2667 1290 – –
7 Harold Levinson Associates Inc. 1200 15000 15000 10 90 1 550 475 2182 2526 80 80
8 Imperial/Harrison Super regional 1,025 2950 3120 64 36 4 379 447 2704 2293 347 329
9 Amcon Distributing Co. 1004 5000 – – – 6 601 – 1671 – 201 –
10 S. Abraham & Sons Inc. 939 3614 3079 58 42 2 440 477 2134 1969 260 306
11 Consumer Product Distributors inc. 926 3695 4185 44 56 4 300 574 3087 1613 251 221
12 Chambers & Owen Inc. 765 – – 50 50 1 265 300 2887 2550 – –
13 Liberty USA Inc. 700 1800 1650 70 30 1 150 250 4667 2800 389 424
14 Garber Bros. Inc. 695 2400 3100 60 40 1 200 246 3475 2825 290 244
15 J.T. Davenport & Sons Inc. 600 2000 – 70 30 2 211 – 2844 – 300 –
16 Cooper Booth Wholesale Co. 540 1750 1175 20 80 1 110 187 4909 2888 309 460
17 Atlantic Dominion Distributors 486 2100 1600 65 35 2 180 120 2700 4050 231 304
18 Tripifoods Inc. 458 2750 2970 92 8 1 250 210 1832 2181 167 154
19 Stephenson Wholesale Co. Inc. 405 3500 4533 35 65 202 292 2005 1387 116 89
20 Pine State Trading Co. 400 5000 – 55 45 5 246 – 1626 – 80 –
21 Harbor Wholesale Grocery Inc. 391 2500 1700 40 60 2 300 265 1303 1475 156 230
22 Southco Distributing Co. 343 1400 2200 45 55 1 225 180 1524 1906 245 156
23 Richmond-Master Distributors Inc. 300 1400 810 30 70 5 210 – 1429 – 214 370
24 Thomas & Howard Co. Inc. 250 1500 2300 47 53 3 300 300 833 833 167 109
25 Allen Brothers Wholesale Dist. Inc. 230 1358 930 33 67 1 65 72 3538 3194 169 247

See also[]

References[]

  1. ^ PATU - Official Site
  2. ^ "Protocols of accession for new members since 1995, including commitments in goods and services". WTO. Archived from the original on 4 March 2018. Retrieved 8 May 2018.
  3. ^ Kolodny, Joseph (September 1949). "The Mechanics of Wholesaling". Journal of Marketing. 14 (2): 225. doi:10.2307/1247896. ISSN 0022-2429.
  4. ^ "United Nations Statistics Division – Classifications Registry". unstats.un.org. Archived from the original on 21 March 2018. Retrieved 8 May 2018.
  5. ^ Chandler, A. D. (1994). Scale and scope The Dynamics of Industrial Capitalism. Cambridge, Massachusetts: Belknap Press of Harvard Univ. Press. p. 29.
  6. ^ Michael Gravette, wholesaler for 32 years.
  7. ^ "Als Lieferant mitmachen" (in German). eu-lieferanten.de. Archived from the original on 11 April 2013. Retrieved 9 April 2013.
  8. ^ Ian Mount (March 6, 2013). "Clothing Companies Trying to Find More Direct Paths to Customers". The New York Times. Archived from the original on March 7, 2013. Retrieved March 7, 2013.
  9. ^ "Archived copy" (PDF). Archived (PDF) from the original on 2013-06-26. Retrieved 2014-01-08.CS1 maint: archived copy as title (link)
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