Wholesale trade is an important element in the economy of any country

The market does not stand still, it is in constant development taking into account the needs of the population. Wholesale trade is the activity of selling goods with services to those who purchase them for resale or further use (sewing, processing). It is an important link that ensures the acceleration of the entire process of commodity circulation in the market. Products move through distribution channels, synchronization of production and consumption occurs.

The role of the state

One of the main economic tasks of any country is the restructuring of the wholesale trade, which contributes to the development of small business. Experts note that in recent years the volume of large commodity turnover has decreased. Therefore, another important task that is worthwhile is to stop the decline of these operations. The warehouse economy needs to be restored. It is necessary to build new premises with modern equipment, restore and reconstruct those storage areas for goods that are already in operation. State policy solves another important task on which wholesale trade depends. This development and improvement of the competitive environment, the withdrawal from monopoly, the promotion of domestic products.

Wholesale functions

In the market, this type of trade plays a different role. Concerning those who delivers goods, the following functions stand out:

- Marketing services.

- Concentration and development of commercial activities.

- Investment support of goods turnover.

- Reduction of commercial risk.

- Transfer of ownership of products.

Concerning entrepreneurs of small retail organizations, other tasks that are solved by wholesale trade are singled out. These are the functions:

- Delivery of products.

- Storage and stockpiling.

- Estimation of demand.

- Conversion of the existing assortment (production) into a commercial one.

- Consulting services, information services.

- Lending to retailers.

Some features

Wholesale trade is a large network of organizations with different forms of ownership. Its improvement not only creates the conditions for reforms, but also contributes to the stability of the consumption market. The effectiveness of trade depends on wholesalers. Even with large capital, manufacturers often spend money to develop production, rather than to organize sales. Retailers who offer customers a wide range of products usually purchase lots from a certain wholesaler, rather than parts from different companies. It is believed that the most important is the wholesale of goods, associated with the supply of stores a wide and complex range. Enterprises that manufacture products are profitable to sell in large batches without any additional sorting on certain requests. Not every large company has premises and people to convert the assortment from industrial to commercial. The way out in this situation is wholesale sales.

Special attention should be paid to wholesale food products. This is a difficult business, as it is connected with risks, is built on the knowledge of managers about the changing market conditions. It is necessary to be able to make quick decisions. People who are engaged in such activities must know mathematics, be good organizers. The advantage is the quality of bargaining. It should be noted that food trade is labor-intensive activity, it requires an unnormalized working day, often it is necessary to work on weekends and holidays. If managers are lazy, then bankruptcy can threaten. In the event of liquidation of enterprises, there is a risk of large losses, as products that are not sold are quickly deteriorating. They are sold at bargain prices or thrown away.

Wholesale trade is of great importance in the system associated with the sale of products. It creates channels through which goods are sent to intermediate and end users.