Wholesale: what is it, wholesale and retail, wholesale buyers. The minimum amount of wholesale

There are two main types of trade: retail and wholesale. What is each of them, what features does it have, and for what purpose is most suitable?

First of all, the key difference is in the volumes and types of sales. In bulk, we sell, as a rule, large quantities of goods or services that are necessary for the buyer to conduct business. Retail, in turn, is already on sale to end-users, individuals. It can also be not only single, but also large - it all depends on their needs and desires.

Principles of wholesale trade

Wholesale: what is this and what features does this form of trading have? In it, each buyer passes the identification procedure, that is, with each of them a contract is concluded. Wholesale buyers are, as a rule, individual entrepreneurs or legal entities. They trade for the conduct of their own business, and each has its own specific goals. This can be both production and consumption of goods, or their subsequent resale. More often than not, the goods purchased by wholesale are used for resale.

That is, in wholesale trade, the basic operations occur between entrepreneurs and organizations. Goods and services are sold not for the needs of the end user, but serve the purposes of doing business. The main feature of the wholesale trade is the mandatory identification of the buyer.

Schematic and examples

It is easier to understand what is wholesale, you can use specific examples. The main wholesalers are the producers themselves, they are the originators of the financial "chain". They directly create their products, and are engaged in its implementation in the market. This production can be very different: clothes, shoes, household appliances, cosmetics, souvenirs, food, etc.

In most cases, manufacturers resell products to other wholesalers, that is, dealers, and those to other resellers. Before the goods reach the final buyer, it will go through many stages of resale. How much depends on the product itself and on the financial state of the market at the moment. At the other end of the chain is a retailer - he sells products to the average consumer.

Advantages of wholesale trade

Despite the impressive volumes, it is much easier to trade wholesale from a warehouse than at retail. Do not need any time-consuming advertising, nor other marketing costs that can keep the buyer. Sales volumes can be stable, or the goods can be sold individually - it all depends on the goals of the seller. In any case, with proper quality and good demand, shipment and purchase of large quantities of goods will be carried out continuously.

In what other differences, so it is in the features of paying taxes. Wholesale enterprises can fall under both the general and the simplified taxation system (OCH or USN, respectively). But in general, the principles of taxation for wholesalers are much simpler than in the retail industry.

A "terrible dream" of any retailer is a buyer who is dissatisfied with the quality of the product or the service provided. The situation can be very unpleasant, even to hysterics and trials in court. Wholesale buyers do not behave this way, because they have an agreement on their hands, and in it - clearly stated conditions and rules of conduct of the parties in the event of conflict.

Sales at retail

Speaking of what is wholesale and retail, one major difference can be noted: if in the wholesale sale of goods can go through several stages of resale, then in retail, this situation is excluded. The goods are not intended for resale, but for direct use by the consumer.

Buyers themselves create the demand for this or that product and dictate market needs. Retailers are a category that has the best opportunity to study and analyze this demand and build its activities in accordance with it.

Where and how are the goods sold at retail?

There are lots of options. The sale of goods and services can be carried out both in the shop and on the street, as well as at the buyer's home. Methods are also different: by mail, through the Internet, in personal sales or by phone.

The seller in the retail sales system contacts directly with the buyer. That is, he has to take into account the tastes of each consumer, to please him and in every possible way facilitate the purchase. And in case of conflict situations - to cope with complaints.

The retailer has a lot of risks too. For example, you have to have poorly traded goods on the counter - in this way, buyers get the impression of a wide range and potential choice. On the other hand, there is a risk of damage to a product that was not sold on time. In addition, you have to make financial concessions: for example, to sell goods at a low price, often at a cost price, so that the buyer purchases other products.

However, all this has a downside - in fact the margin for retail goods is much higher than for a wholesale one. So, the profit from such sales will be much greater.

Requirements and features of sales

It is not enough to understand what is wholesale and what is retail - you need to analyze all the key features of these types of sales and understand what problems you may encounter in the course of this activity.

Differences

What are the differences between wholesale and retail?

1. Different assortment. The retailer works with a small assortment of a specific supplier, wholesale - with a broad, from different suppliers. The average wholesaler has from 5000 positions in the assortment matrix. What is a small wholesale? This is when the range of 100 to 1000 positions, depending on the specifics of the product itself.
2. Different volumes. Wholesalers only have to work with large volumes and a wholesale price. In addition to tangible profits, this entails more serious financial investments at the initial stage, as well as larger problems in case of failure.
3. Different logistics. This area is the most "problem" for the wholesaler, because he has to face a lot of difficulties for each type of goods: storage, accessibility, customs clearance, personnel. If it comes to seasonal goods, it is still more complicated.
4. Different turnover. If it is a question of huge volumes, but at the same time low turnover, a wholesaler should have a huge warehouse for storing his goods. In general, everything is simple: the faster the goods turn, the higher and more stable the profit. Any delays here are fraught with care in the minus - for example, because of the costs of storage, accounting, salaries of warehouse staff, etc.
5. Different planning criteria. In the sphere of bulk purchases, the seller deals not only with large profits and serious commodity flows, but also with a large financial leverage. It is important to calculate, with the maximum guarantee, the amount of future sales, be sure that the goods will be sold at a certain date, and also have a guaranteed profit for the purchase of a new product.

Problems in retail and wholesale trade

Nothing is perfect, with problems facing both retail and wholesale companies. However, wholesalers have to bear more serious losses. With what it can be connected?

• There is no credibility of creditors, and hence, the possibility of obtaining leverage. There may be problems with the payment of the previous shipment of goods or the purchase of the next.
• Illiterate planning, resulting in the accumulation of surplus goods, lying in the warehouse "dead weight".
• Unstable work with retailers. This can be either a sudden increase in the volume of their work, or the termination of activities or the decision to completely change the range. In any case, it is not very pleasant - after all, the wholesaler has planned certain volumes and will incur serious losses in the absence of their implementation.
• Interruptions in supply. It happens that the goods purchased at a wholesale price are not fully ready. Or there were problems with his shipment at customs. Or during the transportation phase, there was a force majeure. The consequences of all these troubles affect a wide range of clients. In retail, such situations also happen, but they are not so large.
• Human factor. We are all human beings, and everyone can make a mistake. For example, by ordering an incorrect position from the catalog or by making a cash gap. Worse, when there is an incorrect work with the buyer, as a result of which he leaves for the competitor. All this must be strictly monitored, in order to avoid serious problems with the budget.

Summing up

What is wholesale and what is retail, figured out. What problems can be encountered in each type of activity is also understandable. As well as the obvious advantages of each type of sales. On the other hand, where the fine line lies between wholesale and retail - the criterion is purely individual. For purchases in bulk, the minimum amount can be determined in each individual case by the seller - be it ten or a thousand items.

In general, we can say that it is easier to trade in bulk, because the terms of trade are regulated by the contract. But on the retail margin you can earn more.