Wholesaling

 ( Freight Transport ) 

Wholesaling or distributing is the sale of goods or Merchandising to retailers; to manufacturing, commercial, institutional or other professional business users; or to other wholesalers ( wholesale businesses) and related subordinated services. In general, it is the sale of goods in bulk sale to anyone, either a person or an organization, other than the end consumer of that merchandise. Wholesaling involves purchasing goods in bulk, usually directly from the manufacturer or source, at a discounted rate. Retailers then sell these goods to end consumers at a higher price, generating a profit.

Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products. However, with the advent of the internet and e-procurement there is an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia. The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs.

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.

In real estate, wholesaling is the act of contracting to purchase real property, and assigning that contract to an investor.

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Definition According to the United Nations Statistics Division, wholesale is the resale 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, breakbulk cargo, repack, and redistribute in smaller lots. 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.

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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.

In China, wholesalers are subject to a Value-Added Tax (VAT) of either 9% or 13% on imported goods, depending on the type of product. Additionally, consumption tax is levied on products such as tobacco, alcohol, and luxury goods. These taxes are part of China's broader strategy to promote domestic consumption and regulate imports. On the other hand, Vietnam imposes a standard VAT rate of 10% on most goods and services, with exemptions for certain agricultural products and essential services.

In Europe, Value-Added Tax (VAT) rates vary among member states, with a standard rate that cannot be less than 15%. Countries like Hungary, Croatia, Denmark, and Sweden have higher standard VAT rates, while Luxembourg, Malta, Cyprus, Greece, Germany, and Romania have lower rates.

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

(2025). 9781350113404, Bloomsbury Academic. . ISBN 9781350113404

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See also

• Business-to-business
• Cash and carry (wholesale)
• Distribution (marketing)
• Jobbing house
• Supply chain
• Supply network

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