wholesaling


wholesaling
/hohl"say'ling/, n.
the business of selling to retailers, esp. in large quantities (distinguished from retailing).
[1790-1800; WHOLESALE + -ING1]

* * *

Selling of merchandise to anyone other than a retail customer.

The term may include sales to a retailer, wholesaler, broker, distributor, or business enterprise. Wholesaling usually involves sales in quantity and at a cost significantly lower than the average retail price. It has become an important step in the supply chain since the introduction of mass production and mass marketing techniques in the 19th century. Without wholesalers, manufacturers would have to market their products directly to a huge number of customers at high unit costs, and buyers would have to deal with an inconveniently large number of suppliers. There are three major categories of wholesalers. Merchant wholesalers, the most important category, are independent businesses that buy merchandise in great quantities from manufacturers and resell it to retailers. Manufacturers' sales branches are businesses founded by manufacturers to sell directly to retailers. Merchandise agents and brokers represent various manufacturers; they usually do not buy the merchandise they handle but instead arrange for shelf space and the display of merchandise. So-called warehouse stores sell large quantities of goods at near-wholesale prices. See also retailing.

* * *

      the selling of merchandise to anyone other than a retail customer. The merchandise may be sold to a retailer, a wholesaler, or to an enterprise that will use it for business, rather than individual, purposes. Wholesaling usually, but not necessarily, involves sales in quantity and at a cost that is significantly lower than the average retail price.

      Wholesaling became particularly advantageous after the introduction of mass production and mass marketing techniques in the 19th century. Without wholesale organizations, large manufacturers would have to market their products directly to a great many retailers and/or consumers at high unit costs, and retailers or consumers would have to deal with a large number of manufacturers at great inconvenience.

      There are three main categories of wholesalers: (1) merchant wholesalers, (2) manufacturers' sales branches, and (3) merchandise agents and brokers. The most important are the merchant wholesalers. These independent businesses buy merchandise in large quantities from manufacturers, process and store that merchandise, and redistribute it to retailers and others. Manufacturers' sales branches are businesses established by manufacturers to sell directly to retailers. They tend to be established by large companies which modify their products frequently and to whom rapid, accurate information on sales and suggestions for improvement are especially valuable. Merchandise agents and brokers sell complementary products of several manufacturers. Unlike merchant wholesalers and manufacturers' sales branches they ordinarily do not take title to the merchandise they handle. Rather, they simply arrange for shelf space and the display of merchandise of the manufacturers they represent. See also marketing.

* * *


Universalium. 2010.

Look at other dictionaries:

  • wholesaling — UK US /ˈhəʊlseɪlɪŋ/ noun [U] COMMERCE ► the activity of selling goods to stores, other businesses, etc. rather than to the public: »40% of the business is in wholesaling. »a wholesaling business/group/operation …   Financial and business terms

  • Wholesaling — The sale and distribution of goods to users other than end consumers. Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to industrial, commercial and institutional users. A wholesaler can act as a middleman,… …   Investment dictionary

  • wholesaling — [[t]ho͟ʊlseɪlɪŋ[/t]] N UNCOUNT Wholesaling is the activity of buying or selling goods in large amounts, especially in order to sell them in shops or supermarkets. Compare retailing …   English dictionary

  • wholesaling — Synonyms and related words: agency, barter, bartering, brokerage, buying and selling, consumer preference study, consumer research, consumer survey, dealing, direct mail selling, doing business, exchange, give and take, hard sell, hawking, high… …   Moby Thesaurus

  • wholesaling — n. sale of goods to retailers in mass quantities v. buy or sell in large quantities at a reduced price adj. pertaining to or engaged in the sale of goods to retailers in mass quantities; being on a large scale adv. on a large scale; in large… …   English contemporary dictionary

  • wholesaling — /hohl say ling/, n. the business of selling to retailers, esp. in large quantities (distinguished from retailing). [1790 1800; WHOLESALE + ING1] …   Useful english dictionary

  • Wholesale — Wholesaling is the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services. [ [http://www.wto.org/english/thewto e/acc… …   Wikipedia

  • marketing — /mahr ki ting/, n. 1. the act of buying or selling in a market. 2. the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling. [1555 65;… …   Universalium

  • Enron — For the play, see ENRON (play). Enron Corporation Enron logo, designed by Paul Rand Former type Public company Industry Energy Fate …   Wikipedia

  • Alcoholic beverage control state — ABC store redirects here. For the Hawaiian convenience store chain, see ABC Stores (Hawaii). Alcoholic beverage control states, generally called control states, are those in the United States that have state monopoly over the wholesaling and/or… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.