The Nature of the Wholesale Trade Industry

Most of us normally buy everyday goods andnarrow range of commodities, such as very specific
necessities from superstores, and other retail outlets.machine tools; while others sell a wide-ranging goods,
Superstores, gas stations, department stores,such as all the equipment essential to open a new
different branded products, are some examples ofstore, including shelving, light fixtures, wallpaper, floor
retail outlets. These are called retail outlets becausecoverings, signs, cash registers, accounting ledgers,
they sell products at retail price, and not wholesaleand perhaps even some merchandise for resale.
price, meaning, that they keep a certain significantWholesale trade firms play an extremely vital role in
percentage of the selling price as their own profit.the improvement of economy. They act as the
Now, where do these retailers buy their goods from?intermediary in the relations between the
Naturally, they buy it from wholesalers. Many times,manufacturing party, and the final customers. The
offices and universities also buy goods frommanufacturers sell their product to the wholesalers,
wholesalers. This is because they need stationary andwho in turn sell to the retailers. Thus, the
other supplies in large quantities, and the best optionmanufacturer does not need to keep contacts with
for them is to buy from wholesalers.the different customers; this is taken care of by the
The wholesale trade industry has different sizes andwholesaler. They provide services such as customer
scopes. This is because wholesale products are notservice, order processing, and technical support, and
limited to a certain item; rather, they apply to almosttherefore support the manufacturers. Since they are
all the products sold in the world. They sell any andwholesalers, they usually have warehouses and
every type of good. Companies which manufacturestorerooms where they can keep the products until
products may buy their raw materials fromthe customer acquires them. Because of these
wholesalers, for example, a textile productionwarehouses, the manufacturers can produce their
company may buy cotton from one wholesaler, andgoods in large quantities, and have the wholesalers
dye from another. Many times, schools, universities,store them, and the customer can buy goods in bulk
and offices buy items which are used in abundance inas needed. This means they may store goods that
the normal course of their operation, such asneither manufacturers nor retailers can store until
stationary, furniture, and so on. Similarly, aconsumers require them. In so doing, they fill
departmental store may buy clothing, crockery, andnumerous positions of the economy. They provide
other items in wholesale, and then resell at retail.businesses a nearby source of goods made by many
Wholesale traders may sell one particular item, fromdifferent manufacturers; they provide manufacturers
one manufacturer, or a particular item from differentwith a controllable number of customers, while
manufacturers. They may also sell different itemspermitting their goods to reach a huge number of
from one manufacturer, and different items fromusers.
different manufacturers. Some wholesalers sell only a