Wholesale Trade Video Lecture | Business Studies for Grade 11

wholesale trade trade we know that an
organization may sell its goods within
the country or outside the country in
order to earn profit trade which takes
place within a country is called
internal trade internal trade will be
classified into wholesale trade and
retail trade wholesale trade wholesale
trade is the purchase and sale of goods
and services in large quantities for the
purpose of resale or intermediate use
traders dealing in wholesale trade are
called wholesale traders or wholesalers
wholesalers serve as an important link
between manufacturers and retailers they
not only enable producers to reach large
number of buyers spread over a wide
geographical area through retailers but
perform a variety of functions in the
process of distribution of goods and
services characteristics of wholesale
trade following other characteristics of
wholesale trade in the wholesaler
generally deals in one of you variety of
items he's a specialist trader in a
particular line example machinery
textiles medicines etc
be wholesalers buy curds from the
manufacturers and producers in bulk and
sell them to the retailers and sometimes
to consumers directly see wholesale
trade requires a large amount of capital
to be invested this is because purchases
are made in bulk advances are given to
manufacturers and the goods are
generally sold on credit but it also
requires large storage space D generally
people engaged in wholesale trading of
similar Goods half their business
premises located in the same area for
the convenience of the retailers for
example wholesale grain market wholesale
paper market etc these are wholesale
markets dealing in one particular
product e wholesalers have direct
contact with manufacturers but have in
direct contact with consumers as they
generally deal with the retailer's F
besides selling wholesale traders are
also involved in some other activities
like packaging creating advertising
market research to name a few
service of wholesalers wholesalers
provide various services to the
manufacturers as well as to the
retailers and provide immense help in
the distribution of goods and services
wholesalers provide time and place
utility by making the products available
at a place where these are needed and at
a time when these are needed for
consumption or use let us now understand
the various services provided by
wholesalers to manufacturers as well as
to retailers services to manufacturers
wholesalers provide the following
services to the producers of goods and
services one facilitates large-scale
production both sale traders enable
manufacturers to take advantages of
economies of large scale by placing the
order of large quantities to bearing
risk wholesaler stealing goods in their
own name take delivery of the goods in
bulk and keep the purchased goods in
their warehouses during the process
wholesalers fare risks such as the risk
of falling prices theft beverage
spoilage fire and so forth
three financial assistance wholesale
traders offer financial assistance to
manufacturers by making cash purchases
or by providing them advance money
against bulk orders for market
information wholesale traders have an
important source of market information
for manufacturers wholesalers collect
important market information with
respect to changes in demand competition
and so on from the retailer's and pass
on to the producers five facilitate to
concentrate on production wholesale
traders enable the producers to
concentrate on production activities by
taking responsibility of distribution of
goods to a large number of retailers who
in turn sell the goods to a large number
of consumers six facilitate continuity
wholesalers facilitate continuity of
production activity throughout the year
by purchasing goods as and when these
are produced wholesale traders relieve
the manufacturers from warehousing
function by making arrangements for
holding large stock of goods in
warehouses or godowns
services to retailers the services that
wholesalers offer to retailers are one
availability of goods wholesale traders
assure regular supply of goods to
retailers by maintaining adequate stock
of varied commodities
this enables the retailer's to buy goods
in small quantities as and when required
to marketing support wholesalers
undertake advertising and sales
promotion of products which help to
increase the sales of retailers three
grant of credit wholesalers provide
financial support to retailers by
supplying goods to them on credit for
specialized knowledge all sale traders
provide advice to retailers regarding
the quality durability price and timings
of purchase of products wholesalers also
advise retailers on the techo of retail
outlets allocation of shelf space and
demonstration of certain products five
risk-sharing
wholesale traders purchase goods in bulk
and sell them in smaller quantity to
retail traders this way
wholesalers help retailers to avoid the
risk of storage pilferage obsolescence
reduction in prices and demand
fluctuations since retailers need not
maintain large stock of goods in a
nutshell purchase and sale of goods and
services in large quantities for the
purposes of resale or intermediate use
is referred to as wholesale trade
wholesalers perform a number of
functions in the process of distribution
of goods and services and provide
valuable services to manufacturers and
retailers the services provided by
wholesalers
manufacturers include one facilitating
large-scale production two bearing risk
three providing financial assistance for
expert advice five help in marketing
function six facilitating continuity and
seven storage the services provided by
wholesalers to retailers include one
availability of goods to marketing
support three grant of credit for
specialized knowledge and five risk
sharing