Distribution is the process of purchasing, storing, and distributing products when required. Wholesale distribution is the process of purchasing the products directly from the suppliers or manufacturers and reselling them to the retailers without transforming them in any way. They products are stored in warehouses and sold when there is a demand.
Many wholesale distributors assemble, sort, pack and sell the goods they offer. This is called bulk breaking. The warehouse infrastructure requirement is based on the type of products stored. For example, pharmaceutical products require the products to be maintained at a certain temperature and wholesale distributors of pharmaceutical products must have a facility for refrigeration.
Apart from saving money for their customers, wholesale distributors reduce risks to suppliers and customers by maintaining inventories. Their other functions include quick delivery, financing customers through credits, supplying information about the market to the manufacturers, and bearing risks by absorbing the costs of damage.
Wholesale distributors choose their target market. They then find profitable customers and build strong relationships with them. They decide the inventory and maintain sufficient stock for immediate delivery. The goods are purchased in bulk and hence the wholesalers pay low prices. Then they mark them up by a percentage. The wholesalers also promote their products apart from deciding the location of distribution. They sometimes promote their products using the reputation of their suppliers.
Over the last ten years, the wholesale industry in US has accounted for one quarter of the productivity improvements in the economy. Some wholesale distributors also offer drop ship facilities. Drop shipping involves shipping the products directly to the end customers. This allows retailers to get products at wholesale prices and focus their efforts on selling their products without worrying about logistics.
Related Articles of Interest :
-
Wholesale Food Distributors
10 August 2010 8:30 PM |
No Comments
Wholesale food distributors are licensed to supply food items to retailers and large institutional clients. The food items in food wholesaling include groceries, packaged frozen food, fish and seafood, fresh fruits and vegetables, meat and meat products, dairy products that include butter, cheese, cream and...
-
Wholesale Clothing Distributors
10 August 2010 8:30 PM |
No Comments
Wholesale clothing distributors purchase cloth, apparel, trimmings, home furnishing and accessories from manufacturers in large lots and resell them in smaller lots to retailers. Wholesale distributors usually work from warehouses or offices with no display of their merchandise. They interact with their customers through salespeople,...
-
DVD Wholesale Distributors
10 August 2010 8:30 PM |
No Comments
Wholesale DVD distributors license the DVD distribution rights from studios producing the movies and supply DVDs to retail stores, online merchants, DVD rental companies and mail order stores. Often the DVDs are manufactured or imported by wholesalers themselves. DVDs are sold as bundles containing different...
-
Wholesale DJ Equipment
10 August 2010 8:30 PM |
No Comments
DJ equipment is first purchased by wholesalers in bulk quantities from the manufacturers themselves. This equipment includes decks, CD players, VCD players, DVD players, MP3 players, sound mixers, equalizers, speakers, headphones, etc. Wholesalers buy the equipments from the manufacturers at wholesale rates. Wholesale rates are...
-
Wholesale Shipping Supplies
10 August 2010 8:30 PM |
No Comments
Due to the nature of the business, shipping supplies are often needed in large numbers. For example, boxes suitable for different uses and occasions on the ship are required in bulk quantities. Other supplies like labels, tags, and stickers are also needed in large quantities....
-
Wholesale Stuffed Animals
10 August 2010 8:30 PM |
No Comments
It goes without saying that wholesale purchase of stuffed animals is a great way to save money for retailers and bulk users such as gift delivery services. Manufacturers sell stuffed animals wholesale to retailers, professional business users, and other bulk users. Stuffed animals are ideally...
-
Wholesale Computer Parts
10 August 2010 8:30 PM |
No Comments
Wholesale computers or wholesale computer parts are mainly for those who require these items in bulk quantities for commercial purposes. Wholesale computer parts are generally supplied to software companies or other computer-manufacturing units. These parts include the computer screen or monitor, the chips, disks, floppies,...
-
The Benefits of Wholesale Flower Bulbs
10 August 2010 8:30 PM |
No Comments
A great way to save money when buying flowers is to buy them wholesale. Flower bulbs are available at wholesale prices for professional gardeners, landscapers, and suppliers. That is a well-known fact. After all, these people spend thousands of dollars buying flower bulbs and other...
-
Wholesale Perfume
10 August 2010 8:30 PM |
No Comments
For most people, buying a perfume means visiting their favorite department store and picking up their choice of perfumes over the counter. Few people are aware that it is possible to get perfumes at wholesale rates. To purchase goods from a real wholesaler means that...
-
Wholesale Body Jewelry Distributors
10 August 2010 8:30 PM |
No Comments
Traditionally, there was a limitation about choosing distributors of wholesale body jewelry, since one had to choose from those existing in the neighborhood or their city. However, the advent of the Internet has changed all that. A quick search on the net will give you...