Internal Trade - Wholesale Trade

Wholesale trade means buying goods in large quantities from manufacturers to sell them to retailers. A wholesaler is the person who does this work.

• Wholesalers purchase goods from producers and sell them to retailers, acting as both buyers and sellers.
• They help move goods from producers to consumers by making distribution easier.

1.  According to Philip Kotler, “Wholesaling includes all activities involved in selling goods or services to those who buy for resale or for business use.”
2. According to Evelyn Thomas, “A true wholesaler is himself neither a manufacturer nor a retailer but acts as a link between the two.”

1. Large Purchase: Buy in bulk, sell to retailers.
2. Storage: Store goods to balance supply and demand.
3. Transportation: Use own vehicles for delivery.
4. Financial Help: Pay manufacturers upfront.
5. Market Information: Share market insights with manufacturers.
6. Risk Bearing: Handle risks like price changes and storage.
7. Marketing Activities: Support advertising and promotions.

1. Stock of Goods: Maintain a large stock for quick retailer access.
2. Regular Supply: Ensure steady supply, reducing retailer storage needs.
3. Risk Bearing: Handle risks like price changes and stock storage.
4. Financial Support: Provide credit and discounts to retailers.
5. Market Information: Share trends, new products, and buying advice.
6. Sales Promotion: Assist with advertising and product promotion.

A wholesaler purchases large consignments of mobile phones directly from manufacturers and resells them in smaller quantities to electronics shops. This way, the manufacturer gets bulk sales, and retailers can restock as needed without heavy investment.

• Wholesale trade connects producers to retailers through bulk buying and selling.
• Provides crucial services such as storage, transportation, financing, risk-bearing, and information sharing.
• Helps stabilize market prices and ensures efficient flow of goods.
• Wholesalers do not sell directly to the end consumer.