Wholesale trade - the activities of the company for the sale of wholesale batches of goods .
Depending on corporate policy and negotiations, the subject of wholesale trade:
- can act as a supplier or seller of goods (supplier of cement, a wholesale store of flowers) ,
- determines the criteria for compliance with the bulk batch (amount of shipment) ,
- may not sell smaller batches of goods (it is unprofitable to deliver the railway part-time car) ,
- to have convenient conditions for small, medium, large wholesale.
In the simple case, the contract of purchase / sale does not regulate the further use of the purchased goods. They may be resold.
Wholesale functions in product distribution
The most important tool for selling large quantities of goods for manufacturers. Depending on the segment, the distribution of products from the manufacturer occurs according to not always advantageous scenarios. For example, wholesale firms have formed a chain of profit, affecting the demand:
- Manufacturing plant ,
- (price-1) Trading platforms of building materials
- (price-2) Markets, Building materials hypermarkets ,
- (price-3) Retail stores ,
- (expensive) Construction crews,
- (expensive) individuals
Dealer networks allowed manufacturers to be centrally engaged in wholesale trade. Under a dealership agreement, enterprises receive regular deliveries without resale rights, possibly with established RRCs (“recommended retail prices”). So Swiss watches are delivered to Russia.
Legislative Definition and Sale to Individuals
“ Wholesale trade is a type of trading activity associated with the purchase and sale of goods for use in business (including for resale) or for other purposes not related to personal, family, home and other similar uses;” [1]
In fact, the organization selling the person is not obliged to control how the goods will be used. Wholesale organizations (OCHO) have the right to use a cash register to organize retail sales to individuals who are not registered as individual entrepreneurs. The sale of goods in bulk to individuals who are not individual entrepreneurs for cash does not contain a prohibition or restrictions Federal Law No. 54-ФЗ of May 22, 2003 “On the Use of Cash Management in Cash Cash Payments and / or Payments cards, nor the Directive of the Central Bank of Russia dated 20.06.2007 N 1843-U “On the maximum amount of cash settlements and spending cash received at the cash desk of a legal entity or an individual entrepreneur cash desk”, nor other legal acts.
- Retail