A retailer is a company or person that buys large quantities of products from manufacturers, growers, other manufacturers and retailers. Retailers store them in warehouses and sell them to retailers (shops and stores) and businesses.
Supermarket retailers are medium-sized retailers that sell more to retailers, other retailers, commercial, industrial, or institutional consumers. They buy primarily for resale or business use.
The merchant business model is based on being a mediator – a go-between. They work between a manufacturer of a product and other businesses that want to sell that product.
According to Collins. Forbeshints.com, wholesale states:
“A salesman is a person whose business buys a lot of things and then sells them at low prices, for example in stores.”
Vendors focus on B2B rather than B2C. B2B represents business-to-business, that is, one company that sells to another company. B2C stands for business-to-consumer. Vendors, for example, focus on B2C.
Vendor – widgets
As this picture shows, the widget seller (fake) buys in large quantities – in bulk – from the widget manufacturer. It sells – in small groups – to hundreds of widget stores across the country. Customers enter stores and purchase individual widgets.
We charge a price while retailers sell to retailers wholesale prices.
Seller compared to distributor.
We call the seller who owns not only competing lines or products the distributor. Distributors often play similar roles for retailers. However, distributors often provide sophisticated services.
Unlike official product distributors, most retailers do not offer high levels of product support. Although distributors are directly supported by the manufacturer, retailers are generally not supported.
Although retailers may sell competing products at the same time – such as competing toothpaste products – distributors do not.
Retailers do not sell to individual buyers. If you – one buyer – want to buy something to use for yourself, you can’t buy it from a retailer You have to go to a retailer.
The ‘wholesale’ Etymology
The Online Etymology Dictionary states that the term ‘Wholesale’ originated back in the 15th century in Britain, with the meaning ‘plural.’ It came from the adjectives ‘All’ and ‘sales.’
Etymology is the study of the origin of words and how their forms and meanings have changed.
The largest retailers in the USA
Of the seven in the top ten American retailers listed above, chain stores represent more than half of their total sales. (Data source: Wikipedia)
The seller buys in bulk
Retailers buy goods in bulk, that is, at very high prices. Typically, they reassemble, filter, repackage, or distribute products in smaller units.
Since they buy goods at much higher prices than us in stores, they pay a much lower unit price.
A retailer needs to buy at a cheaper price from the producers than the seller because he needs to make a profit in order to survive as a business.
The difference is how much a person has paid for something if he has sold it to a margin. We call inflation a sign.
Although retailers often operate from private sources, the sale of certain goods takes place in specific markets.
For example, food is often sold in markets where large numbers of traders gather.
Why use a reseller?
Imagine you have a small business that sells mobile covers / protectors. On average, she sells 500 covers every month.
You get a mobile cover maker who will sell all the units you want to sell for $ 9 each. However, buyers are willing to pay more than $ 11 each, giving you a minimum of $ 2 per sale.
If you want to earn more than $ 1,000 a month, you will need to sell at larger numbers or find a cheaper supplier.
The phone cover seller, however, who buys 100,000 phone covers per month from the manufacturer, gets them at a much lower price – $ 2.50 each.
That seller is willing to sell you 500 phone covers every month for $ 4.50 each. Now, your profit (margin) – if you sell them for $ 11 – is $ 6.50 per cover.
That’s a huge increase from your previous profit per capita for just $ 2. Thanks to the seller, your monthly profit jumps from $ 1,000 to $ 3,250.
Video – What is a wholesale store?
This video discusses what merchants are, what they do, and why businesses use them.
