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Wholesaling: Dismana Otcdp01 - Group 2 - Balicat, de Guzman, Macabuhay, Salas

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74 views16 pages

Wholesaling: Dismana Otcdp01 - Group 2 - Balicat, de Guzman, Macabuhay, Salas

Uploaded by

RuRu Angeles Sangual
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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WHOLESALING

DISMANA OTCDP01 | GROUP 2 | BALICAT, DE GUZMAN, MACABUHAY, SALAS


LEARNING OUTCOMES

Wholesaling

• Definition
• Importance and Functions
• Classifications of Wholesaling/Wholesalers
• Formats
• Who are Wholesalers?
• Challenges
• Company whose into Wholesaling Distribution
WHOLESALING

• Wholesaling became particularly advantageous after the introduction


of mass production and mass marketing techniques in the 19th century.

• According to AdAge

“By 1880s, a number of marketers achieved unprecedented


economies of scale, expanded their distribution and reached for
coast-to-coast markets, Mail-order selling [the precursor of today’s
ecommerce] flourished with the development of the national railroad
system and the introduction in 1896 of rural free mail delivery.”
WHOLESALING

• According to Philip Kotler:

“Wholesaling consist of the sale and all


activities in selling goods or services to those
who buy for resale or business use.”
FUNCTIONS OF WHOLESALING

Selling and Sales force help manufacturers reach many small business
promoting customers at a relatively low cost.

Select items and build the assortment their customers


Buying and assortment building
need.

Bulk breaking Buy large carload lots and breaking the bulk into smaller units.
FUNCTIONS OF WHOLESALING

Hold inventories, and reduce inventory costs and risks to


Warehousing
suppliers and customers.

Provide quicker delivery to buyers because they are closer


Transportation
to the buyers.

Grant credit, and finance suppliers by ordering early and


Financing
paying bills on time.

Absorb some risk by taking title and bearing cost of theft,


Risk bearing
damage, spoilage, and obsolescence
FUNCTIONS OF WHOLESALING

Market
Supply competitor activities, new products, price developments.
information

Management service Training sales clerks, helping with store layouts


and counseling and displays.
WHO ARE WHOLESALERS?

Wholesalers sell to retailers or


other merchants and industrial,
institutional, and commercial users,
but do not sell in significant to
ultimate consumers.
CLASSIFICATIONS OF WHOLESALERS

Controls wholesaling and perform all functions.


Full
Example: Company distributors
Service

Limited The length of service are limited


Service

• Handling products in relatively large quantities and reselling


the products in smaller quantities to retailers.
Merchant wholesalers • Merchant wholesaler names include jobber, distributor,
industrial distributor, supply house, assembler, importer,
exporter, or simply, wholesaler.

These people bring the buyer and seller together and rarely handle the
goods themselves and get a commission out of all transactions.
Brokers and Examples: Life Insurance Agents, Credit Card Agents, Real Estate
Agents Agents

Include agricultural produce business, petroleum bulk handlers and


Miscellaneou
auction companies.
s
WHOLESALING FORMATS

1. General Merchandise
Offer broad but shallow product lines that are mostly of interest to retailers
carrying a wide assortment of products.

2. Specialty Merchandise
Focus on specific product lines or industries
and supply a narrow assortment of products.

3. Contractual
Supplied only to the retailers involved in the
contractual arrangement.
WHOLESALING FORMATS

4. Industrial Distributors
Directs their operations to the business customer rather than to other
resellers. Depending on the distributor, they can carry either broad or narrow
product lines.

5. Cash-and-Carry
Involved buyers visiting a wholesaler’s facility where they selected their
orders, paid in cash, and then handled their own deliveries to their place of
business.
6. Truck
Primarily run out of a truck that is stocked with products. These wholesalers
often have assigned geographic territories where they regularly visit buyer’s
locations.
WHOLESALING FORMATS

7. Rack Jobber
Similar to truck wholesalers but rack jobbers are assigned and manage
space within a retailer’s store. It is also responsible for maintaining inventory
and may even handle other marketing duties.

8. Drop Shipper
They are shipping coordinators who receive orders from
customers and then place the order with a product
supplier.
CHALLENGES IN WHOLESALING

1. Disintermediation

The growth of the Internet as a


communication and distribution channel has
lead many to conclude that wholesaling will
lose its importance as manufacturers and
final buyers learn to transact directly.
CHALLENGES IN WHOLESALING

2. Facility Location

Wholesalers who are heavily in product shipment may spend


considerable time evaluating sites for locating facilities.
CHALLENGES IN WHOLESALING

3. Transportation Costs

For wholesalers involved in transporting products, the worldwide


rise in fuel costs has forced a close examination of how they
handle product distribution.
• One of the largest wholesale
websites and leading global
B2B marketplace.

• A merchant wholesaler type


and general merchandise
format
REFERENCES
Alibaba.com. (2020, October 24). B2B vs. B2C eCommerce: understand the key differences.
https://seller.alibaba.com/businessblogs/pxa65asb-b2b-vs-b2c-ecommerce-understand-the-key-differences

DeFiore, A. (n.d.). THE CURIOUS HISTORY OF WHOLESALING AND HOW THE BENEFITS ARE SPREADING TO
“EVERYONE.” Https://Www.Wholesaleforeveryone.Com/. Retrieved July 14, 2021, from
https://www.wholesaleforeveryone.com/business/curious-history-of-wholesaling/

Ferreira, N. (n.d.). Alibaba Guide: The Secrets to Buying from Alibaba. StartupBros. Retrieved July 15, 2021, from
https://startupbros.com/buying-from-alibaba/#What%20is%20Alibaba?

Gadekar, S. (2012, May 6). Wholesaling [Slides]. SlideShare. https://www.slideshare.net/gadekar1986/wholesaling-


12816042

Importance of wholesaling - source Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Wholesale Formats: Part 1 (2021). From Wholesaling Tutorial. KnowThis.com. Retrieved July 16, 2021 from
https://www.knowthis.com/wholesaling/wholesale-formats-part-1/

Wholesale Formats: Part 2 (2021). From Wholesaling Tutorial. KnowThis.com. Retrieved July 16, 2021 from
https://www.knowthis.com/wholesaling/wholesale-formats-part-2/

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