Wholesale is the type of trade whose target Audience they are other companies or institutions, that is, legal entities. Wholesale trade is, therefore, carried out between two companies and not between the company and the final consumer, as is the case with retail.
Companies that buy from wholesalers can purchase the products to resell to the final consumer (individual) or to use them as input (raw material) for their activities.
In wholesale, the products are cheaper than in retail and are usually sold in large quantities. The main advantage for companies in purchasing products in the wholesale trade is the Lowest price.
How does a wholesaler work?
The attacked usually have large stocks of the same product and usually sell in large quantities. For example, a wholesale cleaning products store does not sell a fabric softener or disinfectant, but rather a large quantity of each product.
It is also common for wholesale stores to determine a minimum quantity to be purchased and thus they are able to offer a lower price. Wholesale prices can be up to 50% cheaper than retail.
Due to lower wholesale prices, retailers are able to resell the products to the final consumer at a higher price and thus secure their profit margin.
See also the meaning of raw material and profit.
Difference between wholesale and retail
What differentiates retail trade from wholesale trade is the target Audience. Retail is the type of commerce aimed at the final consumer, who purchases products for their own consumption or enjoyment.
Wholesale trade is one that takes place between two companies - two CNPJs. In wholesale trade, companies usually buy in larger quantities and lower prices and use the products for the performance of their activities.
The wholesale trade is also called distributor, as it distributes products to the entire retail network. The performance of both types of commerce is responsible for supplying stores in the city, where end consumers will purchase the products they need.
understand what it is CNPJ.
What is attacking?
Atacarejo is a type of business that also sells to end consumers, but has wholesale characteristics. In a wholesaler, prices are lower than in retail and have a high sales volume - which allows them to practice lower prices.
As there is a greater quantity of each product, it has a smaller variety of brands and models, that is, it has a smaller assortment than retail. The pricing in cash and carry is usually differentiated according to the quantity of products - for smaller quantities the value is higher, for large quantities the unit price decreases.
An example of cash-and-carry is the Makro chain, a pioneer in this type of trade in Brazil. Today there are other brands that sell as wholesalers to the final consumer as well, such as Atacadão and Maxxi.
know more about retail and see the difference between wholesale and retail.
