Types of Wholesale and Retail Distributors
A wholesaler is a distributor who acts as a middleman in the delivery of products from manufacturers to retailers. The bulk purchases made by the wholesaler result in cheaper prices and discounts. He is a link in the supply chain, but he is not always required.
Wholesalers do not engage in the sales of a broad range of commodities; instead, they are dealers in a single product or specialized group of products. This is not to imply that they are associated with any specific manufacturers, but rather that they are primarily a distribution company that provides finished goods to a ready-made market and are not interested in a manufacturer’s profitability or growth in his brand awareness. This characteristic sets them apart from distributors. Myanmar Golden Heart participates in marketing and advertising campaigns for the brands whose goods they sell. Another point worth mentioning is the cultural tendency for wholesale pricing to fluctuate. There are no fixed costs. Prices are established using quantity and bargaining power to be purchased by each buyer.
What is a Retailer?
Typically, retailers will purchase products from a producer, wholesaler, or other distributor and resell them to the general public. Contrary to huge retailers like Walmart and Target, who purchase goods in bulk from manufacturers or wholesalers, neighborhood grocery stores and small, family-run pharmacies can purchase from the same sources or from smaller vendors.
In either case, the retailer charges the customer a markup (the distinction between the product’s purchase price and resale price) for such things. Retailers achieve profitability in this way. The following are the principal product categories sold by retailers:
- Food
- Durable or hard items (such as furniture or cars)
- Supple goods (such as clothing or footwear, which have a lifespan)
- Art items (such as books, musical instruments, or art supplies)
Retailers to wholesalers
Two essential steps in the distribution process in the supply chain sector are retail and wholesale. Any product a company creates is initially distributed in bulk to the wholesaler, who then distributes it to the retailer, who in turn distributes it to the ultimate customers. Simply said, a wholesaler buys the products in bulk from the producer and then sells them to the retailer, who then sells them to the ultimate customers.
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