Wholesale
Overzicht
Every time you pick up a product in a shop, there is a good chance it passed through a wholesaler on the way from the factory floor to the shelf. Wholesalers sit at the heart of the distribution chain, buying goods in large quantities from manufacturers and selling them in smaller amounts to retailers, smoothing out the flow of commerce so that producers can focus on making things and shops can focus on selling them.
In this lesson you will explore why wholesalers exist, the services they provide to both manufacturers and retailers, the different types of wholesaler you may encounter, and how changes in technology and consumer behaviour are reshaping the wholesale trade. These concepts appear regularly on both Paper 1 and Paper 2 of the Edexcel Commerce examination.
Doelstellingen
- Understand wholesalers' role in the chain of distribution
- Understand functions of wholesalers: breaking bulk, risk bearing, advice to retailers, offering trade credit, freeing storage space, preparing goods for resale, delivering to retailers
- Understand types of wholesaler: general, cash-and-carry, voluntary chains
- Understand changes in wholesaling and their impact on manufacturers, retailers and consumers
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Lesevaluatie
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- Which of the following is a function of a wholesaler? A) Manufacturing goods B) Breaking bulk C) Setting government regulations D) Collecting taxes Answer: B
- A cash-and-carry wholesaler differs from a general wholesaler because the cash-and-carry: A) Offers trade credit to retailers B) Delivers goods to retailers' premises C) Requires retailers to pay immediately and collect goods themselves D) Only sells to consumers Answer: C
- Which of the following best describes 'risk bearing' by a wholesaler? A) The wholesaler insures goods during transport B) The wholesaler accepts the financial risk of owning stock that may not sell C) The wholesaler guarantees a minimum price to the retailer D) The wholesaler sets the retail price Answer: B
- What is a voluntary chain? A) A government-owned distribution network B) A group of independent retailers organised by a wholesaler under a common brand C) A chain of cash-and-carry warehouses D) A manufacturer's own retail outlets Answer: B
- Which trend has most reduced the role of traditional wholesalers? A) Growth of small independent retailers B) Decline of e-commerce C) Large retailers buying directly from manufacturers D) Increase in trade credit periods Answer: C
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Aanbevolen Boeken
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Leerboekparagraaf
Wholesaling
What is wholesaling, and what are the types of wholesalers?
"Introduction to Business: Wholesaling" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/introduction-business/pages/12-2-wholesaling. Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
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Leerboekparagraaf
The Nature and Functions of Distribution (Place)
What is the nature and function of distribution (place)?
"Introduction to Business: The Nature and Functions of Distribution (Place)" by OpenStax, OpenStax, Rice University, licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Source: https://openstax.org/books/introduction-business/pages/12-1-the-nature-and-functions-of-distribution-place. Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
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