Wholesaling

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Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services.[1] In general, it is the sale of goods to anyone other than a standard consumer.

According to the United Nations Statistics Division, "wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.[2] While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.

Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products.[3] However, with the advent of the internet and e-procurement there are an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia.

In the banking industry "wholesale" usually refers to wholesale banking, providing tailored services to large customers, in contrast with retail banking, providing standardized services to large numbers of smaller customers.

Taxes

Often, in the United States, wholesalers are not required to charge their buyers sales tax, but they sometimes are required to charge a tax at the wholesale level.[4]

Direct selling

Main articles: direct selling and direct marketing

The alternative to selling wholesale to distributors or retailers is to sell retail[5] either through company owned stores or online. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers.[6]

Top wholesalers in U.S


Top U.S wholesalers according to csnews report in 2012.[7]

Ranking 2012 Company/ Headquarters Latest FY (M$) locations served deliveries per week % of sales to chain stores % of sales to Indep. # of warehouses Warehouses (thousands Sq. feet) full employee sales per Sq. foot (thousands $) sales per employee (thousands $) sales per location (thousands $) sales per delivery ($)
1 McLane Co. Inc. 27,30039269 48682 96 4 20 10464 9079 26093007695561
2Core-Mark Holding Co. Inc. 8,11530000 - 5050 28 - 5000 - 1623 271-
3 Eby-Brown Co 4,50021000 - 7030 7 2250 220020002045 214-
4 H.T. Hackney Co 4,000 20000 - - - 28 - - - - 200 -
5 GSC Enterprises Inc. 1300 8000 6500 6832 6 1676 1315 776 989 163 200
6 Farner-Bocken Co. 1200 - - 50 50 1 450 9302667 1290--
7 Harold Levinson Associates Inc. 120015000 15000 10 90 1 550 475 2182 2526 80 80
8 Imperial/Harrison Super regional 1,025 2950 3120 6436437944727042293347329
9 Amcon Distributing Co.10045000---6601-1671-201-
10 S. Abraham & Sons Inc.939361430795842244047721341969260306
11 Consumer Product Distributors inc.926 369541854456430057430871613 251221
12 Chambers & Owen Inc.765--5050126530028872550--
13 Liberty USA Inc.700180016507030115025046672800389424
14 Garber Bros. Inc.695240031006040120024634752825290244
15 J.T. Davenport & Sons Inc.6002000-70302211-2844-300-
16 Cooper Booth Wholesale Co. 540 1750 1175 20 80 1 110 187 4909 2888 309 460
17 Atlantic Dominion Distributors486210016006535218012027004050231304
18 Tripifoods Inc.45827502970928125021018322181167154
19 Stephenson Wholesale Co. Inc.4053500453335652022922005138711689
20 Pine State Trading Co.4005000-55455246-1626-80-
21 Harbor Wholesale Grocery Inc. 391 2500 1700 40 602300265 1303 1475 156 230
22 Southco Distributing Co. 343 1400 2200 45 55 1 225 180 1524 1906 245 156
23 Richmond-Master Distributors Inc. 300 1400 810 30 70 5 210 - 1429 - 214 370
24 Thomas & Howard Co. Inc. 250 1500 2300 47 53 3 300 300 833 833 167 109
25 Allen Brothers Wholesale Dist. Inc.230 1358 930 33 67 1 65 72 3538 3194 169 247

See also

Wikimedia Commons has media related to Wholesalers.
Look up wholesale in Wiktionary, the free dictionary.

References

  1. WTO - World Trade Organization
  2. UNSTATS - United Nations Statistics Division
  3. Chandler, A. D. (1994). Scale and scope The Dynamics of Industrial Capitalism. Cambridge, Mass.: Belknap Press of Harvard Univ. Press. p. 29.
  4. Federal Manufacturers', Wholesale, and Retail Sales Taxes from TaxAnalysts.org
  5. "Als Lieferant mitmachen" (in German). eu-lieferanten.de. Retrieved 9 April 2013.
  6. Ian Mount (March 6, 2013). "Clothing Companies Trying to Find More Direct Paths to Customers". The New York Times. Retrieved March 7, 2013.
  7. http://www.csnews.com/userfiles/CSN_top25.pdf
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