Editing Wholesaling

{{short description|Sale of goods or merchandise to retailers rather than end consumers}}
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[[File:Birmingham Wholesale Markets.jpg|thumb|The [[Birmingham Wholesale Markets]]]]

'''Wholesaling''' or '''distributing''' is the sale of goods or [[Merchandising|merchandise]] to retailers; to [[manufacturing|industrial]], commercial, [[institutional]] or other professional business users; or to other '''wholesalers''' ('''wholesale businesses''') and related subordinated services. In general, it is the sale of [[good (economics)|goods]] in [[bulk sale|bulk]] to anyone, either a person or an organization, other than the end consumer of that merchandise. Wholesaling involves purchasing goods in bulk, usually directly from the manufacturer or source, at a discounted rate. Retailers then sell these goods to end consumers at a higher price, generating a profit.<ref>{{Cite journal |last=Kolodny |first=Joseph |date=September 1949 |title=The Mechanics of Wholesaling |url=http://dx.doi.org/10.2307/1247896 |journal=Journal of Marketing |volume=14 |issue=2 |pages=225–231 |doi=10.2307/1247896 |jstor=1247896 |issn=0022-2429}}</ref>

According to the [[United Nations Statistics Division]], ''wholesale'' is the [[:wiktionary:resale|resale]] of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an [[Law of agency|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, [[breakbulk cargo|break-bulk]], repack, and redistribute in smaller lots.<ref>{{Cite web |title=United Nations Statistics Division – Classifications Registry |url=http://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=9&Lg=1&Co=6 |url-status=live |archive-url=https://web.archive.org/web/20180321131122/https://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=9&Lg=1&Co=6 |archive-date=21 March 2018 |access-date=8 May 2018 |website=unstats.un.org}}</ref> 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 [[:wiktionary:congregate|congregated]].

Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products.<ref>{{Cite book |last=Chandler |first=A. D. |title=Scale and scope The Dynamics of Industrial Capitalism |publisher=Belknap Press of Harvard Univ. Press. |year=1994 |location=Cambridge, Massachusetts |pages=29}}</ref> However, with the advent of the internet and [[e-procurement]] there is an increasing number of wholesalers located nearer to the manufacturers in China, [[Taiwan]], and Southeast Asia. The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs.

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.

In real estate, wholesaling is the act of contracting to purchase real property, and assigning that contract to an investor.

==Taxes==
Often, in the United States, wholesalers are not required to charge their buyers [[sales tax]], if the buyer has a resale license in the state the wholesaler is located. Out-of-state buyers are not charged sale tax by wholesalers.<ref>Michael Gravette, wholesaler for 32 years.</ref>

In [[China]], wholesalers are subject to a Value-Added Tax (VAT) of either 9% or 13% on imported goods, depending on the type of product.<ref>{{Cite web |title=What taxes are involved when goods are imported into China? |url=https://www.eusmecentre.org.cn/faq/what-taxes-are-involved-when-goods-are-imported-into-china/#:~:text=Value-added%20tax:%20since%20April,6%25,%20applicable%20to%20services. |access-date=2024-10-31 |website=EU SME Centre: China Market Research, Training, Advice {{!}} Get Ready for China |language=en-US}}</ref><ref>{{Cite web |date=2021-12-22 |title=Import-Export Taxes and Duties in China in 2022 |url=https://www.china-briefing.com/news/import-export-taxes-and-duties-in-china-2022/ |access-date=2024-10-31 |website=China Briefing News |language=en-US}}</ref> Additionally, consumption tax is levied on products such as [[tobacco]], [[Alcoholic beverage|alcohol]], and [[luxury goods]]. These taxes are part of China's broader strategy to promote domestic consumption and regulate imports.<ref>{{Cite journal |last=Zhang |first=Deyong |date=2022-09-01 |title=Consumption Tax Reform in Accelerating the Establishment of a New Development Paradigm |url=https://www.degruyter.com/document/doi/10.1515/cfer-2022-0013/html |journal=China Finance and Economic Review |language=en |volume=11 |issue=2 |pages=117–128 |doi=10.1515/cfer-2022-0013 |issn=2196-5633}}</ref> On the other hand, [[Vietnam]] imposes a standard VAT rate of 10% on most goods and services, with exemptions for certain agricultural products and essential services.<ref>{{Cite book |last=Inc IBP |first= |url=https://www.google.com/books/edition/Vietnam_Doing_Business_and_Investing_in/d1rvCwAAQBAJ?hl=vi&gbpv=1&dq=Vietnam+imposes+a+standard+VAT+rate+of+10%25+on+most+goods+and+services&pg=PA258&printsec=frontcover |title=Vietnam: Doing Business and Investing in Vietnam Guide Volume 1 Strategic, Practical Information and Contacts |date=2015-06-01 |publisher=Lulu.com |isbn=978-1-5145-2818-1 |language=en}}</ref><ref>{{Cite web |last=Nam Nguyen |date=2022-01-08 |title=Wholesale suppliers Vietnam |url=https://sourcevietnam.com/ |access-date=2024-10-31 |website=SourceVietNam |language=en}}</ref> In [[Europe]], Value-Added Tax (VAT) rates vary among member states, with a standard rate that cannot be less than 15%.<ref name=":1">{{Cite web |title=VAT rules and rates: standard, special & reduced rates |url=https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm?form=MG0AV3 |access-date=2024-10-31 |website=Your Europe |language=en}}</ref><ref>{{Cite web |title=VAT - European Commission |url=https://taxation-customs.ec.europa.eu/taxation/vat_en#:~:text=about%20VAT%20Directive-,VAT%20rates,taken%20from%20an%20agreed%20list. |access-date=2024-10-31 |website=taxation-customs.ec.europa.eu |language=en}}</ref> Countries like [[Hungary]], [[Croatia]], [[Denmark]], and [[Sweden]] have higher standard VAT rates, while [[Luxembourg]], [[Malta]], [[Cyprus]], [[Greece]], [[Germany]], and [[Romania]] have lower rates.<ref>{{Cite web |last=Mengden |first=Alex |date=2024-01-30 |title=2024 VAT Rates in Europe |url=https://taxfoundation.org/data/all/eu/value-added-tax-2024-vat-rates-europe/?form=MG0AV3 |access-date=2024-10-31 |website=Tax Foundation |language=en-US}}</ref>

==Direct selling==
{{Main|Direct selling|Direct marketing}}
The alternative to selling wholesale to distributors or retailers is to sell retail<ref>{{Cite web |title=Als Lieferant mitmachen |url=http://www.eu-lieferanten.de/ |url-status=live |archive-url=https://web.archive.org/web/20130411083054/http://www.eu-lieferanten.de/ |archive-date=11 April 2013 |access-date=9 April 2013 |publisher=eu-lieferanten.de |language=de}}</ref> either through company-owned stores or [[E-commerce|online]]. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers.<ref name="NYT03613">{{Cite news |last=Mount |first=Ian |date=6 March 2013 |title=Clothing Companies Trying to Find More Direct Paths to Customers |work=The New York Times |url=https://www.nytimes.com/2013/03/07/business/smallbusiness/clothing-companies-try-to-sell-directly-to-consumers.html |url-status=live |access-date=7 March 2013 |archive-url=https://web.archive.org/web/20130307171519/http://www.nytimes.com/2013/03/07/business/smallbusiness/clothing-companies-try-to-sell-directly-to-consumers.html |archive-date=7 March 2013}}</ref> Direct selling is a business model wherein sellers sell the goods directly to the end customer.<ref>{{Cite journal |title=July |date=2020 |url=http://dx.doi.org/10.5040/9781350115408.ch-007 |journal=Some Things You Should Know |publisher=Bloomsbury Academic |doi=10.5040/9781350115408.ch-007 |isbn=978-1-3501-1340-4 |access-date=24 November 2021}}</ref>

==See also==
{{Commons category}}
{{Wiktionary|wholesale}}
{{Portal|Business}}

* [[Business-to-business]]
* [[Cash and carry (wholesale)]]
* [[Distribution (marketing)]]
* [[Jobbing house]]
* [[Supply chain]]
* [[Supply network]]
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==References==
{{Reflist|30em}}

{{Authority control}}

[[Category:Wholesaling| ]]
[[Category:Freight transport]]