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Retail Buying

Notes Introduction

Wholesaler may be defined as the middlemen who operate between the producers (from whom
they purchase goods) and the retailers (to whom they sell goods). Wholesaler refers to any
individual or business firm selling goods in relatively large quantities to buyers (retailers)
other than the ultimate consumers. Thus, the manufacturers who sell their products directly to
retailers may also be regarded as wholesalers. The specialised knowledge and skill of wholesalers
increases the efficiency of the distribution network. The wholesalers provide important services
and solve the problems of both the manufacturers and the retailers. In any large organization,
millions of dollars are spent on outsourcing. Most large organizations are outsourcing those
activities that are either not cost efficient if done in-house or not core to their businesses. One of
the most critical steps in outsourcing is vendor selection, which is a strategic decision. The
decision processes surrounding sourcing are complicated by the very nature of uncertainty
involved in the sourcing process and by poor vendor management.
The evaluation of vendors is used to strengthen the supply chain processes. Finally, the vendors
have to be rated correctly keeping in view the importance of such relationships. Vendors,
suppliers, distributors and wholesale buying groups to help find the best products at the best
prices for your retail store. Bargaining is an age-old practice that is still common in the
marketplace in many countries today. In the India most consumers want to avoid the haggle and
will simply accept the price on the tag. It is the successful retailer that has learned how to play
the game of give and take with their suppliers. Vendor negotiation preparation also includes
setting goals to determine what you want and what you can live with.

11.1 Wholesale Purchasing on the Internet

Wholesale purchasing deals with the purchasing of inventory to resell at a profit margin to
retail establishments or businesses. Wholesale purchasers purchase goods or commodities directly
from manufacturers or suppliers and then, in turn, sell to those who would sell to the general
public. Wholesale purchasing generally entails the purchase of large amounts of products to be
resold to one or more retailers. Having a successful retail business depends greatly on offering
the right product, at the right price, at the right time. Therefore, it is paramount to the success of
your business to be able to locate the best sources for those products. Once you know what
products or product lines you would like to sell, it’s time to find places to buy wholesale
merchandise.

Wholesale purchasing involves several distinct business models. Traditionally, wholesale buyers
purchased an inventory of a good or commodity for resale and acted as middlemen between the
manufacturer and the retailer. In today’s economy, however, the line is often blurred between
warehouse stores and online suppliers.

Did u know? Wholesale buyers can also purchase and resell items directly on online auction
sites.
Internet consumers continue to be a well expanding movement, thanks to the early and
continuously increasing adoption of Web tools and improving of Internet technology. This
concept, used since the origin, by the online e-commerce stores, mainly for retail-detail selling.
Notwithstanding, the advantages of using the Internet also for the Online Wholesale (OW)
purchasing, are quickly clear to any entrepreneur whom pay the right attention to reduce costs
and increase marginality of the own commercial activity. There are several positive reasons to
consider for making the choice of using the Online Wholesale stores for improving the standard
purchasing procedure:

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