Definition
Wholesale and wholesaling refer to all transactions in which the purchaser is actuated by a profit or business motive in making the purchase, except for transactions that involve a small quantity of goods purchased from a retail establishment for business use, which is considered a retail purchase.
A wholesaler is a merchant establishment operated by a concern that is primarily engaged in wholesale – buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities) to retailers or to industrial or business users.
A general-line wholesaler is one who carries a complete stock of one type of merchandise, corresponding roughly to a substantial majority of the total merchandise requirements of customers in a major line of trade or industry classification.
A general merchandise wholesaler carries a variety of goods for retailers in several distinct and unrelated merchandise lines.
A wagon distributor is a wholesaler whose inventory of merchandise is carried on trucks that are operated by driver salespeople. The retailer’s requirements for merchandise are determined at the time of the sales call and orders are filled immediately from the stock carried on the truck. Note: This is a somewhat archaic term.
A wholesale club—also known as a warehouse club/store or closed-door discount house—is a general merchandise wholesaler and/or retailer that offers a limited merchandise assortment with little service at low prices and sells only to club member ultimate consumers and member trade people.
See Also
References
- American Marketing Association, AMA Dictionary.