Introduction

At the present stage of economic development, in the conditions of already relatively established economic relations and a competitive environment, the issue of organizing wholesale and retail trade as a method of distributing goods and searching for all kinds of options for its implementation, as well as developing new technologies, becomes more relevant. Therefore, the study of the essence and forms of wholesale and retail trade is important, both for the enterprise itself and for potential consumers. wholesale retail marketing

At the present stage of economic development, in the conditions of already relatively established economic relations and a competitive environment, not only the general improvement of existing technologies for organizing retail and wholesale trade, but also the introduction of new methods for promoting goods for the economy becomes relevant.

The distribution of information, orders, goods and payments requires cooperation between manufacturers, wholesalers and retailers. These three participants can be seen as a channel system (or distribution system), i.e., as a group of independent companies, consisting of manufacturers, wholesalers and retailers, designed to bring the right set of goods to consumers at the right place and at the right time.

Characteristic features of wholesale and retail trade

Among the participants in the distribution channels, an important place is occupied by retail and wholesale trade. Wholesaling includes any activity of selling goods or services to those who purchase them for the purpose of resale or professional use. Wholesale trade - trade in large quantities of goods, sale to wholesale buyers who consume goods in significant quantities or then sell them at retail. Wholesale traders differ from retailers in a number of characteristics. First, the wholesaler pays less attention to the stimulation, atmosphere, and location of his outlet because he deals primarily with professional clients rather than end-users. The main consumers for wholesalers are industrial, commercial and government organizations, followed immediately by the retail trade. Mutual selling among the wholesale trade is an important area of ​​its activity. Secondly, in terms of volume, wholesale transactions are usually larger than retail ones, and the wholesaler's trading area is usually larger than that of a retailer. Third, with regard to legal regulations and taxes, the government approaches wholesalers and retailers from different perspectives. The wholesaler performs a number of functions that the manufacturer cannot perform itself, either due to a lack of qualified personnel, or because of the high costs of organizing their implementation:

• 1. Sales and promotion. Wholesalers have sales staff, help the manufacturer to reach many small customers at low cost. The wholesaler has more business contacts and often the buyer has more confidence.
• 2. Purchases and the formation of a product range. The wholesaler is able to select products and form the necessary product range, thus relieving the client of significant troubles.
• 3. Breakdown of large consignments of goods into small consignments of goods. In this way, wholesalers provide customers with cost savings.
• 4. Warehousing. Wholesalers keep inventories, thus helping to reduce the corresponding costs of the supplier and consumers.
• 5. Transportation. Wholesalers provide faster delivery of goods because they are closer to customers than manufacturers.
• 6. Financing. Wholesalers finance their customers by providing them with credit, and at the same time finance their suppliers by issuing orders in advance and paying bills on time.
• 7. Acceptance of risk. By assuming ownership of the goods and bearing the costs of theft, damage, deterioration and obsolescence, wholesalers bear some of the risk.
• 8. Providing information about the market. Wholesalers provide their suppliers and customers with information about competitors' activities, new products, price developments, etc.
• 9. Management and consulting services. It is not uncommon for a wholesaler to help retailers improve their operations by training their salespeople, taking part in store layout and display design, and organizing accounting and inventory management systems.

The wholesaler has qualified sales personnel, can form the necessary product range, organize the storage of goods, ensure their prompt delivery, pay bills on time, organize the collection of information about the competitor, price dynamics. Wholesale trade enterprises are mainly located in rural areas, which helps to reduce costs.

The choice of the form of wholesale depends on the specific product, its position on the market: in demand; demand is not great, the degree of market saturation, as well as from the specific transaction of the wholesale company with the seller of goods.

There are two main forms of wholesale trade: transit and warehouse. In the first form, goods are delivered from the manufacturer to a retail chain or another wholesale company (smaller or located in another city), bypassing the warehouse of an intermediary wholesaler. This form has the advantage that turnover is accelerated, logistics costs are reduced, and the safety of goods is increased. Transit delivery is used if intermediate preparation of goods for quality, packaging, sorting, etc. is not required. In this case, the intermediary wholesaler does not have the opportunity to form an assortment, except for what the manufacturer shipped.

In the warehouse form, a batch of goods from the manufacturer enters the warehouse of the wholesale company, and then is distributed through various distribution channels to retail. Despite the increased logistics costs, in this case, the needs of trade in pre-sales preparation are better met. The rhythm of supplying shops is also improving, including in small batches, which is convenient for them. It opens up the possibility of forming the product range required for each store.

There are three main categories of wholesale activities: wholesale activities of manufacturers, commercial (trading) wholesale activities, activities of agents and brokers.

• 1. In the wholesale activities of manufacturers, they themselves perform all wholesale functions. Wholesale activity of manufacturers is most likely when there are no intermediaries, the number of consumers is small, the purchase of products is an important event for consumers, orders are very large, consumers are geographically concentrated.
• 2. Commercial wholesale organizations (CMOs) buy, receive ownership for subsequent resale. CCMs may provide full services or limited services.
• 3. Agents and brokers perform various wholesale functions but do not take ownership of the goods. Agents and brokers work for commissions or payments for their services. The organization of trade with their use has the following advantages: allows the manufacturer or supplier to increase sales; sales costs are predetermined (commissions are set as a percentage of sales); trade is carried out by professionals.

The development of wholesale trade is financed mainly from non-state sources. Bodies of executive power and local self-government should help attract investments, as well as free funds of the population. Main sources of income: fees for the use of premises provided to wholesalers, fees paid by wholesalers and wholesalers for services provided to wholesale markets. Wholesale trade is not only a way to sell products, but also an important form of market organization. It forms the pricing, and it is the base.

Without wholesalers, consumer organizations would have to deal with a range of manufacturers and coordinate deliveries, develop relationships with suppliers, perform more merchandising functions, store larger volumes of goods, and pay more attention to internal procurement departments. Retail trade closes the chain of movement of goods from the producer to the consumer.

Retail trade is any activity selling goods or services directly to end consumers for their personal non-commercial use, which performs a number of important functions: participates in the process of assortment formation, the width and depth of the assortment depend on the strategy of a particular retailer; provides information to consumers (through sellers, advertising, etc.), assists other participants in distribution channels in marketing research; performs an operation with goods (storage, sorting, price setting, etc.), makes purchase and sale transactions (credit, delivery).

Retailing can be done through stores, vending machines, direct home sales, direct sales, as well as through catering and service establishments. There are retailers:

• - Stationary (shops, etc.)
• - Small retail (kiosks, tents, etc.)
• - Mobile (portable, exit trade from cars, carts, trays).

Retail trade is classified by property, forms and methods of trade. By ownership, a distinction is made between an independent retailer, joint ownership of several retail outlets, contractual agreements between manufacturers and merchants, leased departments, cooperatives. In terms of forms, these are department stores and department stores, supermarkets, specialized and duty stores, discount stores, shopping bazaars, street peddlers, sales from stalls. Trading methods are extremely diverse and are determined by many factors, including the structure of the trading enterprise, as well as the marketing program. Each type of retailer has its own scope and clearly articulated plan to reach customers in the most effective way.

Retail is characterized by a gigantic volume of transactions, a large number of customers, a wide product line and, most often, distributed storage. A high level of competition forces companies to improve the quality of service, reduce costs, increase customer loyalty, and quickly respond to competitors' actions. The basis for the successful operation of a retail enterprise is its location in the path of human traffic. Retailers tend to locate their outlets closer to population centers. The number of consumers and their average purchasing power will determine the size of the store, and hence the amount of investment. One of the most interesting aspects of retail development is the emergence of "hypermarkets". This type of trade provides significant savings, but the disadvantage is dependence on the part of the population that owns cars. In retail, you need to understand that the customer has needs, and the only way a salesperson can be successful is to satisfy them. The retailer must set the prices of goods and services in such a way as to make a profit and satisfy the needs of customers, while adjusting to various restrictions.

Important among all is the issue of the arrangement and design of the store, methods of contact with customers (methods of sale), types of services provided, professional level of personnel, the solution of which will bring great profit to the retailer.

Thus, retail and wholesale trade occupy an important place in the system of distribution channels, each performs certain functions, has its own forms, includes both independent categories of activity and those dependent on the manufacturer. Wholesalers and retailers differ from each other in a number of ways, but the most important is that wholesalers are intermediaries who purchase goods with the intent to resell, while retailers sell goods directly to end consumers for their personal non-commercial use.

From the point of view of marketing, the role of wholesale trade is to meet the needs of retail enterprises to the maximum, supplying them with the necessary goods in certain volumes and on time. Usually located in large settlements (cities), wholesale companies are also well aware of the needs of end customers and therefore, on their own or with the help of a product manufacturer, they are able to organize powerful marketing support for retail trade.

There are two main types of trade: retail and wholesale. What is each of them, what features does it have, and for what purposes is it most suitable?

First of all, the key difference is in the volumes and types of sales. We sell wholesale, as a rule, large consignments of goods or services that are necessary for the buyer to conduct business. Retail, in turn, is already in the sale to end consumers, individuals. It can also be not only single, but also large - it all depends on their needs and desires.

Principles of wholesale trade

Wholesale: what is this form of trade and what features does it have? In it, each buyer goes through the identification procedure, that is, a contract is concluded with each of them. Wholesale buyers are, as a rule, individual entrepreneurs or legal entities. They carry out trade to conduct their own business, and each has its own specific goals. This can be both the production and consumption of goods, or their subsequent resale. Most often, goods purchased in bulk are used specifically for resale.

That is, in wholesale trade, the main transactions take place between entrepreneurs and organizations. are sold not for the needs of the end user, but for business purposes. The main feature of wholesale trade is the mandatory identification of the buyer.

Scheme and examples

It is easier to understand what wholesale is, you can use specific examples. The main wholesalers are the manufacturers themselves, it is they who stand at the origins of the financial "chain". They both directly create their products and sell them on the market. This product can be very different: clothes, shoes, household appliances, cosmetics, souvenirs, food, etc.

In most cases, manufacturers resell products to other wholesalers, that is, dealers, and those to other resellers. Before the product gets to the final buyer, it goes through many stages of resale. How much depends on the product itself and on the financial state of the market at the moment. At the other end of the chain is a retailer - it is he who sells products to the average consumer.

The benefits of wholesale

Despite the impressive volumes, wholesale trading from a warehouse is much easier than retail. There is no need for time-consuming advertising or other marketing costs that can keep the buyer. Sales volumes can be stable, or the product can be sold individually - it all depends on the goals of the seller. In any case, with proper quality and good demand, shipment and purchase of large consignments of goods will be carried out constantly.

Another difference is in the way taxes are paid. Wholesale trade enterprises can be subject to both general and simplified taxation systems (OSN or STS, respectively). But in general, the principles of taxation for wholesalers are much simpler than for retailers.

The "nightmare" of any retailer is a customer who is dissatisfied with the quality of the product or the service provided. The situation can be very unpleasant, up to tantrums and trials in court. Wholesale buyers do not behave this way, because they have a contract in their hands, and in it there are clearly defined conditions and rules for the behavior of the parties in the event of a conflict.

Retail sales

Speaking about what wholesale and retail are, one main difference can be noted: if in wholesale a product can go through several stages of resale, then in retail such a situation is excluded. The goods are intended not for further resale, but for direct use by the consumer.

Buyers themselves create demand for a particular product and dictate the needs of the market. Retailers are the category that has the best opportunity to study and analyze this demand and build their activities in accordance with it.

Where and how are goods sold at retail?

There are a lot of options here. The sale of goods and the provision of services can be carried out both in the store and on the street, as well as at the buyer's home. Methods are also different: by mail, via the Internet, in personal sales or by phone.

The seller in the retail sales system is in direct contact with the buyer. That is, he has to take into account the tastes of each consumer, to please him and in every possible way to facilitate the purchase. And in case of conflict situations - to cope with complaints.

The retailer has a lot of risks too. For example, having to have poorly selling products on the counter - thus, the buyers get the impression of a wide range and potential choice. On the other hand, there is a risk of damage to goods that were not sold on time. In addition, you have to make financial concessions: for example, to sell a product at a low price, often at cost, so that the buyer buys other products.

However, all this has a downside - after all, the margin for retail goods is much higher than for wholesale. This means that the profit from such sales will be much greater.

Requirements and features of sales

It is not enough to understand what wholesale is and what retail is - you need to analyze all the key features of these types of sales and understand what problems you may encounter in the process of this activity.

Differences

What are the differences between wholesale and retail?

1. Various assortment. The retailer works with a small assortment of a particular supplier, the wholesaler - with a wide range, from different suppliers. The average wholesaler has from 5000 positions in the assortment matrix. What is a small wholesale? This is when there are from 100 to 1000 items in the assortment, depending on the specifics of the product itself.
2. Various volumes. Wholesalers have to work only with large volumes and wholesale prices. In addition to tangible profits, this entails more serious financial investments at the initial stage, as well as bigger problems in case of failure.
3. different logistics. This area is the most "problematic" for the wholesaler, because he has to face many difficulties for each type of product: storage, availability, customs clearance, personnel. When it comes to seasonal goods, things get even more complicated.
4. Various turnover. If we are talking about gigantic volumes, but at the same time low turnover, the wholesaler must have a huge warehouse to store his goods. In general, everything is simple here: the faster the turnover of goods, the higher and more stable the profit. Any delays here are fraught with a loss - for example, due to the cost of storage, accounting, wages for warehouse staff, etc.
5. Various planning criteria. In the field of wholesale purchases, the seller deals not only with large profits and serious commodity flows, but also with a large financial leverage. It is important to calculate, with the maximum guarantee, the volume of future sales, to be sure that the product will be sold at a certain time, and also to have a guaranteed profit for the purchase of a new product.

Problems in retail and wholesale trade

Nothing is perfect, both retailers and wholesalers face challenges. However, wholesalers have to bear more serious losses. With what it can be connected?

• There is no trust of creditors, and therefore no opportunity to get leverage. There may be problems with payment for the previous batch of goods or the purchase of the next one.
• Illiterate planning, resulting in the accumulation of excess goods lying in the warehouse as "dead weight".
• Unstable work with retailers. This can be a sudden increase in the volume of their work, as well as the termination of activities or the decision to completely change the range. In any case, it is not pleasant enough - after all, the wholesaler has planned certain volumes and will suffer serious losses if they are not sold.
• Supply interruptions. It happens that the goods purchased at the wholesale price are not ready in full. Or there were problems with its shipment at customs. Or at the stage of transportation there was a force majeure. The consequences of all these troubles affect a wide range of customers. In retail, such situations also happen, but they are not so large-scale.
• Human factor. We are all human and everyone can make mistakes. For example, by ordering the wrong item from the catalog or by doing Worse, when the customer is being treated incorrectly, as a result of which he leaves for a competitor. All this must be strictly monitored in order to avoid serious problems with the budget.

Summing up

What is wholesale and what is retail, figured out. What problems can be encountered in each type of activity is also clear. As well as the obvious advantages of each of the types of sales. On the other hand, where the fine line between wholesale and retail lies, the criterion is purely individual. For purchases in bulk, the minimum amount can be determined in each individual case by the seller - be it ten or a thousand items.

In general, it can be said that trading in bulk is easier, since the terms of trade are regulated by the contract. But on the retail markup, you can earn more.

There are two types of trade: wholesale and retail. The type of trade carried out by the enterprise depends on the organization of warehouse and accounting, including the procedure for posting goods, determining selling (selling) prices, registering the release of goods to the side, etc.
To define the concepts of wholesale and retail trade, let's turn to GOST R 51303-99.
Wholesale trade is the trade in goods with their subsequent resale or professional use. A wholesale trade enterprise carries out the purchase and sale of goods for the purpose of their subsequent resale, and also provides services for organizing the wholesale turnover of goods.
Retail trade is the sale of goods and the provision of services to customers for personal, family, home use, not related to business activities.
A retail trade enterprise carries out the purchase and sale of goods, the performance of work and the provision of services to customers for their personal, family, home use. Retail trade enterprises use shops, pavilions, kiosks and tents to conduct business.
Retailers according to the range of goods sold are classified by type: universal, specialized
nye shops, shops with a combined, as well as a mixed assortment of goods.
The type of retail trade enterprise is determined by the trading area and forms of trade customer service. The types of retail outlets are: department store, supermarket, fabric store, grocery store, etc.
Depending on the characteristics of the trade customer service, the availability of retail space, equipment, the following types of retail trade are distinguished: trade through a stationary trade network; trade through a mobile (delivery and peddling) trading network; trade in the forwarding of ordered goods.
A summary classification of retail outlets is presented in the following table:

Retail trade is carried out in various forms, among which are the following: sale of goods with customer service at the trading facility (at the point of sale of goods); sale of goods by samples; sale of goods on orders and at home with buyers; sale of durable goods on credit.
Selling goods with customer service at the point of sale
goods, as well as for orders and at home, is regulated by the "Rules for the sale of certain types of goods", approved by Decree of the Government of the Russian Federation of January 19, 1998 No. 55 (hereinafter referred to as the Rules), and the rules for the operation of retail trade organizations on the territory of the subjects

Russian Federation adopted by the executive bodies of these subjects.
The trade in alcoholic products is regulated by the Federal Law “On State Regulation of the Production and Turnover of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products” dated November 22, 1995 No. 171-FZ and the above Rules.
Similarly, the sale of civilian and service (if their buyers are citizens with the right to service weapons) cold steel and firearms, their main parts (barrel, bolt, drum, frame, receiver), as well as cartridges for it, is carried out in accordance with the Federal Law dated December 13, 1996 No. 150-FZ "On weapons" and the Rules.
When selling goods in commission stores, one should be guided by the "Rules for commission trade in non-food products", approved by Decree of the Government of the Russian Federation of 06.06.1998 No. 569.
The sale of goods by samples is regulated by Article 497 of the Civil Code of the Russian Federation, Article 26.1 of the Law of the Russian Federation of February 7, 1992 No. 2300-1 “On Protection of Consumer Rights” and the “Rules for the Sale of Goods by Samples”, approved by Decree of the Government of the Russian Federation of July 21, 1997 No. 918.
Approximate rules for trading in the wholesale food market were approved by a joint order dated 01.12.1994 of the Ministry of Agriculture and Food of the Russian Federation No. 292 and Roskomtorg No. 95. Trading network
A trade network is a set of trade enterprises located within a specific territory or under common management.
A trading enterprise is a property complex used by an organization for the sale and purchase of goods and the provision of trade services.
The wholesale (trading) network is represented by wholesale trade enterprises.
The retail (trading) network is represented by retail trade enterprises.

More on wholesale and retail trade:

1. Agafonova Marina Nikolaevna Accounting in wholesale and retail trade and document flow, 2009
2. ORGANIZATIONAL FORMS OF WHOLESALE TRADE 1.8.1. Essence and tasks of wholesale trade
3. Terms, organization and procedure for conducting an inventory in wholesale and retail trade organizations, its documentation, the procedure for reflecting the results of the inventory in accounting.

There are 2 main types of trade - wholesale and retail. What is the specificity of each of them?

What is the specificity of wholesale trade?

In the legislation of the Russian Federation wholesale is defined as a type of commercial activity that involves the purchase and sale of goods for the purpose of their use in business (for example, for resale) - that is, not for personal consumption. Wholesale trade is most often carried out at the conclusion of supply contracts. Under the relevant contracts, suppliers transfer the goods produced by them or purchased from partners to their buyer within the established time limits for subsequent use in business. Thus, wholesale trade can also be called the main subject of the relevant contracts.

The buyer of goods within the framework of the wholesale is most often an individual entrepreneur (for example, a store owner) or a legal entity. But it happens that individuals also take part in the relevant contracts. True, the subsequent resale of goods for them may not be very profitable in terms of taxation. Therefore, in order to participate in wholesale transactions, citizens, as a rule, are registered as individual entrepreneurs or founders of business companies.

Strictly speaking, an individual entrepreneur is also an individual, but registered with state bodies in the prescribed manner as a business entity. But when dealing with goods (for example, if we are talking about the resale of goods purchased in bulk), an entrepreneur is most often entitled to use the taxation regime with a lower payment burden than an individual who is not registered as an individual entrepreneur.

As a rule, wholesale deliveries involve the sale of goods in significant volumes. At the same time, the cost of 1 unit of production within a large batch is usually significantly lower than if the goods were purchased in smaller batches or separately. As a result, the buyer of wholesale goods can profitably resell the purchased products.

What is the nature of retail?

The legislation of the Russian Federation defines retail as a commercial activity in which the supplier of the goods sells it to the buyer for further use of this product for the personal purposes of the person who bought the product - that is, not related to entrepreneurial activity.

The buyer of goods at retail is most often an individual. Sometimes - an individual entrepreneur, who, from a legal point of view, as we noted above, also acts as an individual. An organization can also be a participant in retail transactions if its owner, in accordance with the procedure established by law, intends to use the purchased goods not for business, but for personal purposes.

As a rule, single products are sold at retail or delivered in relatively small batches.

Comparison

The main difference between wholesale and retail is how the goods purchased from the supplier are used by the buyer. Wholesale assumes their further involvement in the business (for example, the implementation of their subsequent resale). At retail, the purchased goods are used personally by its purchaser, members of his family and other persons to whom he can transfer the goods.

As a rule, the parties to transactions within the framework of wholesale trade are legal entities and individual entrepreneurs, quite rarely - individuals. In retail trade, individuals, in turn, take a much more visible part.

Wholesale transactions often involve the supply of large quantities of goods. Retail, on the contrary, are characterized by relatively small volumes of purchases.

Having determined the difference between wholesale and retail trade, we will reflect the conclusions in the table.

Table

Wholesale	Retail
Involves the sale of goods that are further used by the buyer in business activities (for example, for resale purposes)	It involves the sale of goods that are later used by the purchaser for personal purposes.
As a rule, legal entities and individual entrepreneurs become parties to wholesale transactions, individuals - very rarely	Individuals regularly participate in retail transactions (most often as buyers of goods)
Wholesale contracts often involve the supply of large quantities of goods, which can, for example, be profitably sold individually in the future.	Retail transactions usually involve the sale of single items or presented in relatively small quantities.

9.4 Retail and wholesale trade

Retail - any activity for the sale of goods or services directly to final consumers for their personal non-commercial use.

Types of retail trade enterprises . Self-service retail outlets provide customers with the opportunity to independently select goods, they are the basis for organizing trade at low prices. Retailers with free selection of goods have vendors to contact for assistance. The client completes the transaction by approaching the seller and paying for the purchase. The costs in this case are slightly higher than with self-service. Retail trade enterprises limited service provide the buyer with a higher level of assistance from the sales staff. In such stores, customers are provided with more information, they offer services in the form of selling on credit. Full Service Retailers- These are fashionable department stores, their sellers help the buyer in the process of searching, comparing and choosing goods. Wealthy consumers prefer these stores because of well-trained staff, a wide range of specialty and fashion products, a variety of credit schemes, delivery of purchases, etc.

The proposed product range can serve to classify retail outlets. Specialty stores offer a wide range of products. Examples include clothing, sporting goods, furniture, flower and book stores. department stores offer several assortment groups of goods - usually clothes, household items, household goods. Each assortment group is handled by a special department of the department store. supermarkets- These are large self-service enterprises with low costs and margins, a large volume of sales. They are designed to fully meet the needs of the consumer in food, and sometimes laundry, detergents and home care products. Packaging technology makes it possible to offer the consumer products in containers and packaging convenient for storage. The use of electronics and computers provides automation of accounting and control. Service Retailers- these are hotels, banks and airlines; colleges, hospitals, cinemas and restaurants; repair services and establishments for the provision of personal services (hairdressers, beauty salons, etc.). The number of service retailers is growing faster than the number of goods retailers.

Prices. The classification of trade enterprises can be carried out on the basis of the price level. Low prices are typical for the following stores. Discount Stores trade at low prices due to small margins with a large volume of sales. The use of discount prices, the sale of low-quality goods are not typical for a discount store. Such a store sells quality goods at low prices with a high inventory turnover. The inventory turnover in it reaches up to 15 times a year, and not 5-7 times, as in department stores. warehouse store is a limited-service trading enterprise whose purpose is to sell a large volume of goods at low prices. Traditional furniture stores have long used the practice of selling directly from the warehouse. Shops - showrooms they sell jewelry, computers, power tools, household appliances and other goods according to price lists and catalogs. The visitor in the demo department makes his choice and issues the order to the seller.

The nature of the retail space . Although most goods and services are still sold in stores, the growth rate of non-store retail is very high. Some forms of non-store retail can be listed. Retail trade with the order of goods by mail, by phone or via the Internet- this is a marketing activity using mail and telephone lines, a global computer network for collecting orders, facilitating the delivery of goods, making payments. At trade with catalog order sellers usually send catalogs to a certain circle of customers or provide an opportunity to receive them in their sales premises free of charge or at a low price. Direct Marketing involves advertisements in a newspaper, radio, or television describing a product that consumers can order by mail or telephone. This is how they sell books, household appliances, etc.

Through vending machines sell a wide variety of goods: cigarettes, soft drinks, sweets, newspapers, hot drinks. Vending machines provide the possibility of round-the-clock sales and self-service. Discount Order Service assists a marginalized group of clients - usually workers and employees of large organizations such as government agencies - who purchase at discounted prices from a selection of selected retailers. Peddle trade originates many centuries ago. At present, many enterprises and entrepreneurs are engaged in peddling on the principle of "every door".

Store affiliation . Retail establishments can be classified according to their ownership. Most of the stores are independent private enterprises. There are also other forms of ownership. Corporate network are two or more trading establishments owned or under common control. They sell goods of a similar range, have a common purchasing and marketing service. The success of enterprise networks is based on cost advantages through increased sales and reduced markups. The size of corporate networks allows you to purchase large quantities of goods, receiving maximum discounts. They are able to create effective structures, hire qualified managers and apply special techniques for sales forecasting, inventory management, pricing and sales promotion, and combine the functions of wholesale and retail trade.

A kind of store concentration . This is the last principle of classification of retail establishments. There are four main types of concentration forms: 1) central business district. Every major city has a central business district where department stores, specialty stores, banks, and movie theaters are located. Smaller business districts are located closer to the outskirts; 2) regional shopping centers- a group of trade enterprises corresponding in their location, size and type of stores to the trade zone they serve. Large shopping areas may house several department stores; 3) district shopping centers may include dozens of stores serving up to 100 thousand people who live in the area; four) neighborhood shopping malls, serving 5-20 thousand inhabitants. These are centers for the sale of consumer goods.

Wholesale is any activity of selling goods or services to those who purchase them for the purpose of resale or professional use. Wholesalers are divided into the following groups: a) merchant wholesalers; b) brokers and agents; c) wholesale departments and manufacturers' offices.

Functions of wholesalers. Wholesalers are used when they can more effectively perform the following functions: 1) sales and promotion- wholesalers help the manufacturer reach many small customers at a relatively low cost; 2) purchases and the formation of a product range- the wholesaler is able to pick up products, form the product range necessary for the client; 3) breaking large quantities of goods into smaller ones- wholesalers provide savings by purchasing goods in wagons and dividing them into small lots; four) warehousing- wholesalers keep inventories, thereby helping to reduce the corresponding costs of the supplier and consumers; 5) transportation- wholesalers provide faster delivery of goods, as they are closer to customers than manufacturers; 6) financing- wholesalers finance their customers by providing them with a trade credit; 7) risk taking- taking ownership of the goods, incurring costs in connection with its theft, damage, deterioration and obsolescence, wholesalers take on part of the risk; eight) providing market information- wholesalers provide their suppliers and customers with information about the activities of competitors, new products, price dynamics; 9) management and consulting services- The wholesaler often helps retailers by teaching their salespeople, participating in the organization of work, helping to organize accounting, inventory management.

Merchant wholesalers. These are independent commercial enterprises that acquire ownership of all the goods they deal with. In different fields of activity they are called differently: wholesalers, bases, distributors, trading houses. This is a large group of wholesalers, accounting for more than half of wholesale trade. Wholesalers-merchants are of two types - with a full and limited service cycle. Full service wholesalers provide services such as inventory storage, provision of salespeople, credit, delivery of goods, and management assistance. They are either wholesalers or distributors. Wholesale trade is mainly with retailers, providing them with a full range of services. Industrial goods distributors sell primarily to manufacturers rather than retailers. They offer customers services such as inventory storage, credit, and delivery of goods.

Limited service wholesalers provide far fewer services to their suppliers and customers. There are several types of wholesalers with a limited range of services: a) cash-on-delivery wholesaler, - deals with a limited range of hot goods, which he sells to small retailers with immediate payment for the purchase without exporting the purchased; b) wholesaler-traveler not only sells, but also delivers the goods to customers; in) wholesaler-organizer - works in industries that are characterized by bulk transportation of goods (such as raw materials, heavy equipment), while he does not deal with the goods directly, but, having received an order, finds a manufacturer who ships the goods to the buyer; d) about wholesaler-exporter- Serves retail stores by sending their goods to the store, equips displays on the trading floor, sets prices, maintains inventory records and issues invoices to retailers for what is purchased; e) wholesaler-messenger - sends catalogs to customers (retailers, industrial manufacturers and various institutions), orders are sent by mail or delivered by road.

Brokers and agents . They differ from merchant wholesalers in two respects: they do not take ownership of the goods and they perform limited functions. Their main function is to facilitate the sale and purchase. For their services, they receive a commission of up to 5-10% of the selling price of the goods. Like merchant wholesalers, they specialize either in the type of product range they offer or in the type of customers they serve. The broker brings buyers and sellers together and helps them negotiate. The broker is paid by the one who engages him in mediation.

The agent represents the buyer or seller on a longer term basis. There are several types of agents. Manufacturers' agents represent two or more producers of complementary goods. They enter into formal agreements with each manufacturer regarding prices, territorial boundaries of activity, order processing, goods delivery services and commission rates. Authorized Sales Agents enter into contracts with manufacturers, obtaining the rights to sell products manufactured by one or another manufacturer. The Authorized Distributor acts as the manufacturer's sales department and has a significant influence on prices, terms and conditions of sale. Purchasing Agents usually form long-term relationships with their customers and purchase the necessary goods for them, often receiving these goods, checking their quality, organizing warehousing and subsequent delivery to the destination. Wholesalers-commission agents- these are agent firms that enter into physical possession of goods and independently conclude transactions for their sale. As a rule, they do not work on the basis of long-term agreements. The commission wholesaler delivers the goods to a certain market, sells the entire batch at the most favorable price, deducts his commissions and costs from the proceeds, and transfers the remaining amount to the manufacturer.

Wholesale offices and manufacturers' offices . These enterprises carry out wholesale trade without the involvement of independent wholesalers. There are two types of enterprises engaged in such activities: 1) sales departments and manufacturers' offices - keep inventory management, sales and promotion activities under tighter control. Large retailers often maintain their own buying offices in major market centers. The purchasing office plays roughly the same role as brokers or agents, but is a structural subdivision of the purchasing organization; 2) specialized wholesalers - a number of sectors of the economy have their own specialized wholesale organizations (for example, wholesale tank farms sell and deliver petroleum products to gas stations and business enterprises).

Wholesaler Marketing Solutions . Wholesalers must make a number of marketing decisions.

Target market decision . Wholesalers need to define their target market. A wholesaler can select a target group of customers based on size, type, severity of interest in services and other criteria. Within the target group, the wholesaler can identify the most profitable customers and establish closer relationships with them.

Decision on the product range and range of services . A wholesaler's "product" is the assortment he offers. Wholesalers are under pressure from the market to offer a full range of products and maintain stocks of goods for immediate delivery. But it comes at a cost. Wholesalers determine the number of assortment groups of goods, select only the most profitable product groups for themselves, decide which services help to achieve the closest relationship with customers.

Pricing decisionsshould be determined on the basis of marketing approaches, given that in a competitive environment, the net profit of wholesale trade may not reach even 2%.

Decision on incentive methods includes the choice of a combination of the main elements of the stimulation complex. Many wholesalers don't think much about promotion yet, so the use of advertising, sales promotion, propaganda, and personal selling techniques is often haphazard.

Decision on the location of the enterprise . Wholesalers usually locate their businesses in areas with low rents and low taxation, spend a minimum of

funds for the improvement of the territory and equipment of the premises. To combat rising costs, they are developing new methods and techniques of activity. One of these developments was the creation of automated warehouses controlled by computers.

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