Wholesale Trade Basics

What are the different types of wholesalers?

• Suppliers

• Distributors

• There are four main types of wholesalers: 1. Merchant Wholesalers 2. Brokers 3. Agents 4. Manufacturers' Sales Branches and Offices

• Retailers

Explain the concept of wholesale distribution channels.

• Wholesale distribution channels only benefit manufacturers and do not impact retailers.

• Wholesale distribution channels involve direct sales from manufacturers to consumers, bypassing intermediaries.

• Wholesale distribution channels involve intermediaries that help manufacturers sell products in bulk to retailers, expanding market reach and reducing distribution costs.

• Wholesale distribution channels are limited to online platforms and do not involve physical stores.

What services do wholesalers provide to manufacturers?

• Quality control, product design, pricing strategy

• Retail display, online advertising, competitor analysis

• Individual sales, transportation, customer service

• Bulk purchasing, warehousing, distribution, and marketing support

How do wholesalers support retailers?

• By limiting product variety and increasing prices

• By providing a wide range of products at lower prices, offering bulk purchasing options, delivering goods efficiently, providing marketing support, and offering credit terms.

• By delaying deliveries and providing poor customer service

• By offering limited credit options and no marketing support

What does OHIO stand for in the context of wholesale trade?

• Open-High-In-Low-Close

• Outsource-Hire-Invest-Operate

• Open-High-Low-Close

• Overhead-Inventory-Order

Name one type of wholesaler that deals with a specific product category.

• General wholesaler

• Bulk wholesaler

• Retailer

• Specialty wholesaler

Describe the role of cash and carry wholesalers.

• Cash and carry wholesalers provide home delivery services for customers.

• Cash and carry wholesalers sell goods in bulk for cash, offering discounted prices and requiring customers to transport the goods themselves.

• Cash and carry wholesalers only accept credit card payments.

• Cash and carry wholesalers have a minimum purchase requirement of one item.

How do drop shippers operate in the wholesale trade?

• Drop shippers only sell products in physical stores.

• Drop shippers do not interact with suppliers.

• Drop shippers manufacture the products themselves.

• Drop shippers act as intermediaries between manufacturers or suppliers and customers, forwarding orders to the supplier who ships the products directly to the customer.

What are the advantages of using wholesale trade shows for manufacturers?

• Manufacturers can only sell limited quantities at wholesale trade shows

• Manufacturers can showcase products, network, gather market insights, receive feedback, and secure bulk orders.

• Wholesale trade shows are not effective for marketing products

• Manufacturers cannot connect with potential buyers at wholesale trade shows

Explain the concept of wholesale price discounts.

• Wholesale price discounts are price reductions offered to buyers who purchase goods in large quantities.

• Wholesale price discounts are applicable only to online purchases.

• Wholesale price discounts are fixed and cannot be negotiated.

• Wholesale price discounts are only available for small orders.