Stocklot and wholesale

Tradeguide24 - Stocklot and wholesale

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Wholesale & Wholesalers

In comparison wholesale is aimed at resellers. Wholesale takes place when wholesalers sell goods, which they do not normally process or handle themselves, such as merchandise, from producers or other suppliers to resellers, processors, professional users, authorities, educational establishments or other institutions, canteens, clubs, as long as it does not involve private households. Institutionally, wholesale, also described as wholesale companies, wholesale outlets or wholesale operations, include those institutions whose business activities can be solely or predominantly included as wholesale. In official statistics a business or company is classified as being wholesale if a greater net product results from wholesale activities than a second or various activities. Wholesale is seen as a link between the various stages of distribution. Buyers of wholesale are businesses of the retail trade, trade customers, the catering industry, regional wholesalers, industrial or other commercial enterprises. Decisions about the selection of wholesale according to type and amount count towards distribution policy as part of the industrial marketing mix. Wholesalers also have a wide spectrum of independent retail marketing instruments at their disposal, so-called wholesale marketing. Professional wholesale marketing is absolutely vital due to the danger of being cut-off, meaning not enough suppliers and customers can be found. Contractual vertical and horizontal cooperation which arise from wholesale act against the danger of being cut-off, for example, authorised dealers, exclusive distribution, cooperative societies as a purchasing centre for retail traders or a central system of wholesale organised by the involvement of retail trade businesses in a retail cooperative, such as a voluntary chain or a purchasing syndicate.

Remaining stock

Remaining stocks are surplus goods which are also sold as special items. If you receive an offer of genuine remaining stock you should buy it up completely if possible, so that you can be sure you will be the only supplier of these goods for a short time at least.

Traders of remaining stock

Traders of remaining stocks are traders who specialise exclusively in remaining stock, special items and insolvency goods. Even allowing for their profits margins value good can still be bought from traders of remaining stock.

Bankruptcy goods

Bankruptcy goods should be bought directly from the appointed receiver. It is also advisable to buy the complete lot of bankruptcy goods otherwise you will not be the only supplier of these goods.

Insolvency goods

Failing companies often end up becoming insolvent. Insolvency goods are left after clearance sales and insolvency sales. The problem is that the insolvency goods are often mixed lots and can also contain returned goods.

Retail traders

Retail traders are, among other things, the mail order business, e-commerce, teleshopping, shops and itinerant trade on markets and door-to-door selling. Retail traders can also be found in galleries, shopping arcades, retail parks, and recently in so-called retail outlets.

Retail trade

Retail trade is a form of commercial enterprise which aims to sell the goods to the end customer or end user in small quantities. The total turnover of retail trade is around 400bn euros.

Resellers

A reseller is a seller who sells on the goods which he has bought previously. So resellers are positioned between the suppliers and the customers. The reseller can sell the items under his own brand name or create his own brand out of an existing one. The biggest margin for resellers is in the area of brand name clothing and fashion. There is a fluid transition from reseller to franchises or affiliates.

Manufacturing seconds (B-stock)

In contrast to A-stock and C-stock goods, items described as B-stock are goods which are excluded from usual sale and are offered at a special price or at outlet stores, even though they are new or as-new and are in fully working order and are subject to the usual guarantee. It can involve items no longer in original packaging, but which are new, items which have been unwrapped just once and shown to or viewed by a customer or returned from mail order companies. They also include items which have small defects, as-new demonstration models, sample items and display items as well as packaging damage, in which the original packaging was damaged or is missing. Otherwise these products may have no other optical damage, especially those which would cause them not to work. Items described as B-stock are often remaining stock, special items or surplus goods and swap stocks.

Seconds

We all know second hand goods/seconds from the supermarket, e.g. clothes. In the merchandise trade it describes goods and items with, for example, have small defects. Seconds are items which have been unwrapped just once and shown to or viewed by a customer or returned from mail order companies. They also include items which have small defects, as-new demonstration models, sample items and display items as well as packaging damage, in which the original packaging was damaged or is missing.

Special stock market & special stock traders

The special stock market is a form of retail trade which has a constantly changing range of low-priced articles. They are often called junk shops. Small special stock markets are frequently operated by retail traders and retail trade businesses in town or city centres. Meanwhile some special stock markets are operated as international trade chains which are supplied by huge central warehouses. Other types of retail trade, especially discounters, department stores, DIY superstores, chemists and textile chains have integrated permanent departments with special items for sale. However, these discounters only have a small range of so-called fast-moving items which are quickly sold in a few days.

Fast Moving Consumer Goods (FMCG)

FMCG’s are products which are sold quickly at relatively low cost. Though the total profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCGs generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. Fast Moving Consumer Goods (FMCG) may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorised separately. Fast Moving Consumer Goods (FMCG) products contrast with durable goods or major appliances such as kitchen appliances, which are generally replaced less than once a year. In Britain white goods as part of FMCGs refer to large household electronic items such as refrigerators. Smaller items such as TVs, internet equipment and stereo systems are sometimes termed brown goods.

Wholesaling

Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services In general, it is the sale of goods to anyone other than a standard consumer.

Wholesale businesses

Many intermediaries exist to assure product quality or to hold stocks until needed by retailers who often have limited storage and retail space; they also help smaller retailers avoid issues like customs bonding and the need to secure an import license. The distributor sells large quantities of clothing stocks to a reseller, who tries to charge sufficient mark-ups to cover his costs and still make a profit. Often the supply chain will include more than one intermediary, although retailers usually strive for the fewest middlemen and lowest prices. Since the emergence of the Internet, many retailers have begun using it for just this purpose, and many new online-only wholesalers have emerged as a result. Nowadays, many websites offer this opportunity.

Wholesale fashion distribution

Wholesale fashion distribution refers to the global market of bulk clothing sales, in which producers, wholesalers and sellers are involved in a commercial, business-to-business process. Most wholesalers get their fashion stocks from the producers that commercialize the latest collections in bulk, at volume discounts. Others purchase overstocks and closeout merchandise from retailers or distributors. Their clients are the resellers that purchase those stocks and sell it to the final consumers. Often, this process is financed through merchant factoring or vendor finance. In other cases, the merchant is assessed counter rent for a store-within-a-store concept, common in the cosmetics industry, but also not unheard of in clothing. In other cases, the vendor agrees to buy back unsold merchandise from the retailer this is a common arrangement for higher-value seasonal clothing, like designer coats.

Types of wholesale market

Wholesale markets can either be primary, or terminal, markets, situated in or close to major conurbations, or secondary markets. The latter are generally found only in larger developing countries where they are located in district or regional cities, taking the bulk of their produce from rural assembly markets that are located in production areas The distinction between rural assembly markets and secondary wholesale markets is that secondary wholesale markets are in permanent operation (rather than being seasonal in nature or dealing in specialized produce), larger volumes of produce are traded than at the rural assembly markets and specialized functions may be present, such as commission agents and brokers. Terminal wholesale markets are located in major metropolitan areas, where produce is finally channelled to consumers through trade between wholesalers and retailers, caterers, etc. Produce may also be assembled for export. In some countries, such as India and China, terminal markets also supply other parts of the country.

Wholesaling trends

Wholesale markets develop in a number of stages. They start as general markets, then become more specialized by trading in specific types of product. A later stage is to transact only graded and well packaged produce. A recent trend in Western Europe and the USA is for large retailers to by-pass the wholesale market system. Direct links are created between producers and supermarket chains, often by means of contract farming arrangements or through the use of preferred suppliers. Following the collapse of the iron curtain a large number of markets were developed in Eastern and Central Europe in the 1990s and early 2000s. Examples include markets in Warsaw, Gdansk, Budapest, and Bucharest. In other parts of the world, new markets have been built in Amman, Cairo and Mumbai, among many recent developments. Very few new wholesale markets have been built in western countries in the last decades, although old markets have been relocated to new sites (e.g. the new Covent Garden Market relocated to Nine Elms in London and Rome's new wholesale market, relocated from the centre to the east of the city). Those that already exist have tended to also attract warehouses for integrated food distribution, changing their role to food centers (in the USA) and including other non-fresh food products. Wholesale markets still have a role in the marketing of horticultural produce but the traditional fresh meat and fish wholesale markets, particularly those dealing with wholesale live produce, are generally being closed down in major urban centres. In developing countries, changes in work patterns, particularly the employment of women, and the impact of technological innovations in post-harvest handling, food processing and storage, including the use of domestic refrigerators, tends to encourage the development of one-stop shopping at supermarkets, often on a once-a-week basis. The challenge for wholesale markets in such a trading environment is to retain turnover, both by providing new services to supermarkets and by developing services to the non-supermarket trade and the growing hotel and catering sectors.

Wholesale Electronics

The only way to get true wholesale prices is to get the product directly from a Certified Product Wholesaler. That is why we have spent years visiting tradeshows, visiting wholesalers and finding genuine wholesale suppliers who will work with new online sellers. It's not easy, but after over a decade we have collected the internet's largest, most comprehensive Directory of Certified Wholesalers you can find anywhere

Business-to-business

Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process (e.g. a food manufacturer purchasing salt). A business needs the services of another for operational reasons (e.g. a food manufacturer employing an accountancy firm to audit their finances). A business re-sells goods and services produced by others (e.g. a retailer buying the end product from the food manufacturer). B2B is often contrasted against business-to-consumer (B2C). In B2B commerce it is often the case that the parties to the relationship have comparable negotiating power, and even when they don't, each party typically involves professional staff and legal counsel in the negotiation of terms, whereas B2C is shaped to a far greater degree by economic implications of information asymmetry.

E-commerce

E-commerce is a transaction of buying or selling online. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle although it may also use other technologies such as e-mail. E-commerce businesses may employ some or all of the followings: Online shopping web sites for retail sales direct to consumers Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales Business-to-business buying and selling; Gathering and using demographic data through web contacts and social media Business-to-business (B2B) electronic data interchange Marketing to prospective and established customers by e-mail or fax (for example, with newsletters) Engaging in pretail for launching new products and services Online financial exchanges for currency exchanges or trading purposes.

International business

International business comprises all international trades services or investments(Bonds, Stocks conducted by both the private and public sectors that take place between two or more countries beyond their political boundaries. The term international business refers to all those business activities which involve cross-border transactions of goods, services, and resources between two or more nations. Transactions of economic resources include capital, skills, people for the purpose of the international production of physical goods and services such as finance, banking, insurance, construction etc. International Business can also be refer as globalization. Globalization is the shift toward a more integrated and interdependent economy. In order to conduct business overseas, multinational companies need to separate national market into one huge global market place. Two macro factors underline the trend of greater globalization. The first is falling of barriers to make cross-border trade easier such as the free flow of goods and services, and capital, and the second factor is technological change, particularly the developments in communication, information processing, and transportation technologies.

Branded export surplus

In some case buyers cancel the shipment, these cancel garments are generally known as stock lot or export surplus garments. Besides, leftover garments those remain in factory are called stock lot or surplus garments. Almost all factories sell their stocks garments at very cheap price compared to actual price. Generally a factory extra cutting of garment 2.5% – 5% to fulfill the total order quantity. After completed shipment of garments as per order quantity. The Extra garments are called stock lot or surplus garments. Some of garments are rejected by buyer’s representative during inspection. The main cause of rejection the quality does not meet the buyer requirement as per order. These garments is also known as stock lot or surplus garments. Cancel Shipment: The main reason of stock lot garments is shipment cancel. It may be happen due to delay of shipment as per pre scheduled. Sometimes buyers cancel the shipment when the garment does not meet the requirement as per ordered specification.

Buy and sell wholesale electronics products

If you plan to buy and sell new products, your buying sources will include manufacturers, sales agents, craftspeople, wholesalers, importers, distributors and liquidators. Deciding whom you will buy from will be largely based on criteria relative to your specific needs, and revolve around product price, supplier reliability, product quality, product and supplier guarantee, supplier terms, and supplier fulfillment. For instance, if you are short on storage space and adequate transportation, then suppliers who drop-ship orders directly to your paying customers will be a far more attractive supply source, even if their unit costs are higher than suppliers who do not offer drop-shipping options. Buying wholesale electronics for your store is a good idea if you want to save a lot of money than buying in retails or piece by piece. Many people are fond of buying electronics items and gadgets, that’s why it is a good choice to handle a business involving electronics. When you are in the business of selling items, like electronics items and gadgets, the first priority of business owners is how to save on buying the stocks for their stores. Obviously, the main reason why you are selling is to earn from the products that you are marketing to the buyers. There are numerous things that you should consider not only for the prices, and the success of your business will depend on how you manage well your electronics store. One of the main reasons why many store owners are engaging in buying wholesale is the opportunity to get bigger discounts. This means that the more items or units that are being ordered are subject to huge discounts. If this happens, store owners have also bigger chances to earn large profits once all the units are being sold, in which the price of each unit is usually priced double from the original price. Another convenience of buying wholesale is that the products are being delivered in bulk, thus saving more on the shipping and handling cost for the delivery of the items. This idea is also time-saver, as you are expecting for your order to come in one shipment so you can immediately display and sell the electronics units. However, finding the cheapest sources can be a tough job because there can be hundreds of suppliers out there, and usually the quality is another big issue when it comes to finding the right brands. In view of this, we can give you valuable tips on how to buy wholesale electronics without worrying too much. Buying previously owned items for resale is an entirely different ball game because the product sources are much different. There are no wholesalers, manufacturers and sales agents to supply you with cheap products for resale. Instead, you have to rely on your detective abilities and negotiation skills to track down the best items to purchase cheaply. These sources will include private sellers, auctions, flea markets, online marketplaces, garage sales, and thrift shops.

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