Wholesaling is a practice that has been on the rise in the recent days. This trend has elicited mixed reactions and sparked global concerns as many traders have resulted to making huge sales as opposed to the past where people had adopted the practice of buying products in smaller quantities. This begs the questions, what has triggered this new trend? Are there financial benefits associated with this new practice as opposed to the previous small purchases? In a bid to unveil the mystery; let’s flex muscles and delve into nitty-gritty details of wholesaling.
What has triggered this practice? Starting the discussion on this note will give a solid platform for proper dissection of the whole topic in totality. First, there are numerous benefits associated with wholesaling. For instance, wholesaling reduces the number of intermediaries between the seller and the buyer. Anyone with shreds of information on business will clearly see that reduction in the number of intermediaries results in lower prices. It therefore follows that wholesaling lowers the price of products or the goods being sold. Wholesale mini dresses for instance have been found to cost less than they would if someone purchased piece by piece.
Wholesaling also reduces business risks one has to bear. How is that possible? While retailers keep goods in small portions for long a longer time, wholesalers sell in bulk hence reducing risks of damage of goods while still in their possession. It therefore goes without saying that wholesaling is a risk reduction practice at some point.
Since wholesaling is aimed at selling for resale purposes, wholesalers do not incur cost of having to customize their goods. Procedures like branding, labeling as well as improvement of quality and designs are left to the retailers. This in turn cuts down on the cost wholesalers incur in the overall buying and selling process.
Wholesalers offer lots of subsidies to their buyers. Women’s clothing have for a long time been sold on wholesale basis. Perhaps this is one of the reasons why men’s clothing is much expensive as compared to women’s clothes. While wholesalers offer considerable price reductions to their clients, prices rise as more and more intermediaries come into contact with the goods. Wholesale mini dresses have been noticed to yield a lot of profits after resale since they are bought at a low price from the wholesalers.
In a jiffy, wholesaling is a practice that has marked a welcome departure from the olden practice of having to purchase a few pieces of goods which resulted in huge expenses.