In the business world wholesale trading has become a growing trend among most businessmen as well as business women
. In trade goods merchants act as the middle men who ensure that the goods are able to reach consumers in a presentable state. The entire process of buying goods from the manufacturer in bulk and then redistributing the bulky goods to the retailers is known as wholesaling. After the retailers receive the goods or after buying goods in bulk from the merchant, the retailer breaks the bulk by selling the goods in small volumes to the consumers and the entire process starts all over again.
For retailers, wholesale lots play a very crucial role when it comes to the success of their business. Retailers get to enjoy benefits such as getting products easily without coming into contact with the manufacturer, buying the goods at a reduced price, being given the chance to compete with big businesses and also buying the goods on credit. Apart from all these, some merchants only deal with one type of product from a specific manufacturer therefore; retailers can get a specific kind of good from one merchant which makes their work easier.
When liquidators confiscate goods from a business or an individual, those goods are sold at wholesale lots and for this reason goods are usually sold at a lower price as compared to their original cost.
But with every business there are always challenges that the owner faces. For instance, in wholesaling, finding a suitable location and transport are key problems that must be faced.