There are many who have come across the term ‘wholesale distributors’, but do not know the actual meaning of it. It refers to vendors selling products to those, besides the typical consumers. Goods are sold by wholesalers to professional users and businesses, retail stores, commercial or institutional clients, industrial and other wholesalers. They may even act as agents or brokers for others desiring to sell or purchase merchandise. It can include used or new goods and products. Such vendors may work from independent locations or gather together with the other wholesalers at the specialized ‘wholesalers marketplace’. In today’s internet age, wholesalers have entered into UAE e-commerce market.
What do they have to offer?
Typically, wholesale distributors are known to purchase in bulk and make sales in groupings or smaller pieces. The wholesalers mostly are not needed to gather as well as pay sales tax. However, based on location and on occasion, they may be needed to pay up specialized wholesaler tax. They may provide products of small range, manufactured by the same company or offer different types of items to their clients manufactured by numerous companies. Such products may include end user items and components like an automobile or electronic parts, finished products that can be readily purchased by the consumers.
Helping the economy
Traders engaged in the wholesale market have been stated to contribute towards a healthy economy. They provide businesses, institutions and governments with convenient, ready-made and wide source and range of goods, allowing buyers to reduce the housing of stock. It is the wholesalers who are relied upon by the manufacturing companies to distribute and market their products, thus allowing them the freedom to undertake other important tasks. The wholesalers also have the responsibility of taking care of transaction processing, technical support and customer service. Few wholesalers also tend to offer services to customers like advertising, financing, consultations and even installation and repair services.
Wholesalers and their types
Generally, two kinds of wholesalers exist in the market. Merchant wholesalers purchase products in lots or bulk, taking ownership of the products before resale. Individual sales offices and branches of specific manufacturing companies do fall into this particular bracket. The merchant wholesalers also deal with durable goods having the shelf life of over 3 years, including furniture, automobiles, sporting goods, toys and various parts. Also, they sell and purchase non-durable items like drugs, groceries, books, alcohol, gas, etc.