What is a Wholesale Market and its Benefits
Reap the Benefits of Wholesale Markets
What is a Wholesale Market?
A manufacturer cannot always sell the goods directly to the consumer; hence, the goods reach the consumer through different distribution channels. Through this long channel of distribution, the products reach you after a long time and at higher rates. Also, as the stock is transported to the retailers in specific quantities, stock-outs are a frequent situation. So, is there any shorter and faster way through which the goods can reach the consumer? Let’s find out.
A wholesale market is one of the most important links in the supply chain of goods. It can be defined as a market where a trader buys goods from a manufacturer in bulk and re-sells the goods to business houses or retailers to further sell the goods to end consumers. A markup on the goods is made at every stage of the distribution channel. Hence, when you, as an end consumer, buy products from a retail store, you pay the maximum price for the products. However, if you can buy the goods directly from the manufacturer or wholesale stores, it can save you a good amount of money.
What are the benefits of buying products from wholesale shops?
1. Unmatched Deals
One of the most pertinent benefits of buying products from a wholesale shop is that the products can be bought truly at cheap prices. Based on the quantities that you wish to purchase; the trader will offer you the prices. In wholesale, the greater the quantity, the lower the per unit cost of the product. You can negotiate the best imaginable deals with a wholesale trader. You may even have a chance to negotiate beneficial credit and payment terms once a rapport is built with the trader.
3. Full variety
Wholesale stores are great places where you can find the full range of a product. You can make a choice from the full range without worrying about the limited varieties available. It is almost rare that a particular product range is not available at a wholesale shop. You would not have to worry about colours, size, features, editions, etc. as the entire range can be found in wholesale markets. As a wholesaler sells to multiple retailers or business houses on a regular basis, they keep the most updated stock.
3. Location ecosystem
In most cases, the wholesale shops are collectively located in one area. When you visit a fully set up market, it is easier to find shops selling similar products in one place. Such markets not only have one kind of product but a variety of products. For example, a wholesale market selling household-related goods will have shops lined up to sell products such as curtains, bed sheets, chairs, cleaning accessories, lighting, etc. If you wish to buy more than one kind of product, it is very cost and time-effective to purchase from a wholesale market. In a wholesale market, warehouse facilities are also easily accessible. Apart from the benefits listed above, transportation infrastructure to support loading, unloading, exporting, and importing is quite well developed within these markets.
A go-to checklist for wholesale purchases:
Prefer to visit a complete wholesale market instead of a standalone wholesale shop. Do try to find out about the kinds of shops available in the chosen wholesale market to make the maximum purchase in one visit. Along with these points, do keep in mind to know the timings of the market, especially the peak hours.
Before making the purchase, do check on the minimum purchase quantity set by the wholesale traders. Based on the quantities, compare the retail price with the final wholesale price to ascertain the cost savings being made on the purchase. Along with the price negotiation with the wholesaler, try to negotiate the credit and payment terms with the trader.
The best thing about shopping at wholesale market is that you can buy the product of your choice at the best possible price and with a minimum amount of logistical effort. While saving you time and money, it makes your purchase wholesome.
On a specific note, wholesale markets in Deira, Dubai are being encouraged a lot. Recently, a huge wholesale market campus has been built to encourage the following developments in the wholesale market ecosystem:
- Creating business models for easy re-export of products
- Give a completely wholesale trade experience to buyers and sellers
- Support for trade and small business houses in Dubai
- Protection of cash flows involved in business
- Ease of transport of goods by keeping the campus in proximity to the harbour
- Increase the trade culture in nearby markets.
It is a favourable move towards the trade of the country by improving the purchasing power of domestic business houses. By creating such well-developed markets, the country is opening its doors for exports and imports.