Retail and wholesale. Wholesale. Retailers

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Trade has always been the most important product of the life of any society. Even in ancient times, those countries that promoted the development of sales on their territory not only strengthened their power, but also additionally created the general we alth of the entire population without exception. The first trade was to exchange the surplus of their products, at this point there were no standards, so everything just happened in the same amount. Gradually, the individual needs of a person became the main idea of such relationships. In the modern world, retail and wholesale trade appeared, which focused not only on a different number of buyers, but also on the specific features of business types.

Features and functions of wholesalers

This kind of relationship involves selling in large quantities. Volumes of this kind are acquired for subsequentresale or professional use in business. In other words, wholesalers are intermediaries between manufacturers and retailers. At their expense, the efficiency of the overall trading process is ensured. Wholesale trade is much more productive due to the scope of operations and more business contacts. Goods purchased from such businesses are used for resale or for business purposes.

Functions:

• sales and its motivation;
• purchasing and creating a product range;
• breaking large batches of goods into small ones;
• warehousing;
• full or partial transportation;
• risk taking;
• provide relevant market information;
• management and advisory services.

Factors influencing the development of wholesale trade:

• growth in mass production;
• increase in production for the future;
• growth in the number of intermediate steps before the final consumer.

Differences

Retail and wholesale have some features:

• when selling in large volumes, the location of the store does not really matter;
• work only with professional clients;
• quite large volumes of transactions;
• trading area is large;
• wholesalers only have cashless payments;
• differences in tax policy.

Company classifier

Wholesalers are of the following types:

1. Wholesalers-merchants are independent enterprises that always have the full right to own the goods sold. They can carry out both a full service cycle, which includes storage, payment by installments and delivery, and a limited one, requiring immediate payment for the goods and not providing for delivery.
2. Brokers and agents. Such firms are, in a sense, intermediaries in the process of buying and selling, who receive a certain amount of money for their services and do not bear any responsibility for the goods.
3. Wholesale branches and manufacturers' offices are one of the main types of trade, they work directly with the buyer and are official representatives of a particular manufacturer.
4. Various specialized wholesalers. Available in some sectors of the economy, collect goods from small traders in large quantities and sell to large enterprises.

Wholesale Accounting

The choice of account depends on the type of activity of the company. The following are used in the Chart of Accounts: 41 - "Goods" and 45 - "Goods shipped". Account 41 is needed to control data on the presence and movement of inventory items, regardless of the method of their acquisition. Accounting takes place at the actual cost, namely, the costs of the enterprise for its acquisition without taxes. 45 account is used to record the movement of shipped products, sales proceeds. Additionally, finished products are taken into account here, whichgiven on a commission basis. The cost of goods is calculated from the actual production cost and shipping costs.

There are these types of wholesale trade:

• sale from stock;
• sale in transit.

According to the law, the proceeds for the goods sold are displayed in the accounting department at the time of shipment. Simply put, immediately after the actual shipment, the accountant reflects this operation in accounting, even if the payment has not yet passed. The proceeds are the funds received for the goods, in accounting it looks like this - Dt 62 / Kt 90.1 “Revenue”. The next operation is tax reflection.

The most needed accounting entries

The following are used for accounting:

• accounting for incoming goods - Dt 41 /Kt 60 /;
• reflection of VAT - Dt 19.3 / Kt 60;
• decrease in debt to the supplier - Dt 60 / Kt 50, 51;
• advance payment to the supplier - Dt 60 / Kt 50, 51.

Different types of wholesale trade do not affect the basics of accounting.

Retail

This type of relationship is the sale of goods to the final consumer for their own needs without further resale. An indispensable attribute is a cash register and a check. The retail store must meet certain criteria:

• sales area;
• number of product names;
• service level;
• technologyproduct placement.

The main basis of this trade is the margin - the difference between the purchase price and the sale price, it is the margin that is the main income. The main purpose of retail trade is to provide maximum convenience when offering goods to the consumer, regardless of personal capabilities. There are the following types of retailers:

• by assortment breadth;
• by price level;
• by nature of service.

The above types of trade can be combined and create a new direction, such as wholesale and retail trade. It is a mixed form of relationship that is usually done through trading houses or distributors. With this type of relationship, wholesale transactions of small and medium size take place, they are carried out from the warehouse of the outlet.

Retailers

The main factors for classifying enterprises are:

• product assortment;
• price level;
• concentration of the trading network;
• form of ownership;
• service level;
• service feature.

Most common businesses

In retail, each business belongs to a specific group:

1. Specialized stores - carry out trade in a certain group of goods. Their main task is to satisfy the needs of certain targetmarkets. There are no other products on their shelves.
2. Department stores are large enterprises that sell a wide range of different goods. Here, each group is divided into a separate department, which is a specialized full-range store. In such places there is no self-service, the presence of a seller and a counter is mandatory.
3. Supermarkets - are engaged in meeting the needs of potential buyers in food products. The peculiarity is that there is self-service, low prices and a large sales volume.
4. Supermarkets - the presence of a large trading area and a range of various goods, the minimum labor costs of sales personnel. It has both self-service and full service departments. The calculation occurs after making all purchases when leaving the store.
5. Hypermarkets - the sales area is gigantic, the product range is represented by a huge number of different product names. The main principles are: low prices, extended opening hours, large parking lot, self-service. In such stores, you can not only make food purchases for a long time, but also purchase any goods that belong to other groups.
6. Convenience stores are small in size and stock a limited range of certain items. They are located close to customers and provide only popular goods that are sold through the counter. These are considered small shops locatedeither in residential buildings or close to them.

Retailers and wholesalers have their own special points of sale that meet certain standards.

Non-traditional forms of selling

Previously, purchases could only be made in certain places. To do this, you had to visit the store, select a product and immediately deposit money for it. This form has always had disadvantages: a lot of time, lack of the right product, and others. Today, other forms of trading have emerged that are great for goods with a small turnover:

1. Order by phone - your orders are collected over the phone, after which you receive delivery to the specified address at a convenient time.
2. Vending machines - provide 24/7 self-service sales.
3. Discount ordering service – facilitating certain groups of people who shop with discounts.
4. Peddling sales - when vendors come to your home.

Retail and wholesale trade have many differences, but together they create the economic situation of any city and even state.