Knowee
Questions
Features
Study Tools

The primary source of revenue for a wholesaler is

Question

The primary source of revenue for a wholesaler is

🧐 Not the exact question you are looking for?Go ask a question

Solution

The primary source of revenue for a wholesaler is the sale of goods in bulk to retailers, who then sell the products to the end consumers. Here are the steps:

  1. The wholesaler purchases goods in large quantities directly from manufacturers or importers.

  2. These goods are stored in a warehouse until they are sold.

  3. Retailers purchase these goods from the wholesaler in large quantities.

  4. The wholesaler sells these goods at a higher price than what they were purchased for. The difference between the purchase price and the selling price is the wholesaler's profit.

  5. This profit from selling goods is the primary source of revenue for a wholesaler.

  6. In addition to this, some wholesalers may also charge for delivery or offer additional services to retailers for an extra fee, which also contributes to their revenue.

This problem has been solved

Similar Questions

For many businesses, a major source of ________ comes from the sale of merchandise and productsa.ROIb.revenuec.goodwilld.profit

1.Selling of goods to consumers in small quantities as per their need at ________________________ prices. 2. Wholesalers act as a link between _________________ and the retailer. 3. A retail store deals primarily with sales ____________________ in retailing. (a) volume (b) location (c) places (d) value 4. The term ‘wholesale’ means the selling of goods for business use or for ________________ purpose. (a) sale (b) resale (c) post sale (d) None of the above 5. The term ‘retailing’ refers to a business deal in which the seller sells in large quantities as per the need of the customer. (T/F) 6. What do you understand by the term ‘Retail’? 7.What are the essential requirements of a retailer? 8. List down the retailer’s services to the customer.

discuss the services offered by retailers to wholesalers.

According to International Accounting Standards “revenue is the gross inflow ofeconomic benefits during the period arising in the course of the ordinary activities”(IAS 18). Describe the main source of revenue for a trading goods business with anexample.

Analyse one function performed by wholesalers in a traditional channel of distribution.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.