Wholesale and retail trade. Wholesale: what is it, wholesale and retail, wholesale buyers

There are two types of trade: wholesale and retail. The organization of warehouse and accounting, including the procedure for posting goods, determining selling (sale) prices, registering the release of goods to third parties, etc.
To define the concepts of wholesale and retail trade, let us turn to GOST R 51303-99.
Wholesale is the trade in goods with their subsequent resale or professional use. A wholesale trade enterprise carries out the purchase and sale of goods for the purpose of their subsequent resale, and also provides services for organizing the wholesale circulation of goods.
Retail trade is the sale of goods and the provision of services to customers for personal, family, home use not related to business activities.
Company retail carries out the purchase and sale of goods, performance of work and provision of services to customers for their personal, family, and home use. For reference economic activity Retailers use shops, pavilions, kiosks and tents.
Retail trade enterprises are classified according to the range of goods sold by type: universal, specialized
ny stores, stores with a combined and mixed assortment of goods.
The type of retail trade enterprise is determined by sales area and shape trade service buyers. Types of retail establishments are: department store, department store, fabric store, grocery store, etc.
Depending on the characteristics of trade services to customers, the availability of retail premises and equipment, the following types of retail trade are distinguished: trade through a stationary retail chain; trade through a mobile (delivery and distribution) trading network; trade in forwarding ordered goods.
A summary classification of retail chain facilities is presented in the following table:

Retail trade is carried out in various forms, among which are the following: sale of goods with customer service at a retail facility (at the place where goods are sold); sale of goods based on samples; sale of goods by order and at customers’ homes; sale of durable goods on credit.
Sale of goods with customer service at the point of sale
goods, as well as for orders and at home, is regulated by the “Rules for the sale of certain types of goods”, approved by Decree of the Government of the Russian Federation of January 19, 1998 No. 55 (hereinafter referred to as the Rules), and the rules for the operation of retail trade organizations in the territories of the constituent entities

Russian Federation, accepted executive bodies these subjects.
Trade in alcoholic beverages is regulated Federal law"ABOUT government regulation production and circulation of ethyl alcohol, alcoholic and alcohol-containing products" dated November 22, 1995 No. 171-FZ and the above-mentioned Rules.
Similarly, the sale of civilian and service (if their buyers are citizens entitled to service weapons) cold steel and firearms, their main parts (barrel, bolt, drum, frame, receiver), as well as cartridges for them, is carried out in accordance with Federal Law dated December 13, 1996 No. 150-FZ “On Weapons” and the Rules.
When selling goods in consignment stores, you should be guided by the “Rules for commission trade in non-food products”, approved by Decree of the Government of the Russian Federation of June 6, 1998 No. 569.
The sale of goods based on samples is regulated by Article 497 of the Civil Code of the Russian Federation, Article 26.1 of the Law of the Russian Federation dated 02/07/1992 No. 2300-1 “On the Protection of Consumer Rights” and “Rules for the sale of goods based on samples”, approved by Decree of the Government of the Russian Federation dated July 21, 1997 No. 918.
The approximate rules of trade in the wholesale food market were approved by joint order dated December 1, 1994 of the Ministry of Agriculture and Food of the Russian Federation No. 292 and Roskomtorg No. 95. Trading network
A trading network is a set of trading enterprises located within a specific territory or under common management.
Trading enterprise- this is a property complex used by an organization for the purchase and sale of goods and the provision of trade services.
The wholesale (trade) network is represented by wholesale trade enterprises.
The retail (trading) network is represented by retail trade enterprises.

More on the topic Wholesale and retail trade:

1. Agafonova Marina Nikolaevna. Accounting in wholesale and retail trade and document flow, 2009
2. ORGANIZATIONAL FORMS OF WHOLESALE TRADE 1.8.1. The essence and objectives of wholesale trade
3. The timing, organization and procedure for conducting inventory in wholesale and retail trade organizations, its documentation, the procedure for reflecting inventory results in accounting.

There are 2 main types of trade - wholesale and retail. What are the specifics of each of them?

What are the specifics of wholesale trade?

In the legislation of the Russian Federation wholesale is defined as a type of commercial activity that involves the purchase and sale of goods for the purpose of using them in business (for example, for resale) - that is, not for personal consumption. Wholesale trade is most often carried out when concluding supply contracts. Under relevant contracts, suppliers transfer to deadlines goods produced by them or purchased from partners to their buyer for subsequent use in business. Thus, wholesale trade can be called the main subject of the relevant agreements.

Buyer of goods within the scope of wholesale - most often individual entrepreneur(for example, a store owner) or entity. But it happens that individuals also take part in the relevant contracts. True, the subsequent resale of the goods may not be very profitable for them from a tax point of view. Therefore, to participate in wholesale transactions, citizens, as a rule, register as individual entrepreneurs or founders of business entities.

Strictly speaking, an individual entrepreneur is also an individual, but registered in government agencies in the prescribed manner as a subject entrepreneurial activity. But when dealing with goods (for example, if we are talking about the resale of goods purchased in bulk), an entrepreneur most often has the right to use a tax regime with a lower payment burden than an individual who is not registered as an individual entrepreneur.

As a rule, wholesale deliveries involve the sale of goods in significant volumes. Moreover, the cost of 1 unit of product within a large batch is usually significantly lower than if the goods were purchased in smaller batches or individually. As a result, the buyer of wholesale goods can profitably resell the purchased products.

What are the specifics of retail trade?

The legislation of the Russian Federation determines retail trade How commercial activities, in which the supplier of the product sells it to the buyer for further use of this product for personal purposes of the person who purchased the product, that is, not related to business activities.

The buyer of retail goods is most often an individual. Sometimes - an individual entrepreneur, who from a legal point of view, as we noted above, also acts as an individual. An organization can also be a participant in retail transactions if its owner, in accordance with the procedure established by law, intends to use the purchased goods not for business, but for personal purposes.

As a rule, single products or supplied in relatively small batches are sold at retail.

Comparison

The main difference between wholesale and retail is how the goods purchased from the supplier are used by the buyer. With wholesale, their further involvement in business is assumed (for example, their subsequent resale). In retail, the purchased product is used personally by its purchaser, members of his family and other persons to whom he can transfer the product.

As a rule, the parties to transactions within the framework of wholesale trade are legal entities and individual entrepreneurs, and quite rarely - individuals. In retail trade, individuals, in turn, take a significantly more visible part.

Wholesale transactions often involve the supply of large quantities of goods. Retail, on the contrary, are characterized by relatively small volumes of purchases.

Having determined what the difference is between wholesale and retail trade, we will reflect the conclusions in the table.

Table

Wholesale	Retail
Involves the sale of goods that are subsequently used by the buyer in business activities (for example, for resale purposes)	Involves the sale of goods that are subsequently used by the purchaser for personal purposes
Parties to wholesale transactions are, as a rule, legal entities and individual entrepreneurs, individuals - very rarely	Individuals regularly participate in retail transactions (most often as buyers of goods)
Wholesale contracts often involve the supply of large quantities of goods, which can, for example, be profitably sold separately in the future	Retail transactions typically involve the sale of single items or those presented in relatively small quantities.

Retail(retail, English retail) - sale of goods to the final consumer (individual). Moreover, it does not matter at all how exactly goods or services are sold (by personal selling, by mail, by telephone or through a vending machine), as well as where exactly they are sold (in a store, on the street or at the consumer’s home).

Unlike wholesale trade, goods purchased in the retail trade system are not subject to further resale (according to current legislation, paragraph 1 of Article 492 of the Civil Code of the Russian Federation), but are intended for direct use.

The relationship between the seller and the buyer in the retail system is usually regulated by a special law. In the Russian Federation this is the Law on Protection of Consumer Rights.

Federal Law of December 28, 2009 N 381-FZ (as amended on December 23, 2010) “On the Fundamentals of State Regulation trading activities in the Russian Federation" (adopted by the State Duma of the Federal Assembly of the Russian Federation on December 18, 2009) introduces the following definition of retail trade:

"...3) retail trade - a type of trading activity associated with the acquisition and sale of goods for use for personal, family, household and other purposes not related to business activities;..."

The subjects of the retail trade process are the seller and the buyer. Retail trade includes the sale of goods through vending machines.

There is a concept of format retail store. This is a set of characteristics inherent in any type of store. These characteristics are:

Square trading floor

Number of product items

Customer service level

Product placement technology

Wholesale trade uses supply agreements, retail trade uses retail purchase and sale agreements. Thus, the main difference between wholesale and retail is the purpose of the purchase. The definition of wholesale or retail does not depend on the type of payment and the quantity of goods sold. However, you are not required to set a purchase goal either at the time of sale or after it.

If a person comes to you without documents, then he can purchase goods only for personal use, since entrepreneurial activity without registration is prohibited. Therefore, it will be retail.

If a person comes to you and shows you a certificate of registration as a legal entity, it means that the goods are not being purchased for personal use. It will be wholesale.

If a person comes to you and shows you a power of attorney from a legal entity, it means that the goods are not being purchased for personal use. It will be wholesale.

Wholesale- trade in consignments of goods. Most often, goods purchased from a wholesaler are intended for subsequent resale. But it is also not uncommon for large consumers of goods to act as buyers. Wholesale trade is an intermediary between the manufacturer and retail trade. Participates in accelerating the movement of goods, synchronizing production and consumption.

In other words: wholesale trade (wholesale) is trade between organizations, organizations and entrepreneurs, entrepreneurs and entrepreneurs. That is, this is trade when a product is sold not for final use, but for business needs (for resale or for use in production). However, it is worth noting that when a wholesale seller (legal entity or entrepreneur) sells a product to a wholesale buyer (entrepreneur or organization), the wholesale seller cannot know exactly what the product will be used for. For example, a budget library buys a notebook - this notebook can be used for resale if the library has a store(that is, used for business activities), and for final consumption - for example, issued to a librarian. Libraries are institutions that are a priori not created for profit; they are simply allowed to conduct business if there is a desire and opportunity. If the notebook is given to the librarian, then this is final consumption, and the transaction of selling the notebook was not a wholesale trade.

Definition and taxes

The fundamental differences are practical significance. It is the definition of retail or wholesale that affects the payment, attribution of profit amounts to retail or wholesale, and, therefore, the correctness of inspection checks, the calculation of fines and additional amounts.

Retail turnover is the volume of sales of goods and services provided to the population. Use of products and services may be solely for personal, family and household use. The formation of the amount of trade turnover also includes sales of goods, the consumption of which involves joint consumption. These are sanatoriums, rest homes, kindergartens, hospitals, nurseries, nursing homes. In this case, the form of payment can be either cash or non-cash.

Wholesale is the sale of goods and services, which will then be used in commercial circulation for the purpose of obtaining.

What documents define wholesale and retail

• Civil Code of the Russian Federation, Articles 492 and 506. The ultimate goal of sales is the main sign of determining the differences between wholesale and retail trade.
• Exists state standard, defining terms and definitions in trade, GOST R 51 303-99.
• In the Tax Code of the Russian Federation, Art. 346.27, retail and wholesale trade are also defined by the end result of use. The recipients may in both cases be legal or individuals, form of payment - cash or non-cash.
• The type of activity in which buyers receive cash register receipts and sales receipts, but invoices and invoices do not, can be transferred to UTII, explains the letter of the Ministry of Finance of Russia in a letter dated August 30, 2006, No. 03-11-04/3/393, since this retail.

Criteria for determining wholesale and retail

1. The seller is not obliged to track how the buyer disposes of the goods purchased from him; the criterion for wholesale will be the invoice with the amount allocated. This is the basic document for the tax office.
2. Registration of the transaction with an invoice, plus a cash order for receipt, this is quite enough to define the sale as a wholesale one. Cash receipt and sales receipt- this is retail. The size of the sales area and the type of trade that is stationary or not also matter.
3. Today, when it appeared arbitration practice, decisions are not always made in favor of the tax inspectorate. For example, fines and sanctions against an enterprise that sold products to a sanatorium were found by the arbitration court to be unjustified, since there was joint consumption of the goods. The paperwork was not the defining moment. It also mattered that the company paid taxes, but the tax office did not make adjustments and did not make corrections in a timely manner.
4. It should be noted that attempts to find loopholes in the law, as a rule, do not bring success. Decor wholesale a retail purchase and sale agreement, in which it will be written in black and white that “it is not intended for purposes used in business activities,” is hypothetically possible. In practice, the tax office will probably find a violation.

Wholesale trade is the purchase and sale of goods. Workers in this activity provide communication between producers and consumers. Sometimes a whole organization becomes a client of a wholesale enterprise. She is essentially both a buyer and a consumer. But most often there are one or more intermediate links. Until a product makes its way from the wholesaler to the consumer, it usually passes through 2-3 intermediaries (retailers).

Wholesale marketing includes any type of activity related to the sale of services and products to people who will resell them or use them for personal or business purposes.

What is wholesale trade?

Wholesale trade is one of the types of economic activity that helps to establish relationships between suppliers and buyers. During their interaction, each has its own benefit. Buyers receive affordable goods, sellers receive profit.

On this moment Wholesale trade is developing very rapidly, suppliers and the scope of their activities are expanding day by day. This is due to constant profit, good income. In addition, the emergence of new suppliers is also beneficial for buyers, since the range and competition between them is growing. This invariably leads to lower production costs and, as a consequence, lower prices at final retail outlets.

Wholesale sales do not have a fixed quantity of goods supplied. An agreement is concluded between the supplier and the buyer, which specifies the amount and number of products. The only thing we can say for sure is that trade is carried out in batches. Typically, delivery is focused on subsequent resale to the final buyer.

Wholesalers and their differences from retailers

A wholesaler is a company or individual that carries out related activities. It provides its services not only to retail organizations, but also to manufacturers and their sales offices.

A wholesale trade center and the people involved in this activity differ from retail centers in several ways:

• Minimizing advertising. A wholesaler deals with professional clients who independently collect information about the product. Only end consumers are interested in advertising.
• Maximum transaction size, as well as a large trading area. Compared to retailers, these parameters are several tens (or even hundreds) times higher.
• Different positions regarding legal norms and taxation by the state.

Sometimes manufacturers bypass wholesalers and market the goods themselves. But this is aimed mainly at small businesses. Large manufacturers prefer not to waste time searching for customers.

Wholesale trade and its essence

The wholesale trade center initially interacts with manufacturers. He goes to the sales office, where he “picks up” a certain amount of products (sometimes all the goods). Then it goes to retailers, and we distribute the shipment between them. Again, sometimes all the goods are picked up by one representative or company. After this, the products are supplied directly to personal consumption.

The most important task of this type economic activity is the regulation of supply and demand. Trade centers, in fact, can successfully cope with it, since they are the so-called intermediate link. They hold back some of the goods, then the demand for them will increase. Also, to increase supply, the products are supplied to the market in abundance.

It should be noted that wholesale trade activities are significantly limited. She can only work with the data that is given to her. It cannot influence the sphere of production or final sales. And she certainly doesn’t have any direct impact on consumers.

Wholesale functions

Wholesale trade enterprises are sources of communication between individual regions countries, and also in a global sense, they promote interaction between states, both neighboring and distant. This is their main function. But there are also minor ones:

• Stimulation manufacturing enterprises regarding the creation of new products, the modernization of old models and the widespread introduction of modern technologies.
• Participation in creating a range of goods and services, monitoring market conditions.
• Assumption of commercial risk. Some products may become unsaleable. Therefore, there will be no demand for them among retailers. It will not be possible to return the invested funds.
• Organization of warehouse operations, providing all conditions for storing certain products.

Finally, it should be pointed out that wholesale trade in products is intended for another function. She delivers goods to retail chains. Otherwise, they will not see the end consumer.

Retail and consumer service levels

Wholesale and retail trade are very similar. Both of these concepts imply that sales activities will be carried out. But retail sales are the sale of products to end consumers who will use them for personal purposes that are far from commercial.

There are several levels of service in the activity under consideration:

1. Self-service. It implies that a person will independently choose products and their names.
2. Free selection of products. Indicates that the consumer will be offered many goods of the same purpose, among them he will choose those that he likes best.
3. Limited service.
4. Full service (like in a restaurant).

Exists great amount enterprises engaged in retail trade. These include various shops, catering establishments and others.