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In other cases, the merchant is assessed "counter rent" for a "store-within-a-store" concept, common in the cosmetics industry, but also not unheard of in clothing. In other cases, the vendor agrees to buy back unsold merchandise from the retailer — this is a common arrangement for higher-value seasonal clothing, like designer coats.
Suppliers ship truckloads of products to the distribution center, which stores the product until needed by the retail location and ships the proper quantity. Since a large retailer might sell tens of thousands of products from thousands of vendors, it would be impossibly inefficient to ship each product directly from each vendor to each store.
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services.
The main features of cash and carry are summarized best by the following definitions: Cash and carry is a form of trade in which goods are sold from a wholesale warehouse operated either on a self-service basis or on the basis of samples (with the customer selecting from specimen articles using a manual or computerized ordering system but not serving themselves) or a combination of the two.
If multiple truckloads are needed for a large shipment, truckload shipping generally is cheaper, faster, and less damaging to goods than booking a large number of less-than-truckload shipping trips. Efficiency and productivity of the goods' packaging can be improved in truckload shipping.
Bulk purchasing or mass buying is the purchase of much larger quantities than the usual, for a unit price that is lower than the usual.. Wholesaling is selling goods in large quantities at a low unit price to retail merchants.
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