Here are the root differences between domestic and international wholesaling:
Domestic Wholesaling
- Domestic wholesaling refers to the sale of goods within a country’s borders.
- The buyer and seller in domestic business belong to the same country, making it easier for both parties to understand each other and enter into business deals[1].
- Domestic wholesalers can optimize operations such as transportation, insurance, storage, customs, and more to reduce transaction costs[1].
- Domestic wholesalers can provide easier access to goods for retailers and other businesses within the same country, without the added complexities of cross-border transactions[3].
- Domestic wholesalers have a better understanding of the local market and can tailor their products and services to meet the needs of local customers[1].
International Wholesaling
- International wholesaling refers to the sale of goods across national borders.
- The buyer and seller in international business belong to different countries, which makes business dealings relatively difficult due to differences in their languages, attitudes, customs, etc.[1].
- International wholesalers need to comply with different import/export regulations or safety standards when selling goods internationally[6].
- International wholesalers need to optimize logistics and supply chain management to reduce shipping costs and improve delivery times[1].
- International wholesalers need to conduct thorough research on the target market, including cultural differences, regulations, and competition[6].
In summary, the root differences between domestic and international wholesaling are related to the location of the buyer and seller, the complexities of cross-border transactions, compliance with regulations, logistics and supply chain management, and understanding of the local market.
Citations:
[1] https://www.geeksforgeeks.org/difference-between-domestic-business-and-international-business/
[2] https://samsinstitute.com/asset/5d4492eabb38f
[4] https://www.sganapati.com/files/Ganapati_Wholesalers_2020.pdf
[5] https://www.referenceforbusiness.com/encyclopedia/Val-Z/Wholesaling.html
[6] https://www.shiprocket.in/blog/wholesaling-vs-retailing/