Retail is… What are retailers and retailers? Wholesale and retail - the difference. The difference between wholesale and retail

9.4 Retail and wholesale trade

Retail - any activity for the sale of goods or services directly to final consumers for their personal non-commercial use.

Types of retail trade enterprises . Self-service retail outlets provide customers with the opportunity to independently select goods, they are the basis for organizing trade at low prices. Retailers with free selection of goods have vendors to contact for assistance. The client completes the transaction by approaching the seller and paying for the purchase. The costs in this case are slightly higher than with self-service. Retail trade enterprises limited service provide the buyer with a higher level of assistance from the sales staff. In such stores, customers are provided with more information, they offer services in the form of selling on credit. Full Service Retailers- These are fashionable department stores, their sellers help the buyer in the process of searching, comparing and choosing goods. Wealthy consumers prefer these stores because of well-trained staff, a wide range of specialty and fashion products, a variety of credit schemes, delivery of purchases, etc.

The proposed product range can serve to classify retail outlets. Specialty stores offer a wide range of products. Examples include clothing, sporting goods, furniture, flower and book stores. department stores offer several assortment groups of goods - usually clothes, household items, household goods. Each assortment group is handled by a special department of the department store. supermarkets- These are large self-service enterprises with low costs and margins, a large volume of sales. They are designed to fully meet the needs of the consumer in food, and sometimes laundry, detergents and home care products. Packaging technology makes it possible to offer the consumer products in containers and packaging convenient for storage. The use of electronics and computers provides automation of accounting and control. Service Retailers- these are hotels, banks and airlines; colleges, hospitals, cinemas and restaurants; repair services and establishments for the provision of personal services (hairdressers, beauty salons, etc.). The number of service retailers is growing faster than the number of goods retailers.

Prices. The classification of trade enterprises can be carried out on the basis of the price level. Low prices are typical for the following stores. Discount Stores trade at low prices due to small margins with large volume sales. The use of discount prices, the sale of low-quality goods are not typical for a discount store. Such a store sells quality goods at low prices with a high inventory turnover. The inventory turnover in it reaches up to 15 times a year, and not 5-7 times, as in department stores. warehouse store is a limited-service trading enterprise whose purpose is to sell a large volume of goods at low prices. Traditional furniture stores have long used the practice of selling directly from the warehouse. Shops - showrooms trade according to price lists and catalogs jewelry, computers, power tools, household appliances and other goods. The visitor in the demo department makes his choice and issues the order to the seller.

The nature of the retail space . Although most goods and services are still sold in stores, the growth rate of non-store retail is very high. Some forms of non-store retail can be listed. Retail trade with the order of goods by mail, by phone or via the Internet is a marketing activity using the mail and telephone lines, global computer network for collecting orders, facilitating the delivery of goods, making payments. At trade with catalog order sellers usually send catalogs to a certain circle of customers or provide an opportunity to receive them in their sales premises free of charge or at a low price. Direct Marketing involves advertisements in a newspaper, radio, or television describing a product that consumers can order by mail or telephone. This is how they sell books, household appliances, etc.

Across vending machines sell a wide variety of goods: cigarettes, soft drinks, sweets, newspapers, hot drinks. Vending machines provide the possibility of round-the-clock sales and self-service. Discount Order Service assists marginalized client groups - usually workers and employees of large organizations such as government agencies - who purchase at discounted prices from a selection of selected retailers. Peddle trade originates many centuries ago. At present, many enterprises and entrepreneurs are engaged in peddling on the principle of "every door".

Store affiliation . Retail establishments can be classified according to their ownership. Most of the stores are independent private enterprises. There are also other forms of ownership. Corporate network are two or more trading establishments owned or under common control. They sell goods of a similar range, have a common purchasing and marketing service. The success of enterprise networks is based on cost advantages through increased sales and reduced markups. The size of corporate networks allows you to purchase large quantities of goods, receiving maximum discounts. They are able to create effective structures, hire qualified managers and apply special techniques for sales forecasting, inventory management, pricing and sales promotion, and integrate wholesale and retail functions.

A kind of store concentration . This is the last principle of classification of retail establishments. There are four main types of concentration forms: 1) central business district. In every major city there is a central business district where department stores, specialty stores, banks and movie theaters are located. Smaller business districts are located closer to the outskirts; 2) regional shopping centers - a group of trade enterprises corresponding in their location, size and type of stores to the trade zone they serve. Large shopping areas may house several department stores; 3) district shopping centers may include dozens of stores serving up to 100 thousand people who live in the area; 4) neighborhood shopping malls, serving 5-20 thousand inhabitants. These are centers for the sale of consumer goods.

Wholesale is any activity of selling goods or services to those who purchase them for the purpose of resale or professional use. Wholesalers are divided into the following groups: a) merchant wholesalers; b) brokers and agents; c) wholesale departments and manufacturers' offices.

Functions of wholesalers. Wholesalers are used when they can more effectively perform the following functions: 1) sales and promotion- wholesalers help the manufacturer reach many small customers at a relatively low cost; 2) purchases and the formation of a product range- the wholesaler is able to pick up products, form the product range necessary for the client; 3) breaking large quantities of goods into smaller ones- wholesalers provide savings by purchasing goods in wagons and dividing them into small lots; 4) warehousing- wholesalers keep inventories, thereby helping to reduce the corresponding costs of the supplier and consumers; 5) transportation- wholesalers provide faster delivery of goods, as they are closer to customers than manufacturers; 6) financing- wholesalers finance their customers by providing them with a trade credit; 7) risk taking- taking ownership of the goods, incurring costs in connection with its theft, damage, deterioration and obsolescence, wholesalers take on part of the risk; eight) providing market information- wholesalers provide their suppliers and customers with information about the activities of competitors, new products, price dynamics; 9) management services and consulting services - The wholesaler often helps retailers by teaching their salespeople, participating in the organization of work, helping to organize accounting, inventory management.

Merchant wholesalers. It's independent commercial enterprises acquiring ownership of all goods with which they deal. V different areas activities they are called differently: wholesale firms, bases, distributors, trading houses. This large group wholesalers, they account for more than half of wholesale trade. Wholesalers-merchants are of two types - with a full and limited service cycle. Full service wholesalers provide services such as inventory storage, provision of salespeople, credit, delivery of goods, and management assistance. They are either wholesalers or distributors. Wholesale trade is mainly with retailers, providing them with a full range of services. Industrial goods distributors sell primarily to manufacturers rather than retailers. They offer customers services such as inventory storage, credit, and delivery of goods.

Limited service wholesalers provide far fewer services to their suppliers and customers. There are several types of wholesalers with a limited range of services: a) cash-on-delivery wholesaler, - deals with a limited range of hot goods, which he sells to small retailers with immediate payment for the purchase without exporting the purchased; b) wholesaler-traveler not only sells, but also delivers the goods to customers; v) wholesaler-organizer - works in industries that are characterized by bulk transportation of goods (such as raw materials, heavy equipment), while he does not deal with the goods directly, but, having received an order, finds a manufacturer who ships the goods to the buyer; d) about wholesaler-exporter- Serves retail stores by sending their goods to the store, equips layouts on the trading floor, sets prices, maintains inventory records and issues invoices to retailers for what is purchased; e) wholesaler-messenger - sends catalogs to customers (retailers, industrial production and different kind institutions), orders are sent by mail or delivered by road.

Brokers and agents . They differ from merchant wholesalers in two respects: they do not take ownership of the goods and they perform limited functions. Their main function is to facilitate the sale and purchase. For their services, they receive a commission of up to 5-10% of the selling price of the goods. Like merchant wholesalers, they specialize either in the type of product range they offer or in the type of customers they serve. The broker brings buyers and sellers together and helps them negotiate. The broker is paid by the one who engages him in mediation.

The agent represents the buyer or seller on a longer term basis. There are several types of agents. Manufacturers' agents represent two or more producers of complementary goods. They enter into formal agreements with each manufacturer regarding prices, territorial boundaries of activity, order processing, goods delivery services and commission rates. Authorized Sales Agents enter into contracts with manufacturers, obtaining the rights to sell products manufactured by one or another manufacturer. The Authorized Distributor acts as the manufacturer's sales department and has a significant influence on prices, terms and conditions of sale. Purchasing Agents usually form long-term relationships with their customers and purchase the necessary goods for them, often receiving these goods, checking their quality, organizing warehousing and subsequent delivery to the destination. Wholesalers-commission agents- these are agent firms that enter into physical possession of goods and independently conclude transactions for their sale. As a rule, they do not work on the basis of long-term agreements. The commission wholesaler delivers the goods to a certain market, sells the entire batch at the most favorable price, deducts his commissions and costs from the proceeds, and transfers the remaining amount to the manufacturer.

Wholesale offices and manufacturers' offices . These enterprises carry out wholesale trade without the involvement of independent wholesalers. There are two types of enterprises engaged in such activities: 1) sales departments and manufacturers' offices - keep inventory management, sales and promotion activities under tighter control. Large retailers often maintain their own buying offices in major market centers. The purchasing office plays a role similar to that of brokers or agents, but is structural unit the purchasing organization; 2) specialized wholesalers - a number of sectors of the economy have their own specialized wholesale organizations (for example, wholesale tank farms sell and deliver petroleum products petrol stations and business enterprises).

Wholesaler Marketing Solutions . Wholesalers must make a number of marketing decisions.

Target market decision . Wholesalers need to define their target market. A wholesaler can select a target group of customers based on size, type, severity of interest in services and other criteria. Within the target group, the wholesaler can identify the most profitable customers and establish closer relationships with them.

Decision on the product range and range of services . A wholesaler's "product" is the assortment he offers. Wholesalers are under pressure from the market to offer a full range of products and maintain stocks of goods for immediate delivery. But it comes at a cost. Wholesalers determine the number of assortment groups of goods, select only the most profitable product groups for themselves, decide which services help to achieve the closest relationship with customers.

Pricing decisionsshould be determined on the basis of marketing approaches, given that in a competitive environment, the net profit of wholesale trade may not reach even 2%.

Decision on incentive methods includes the choice of a combination of the main elements of the stimulation complex. Many wholesalers don't think much about promotion yet, so the use of advertising, sales promotion, propaganda, and personal selling techniques is often haphazard.

Decision on the location of the enterprise . Wholesalers usually locate their businesses in areas with low rents and low taxation, spend a minimum of

funds for the improvement of the territory and equipment of the premises. To combat rising costs, they are developing new methods and techniques of activity. One of these developments was the creation of automated warehouses controlled by computers.

Articles

The organization thinks about the type, nature and qualification of the transactions it carries out when it has to transfer one of its activities to the payment of UTII.

The peculiarity of the "imputation" is that it is introduced in relation to certain types of activities on the territory of municipal districts, urban districts and cities of federal significance. These types of activities are listed in paragraph 2 of article 346.26 of the Tax Code of the Russian Federation. Among them, retail trade carried out through shops and pavilions with a trading floor area of ​​​​not more than 150 square meters. m for each object of the organization of trade, and retail trade carried out through the objects of a stationary trading network that do not have trading floors, as well as objects of a non-stationary trading network. It is the sale of goods at retail that we will pay attention to in this article.

The main features of wholesale and retail trade

Wholesale and retail trade: looking for differences. The Tax Code of the Russian Federation does not contain a definition of wholesale trade. It is given in Article 2 federal law dated December 28, 2009 No. 381-FZ “On the basics of state regulation of trading activities in Russian Federation"(hereinafter - Law No. 381-FZ). So, wholesale trade a type of trading activity is recognized that is associated with the acquisition and sale of goods for use in entrepreneurial activities (including for resale) or for other purposes not related to personal, family, household and other similar use.

Let us remind you that “sponsors” are not VAT payers (except when goods are imported into the customs territory of the Russian Federation or when they perform the duties of a tax agent). Therefore, when selling goods, they do not have to draw up invoices.

However, firms purchasing goods in bulk, in order to take them into account and confirm the costs incurred, require consignment notes in form No. TORG-12 or waybills in form No. 1-T.

If the goods are purchased through an accountable person, then for its posting it may be sufficient to have a sales and cash receipt, as well as an advance report.

In both situations, there is a wholesale purchase. However, in the first case, it is issued according to the wholesale rules, and in the second - according to the rules retail. The question arises: is it a violation of the execution of a wholesale transaction with commodity and cash receipts?

Based on the established practice of organizing document circulation, the taxpayer does not violate the requirements of the law. When selling goods to a citizen - an accountable person, the seller is not obliged to conclude a supply contract with him and issue invoices, but he also has no right to refuse to sell due to the publicity of the transaction. Is it then worth it for the "sane" to recognize this transaction as wholesale and lose the right to apply a single tax on imputed income?

Unfortunately, it is difficult to answer this question. We believe that in this case one should proceed from the fact that a supply contract is not concluded between the buyer and the seller, the procedure for settlements and delivery times are not determined. And this is proof of the absence of a wholesale deal. Of course, the tax authorities can recognize the transaction as a wholesale transaction with any set or absence of documents, but for this they will have to submit their evidence to the arbitrators.

Thus, based on the specifics of the design of retail and wholesale transactions, we note that when conducting retail trade, a retail sale and purchase agreement is drawn up in the form of issuing a cash or sales receipt or other document confirming payment for the goods. The transaction is considered concluded at the time of transfer of these documents to the buyer. And when carrying out wholesale trade, it is necessary to conclude a supply agreement or another similar agreement, as well as issue invoices (when working on a general taxation regime), commodity or waybills. A wholesale transaction is considered concluded at the time of signing the contract. Keep in mind that you need to draw up accompanying documents in accordance with the qualifications of the legal relations of the participants in the transaction.

Purpose of purchasing goods

At the beginning of this article, we already mentioned that the Tax Code of the Russian Federation classifies as retail transactions formalized by retail sales contracts. The essence of this agreement is that the seller undertakes to transfer the goods to the buyer for personal, family, home or other use not related to entrepreneurial activity. That is, first of all, the "imputers" need to determine the goals for the further use of the goods, and then draw up either a retail sale contract or a supply contract.

If, for example, an individual purchased some thing for use at home or in the country, then we can say with confidence that a retail transaction has been completed. And if the company purchased goods for further resale, then this is already a wholesale transaction. But what about the purchase by an organization or individual entrepreneur of office equipment or furniture for use in the office?

Sharing the position of the financial department, the tax authorities in most cases can recognize the above transactions as wholesale. However, it should not be forgotten that the cited letters are advisory in nature and judges never rely on them in their conclusions. Based on judicial practice in similar cases, arbitrators are guided by the opinion of the Plenum of the Supreme Arbitration Court of the Russian Federation and often take the side of taxpayers (decrees of the Federal Antimonopoly Service of the North-Western District of December 21, 2007 No. A66-1015 / 2007, of October 17, 2008 No. A56-37983 / 2007 and Volga District dated 08/07/2008 No. A55-17831 / 07). Therefore, in the event of such disputes with the IFTS, the taxpayer will have to seek protection in court.

Thus, for the purpose of applying the taxation system in the form of UTII, retail can be recognized as the sale of goods for the purposes of personal, family and home use. individuals, as well as for office use by organizations and individual entrepreneurs. And wholesale - the sale of goods for purposes not related to personal, family and home use (more details on the comparison of wholesale and retail trade are presented in).

Situations from life and judicial practice

Wholesale and retail trade: looking for differences. Suppose an entrepreneur pays UTII when selling goods at retail through a store. After a camera check tax office charged him additional VAT on the amount of sale of goods of the organization. The inspectors substantiated the decision by the fact that this product was purchased by the company by bank transfer to ensure the conduct of production activities aimed at making a profit. In this situation, the Federal Antimonopoly Service of the North-Western District justified the actions of the individual entrepreneur and left the inspectorate's cassation appeal unsatisfied (Decree No. A66-1015 / 2007 of December 21, 2007). First of all, the court relied on the execution of the transaction and the further purpose of using the sold goods. It was found that:
- the goods were purchased at retail, as there was no contract for the supply. The buyer has paid for the goods on the basis of invoices issued, and the amount of VAT is not allocated in them;
- the inspectors did not prove that the buyer used the specified goods for resale or for the performance of work by third parties.

That is, for arbitrators in the matter of classifying a transaction as a wholesale or retail important criteria are the documentation and purpose of using the purchased goods. At the same time, the judges repeatedly emphasized that in tax code RF there is no provision that organizations and individual entrepreneurs Selling goods are obliged to control the subsequent use of goods. In addition, the servants of Themis do not pay attention to the form of payment and the parties to the transaction, since they do not consider them to be fundamental (Decree of the Federal Antimonopoly Service of the East Siberian District of June 25, 2008 No. A69-1122 / 06-3-6-9-5-03AP- 1436/07-F02-2733/08).

Many UTII payers are interested in the question: can transactions for the sale of goods to budgetary institutions under municipal and state contracts be recognized as retail?

However, we note that firms and merchants who tax income from the sale of goods to state employees under these contracts as part of the “imputation” have a chance to defend their position in court. So, for example, the Supreme Arbitration Court of the Russian Federation in the Determination of 08/06/2009 No. VAS-9435/09 took into account that food sold by an entrepreneur in pursuance of municipal contracts was not used by institutions for entrepreneurial activities and was purchased from a UTII payer selling goods at retail. Under such circumstances, the courts came to the conclusion that there were no grounds for charging additional taxes to the merchant on common system taxation. The Federal Antimonopoly Service of the West Siberian District also recognized the sale of goods for own needs as retail budget institutions(Resolution No. А81-1989/2009 dated January 20, 2010).

Three nuances

So, we found out that, firstly, the main differences between wholesale and retail are:
- Documentation of the transaction;
- the purpose of further use of the goods by the buyer.

Wholesale trade is characterized by commercial use (for example, further resale of goods). Wherein documentation The transaction will be the conclusion of a supply contract, the execution of invoices and the issuance of invoices.

Retail sale aims to sell goods for personal, family and household needs. It also includes the sale of goods to organizations and entrepreneurs for use in the office. The fact of a retail transaction is confirmed by the issuance to the buyer of a sales or cash receipt or other document confirming payment for the goods.

Secondly, the quantity of goods sold, the status of the buyer, as well as the settlement procedure do not matter in the qualification of transactions.

Thirdly, the tax legislation does not impose on sellers the obligation to control further use goods. Only a court can refute the fact of selling goods at retail, of course, if the tax authorities provide convincing evidence.

See the articles “If the “vmenenshchik” issued an invoice” // Vmenenka, 2009, No. 6 and “Payers of UTII and invoices: compatibility test” // Vmenenka, 2009, No. 11.

Whatever definitions for the concept of "trade" are printed in "smart books", in fact it is always the exchange of some goods for money or an appropriate amount of other goods in order to obtain benefits. Today it is both an independent branch of the economy, which ensures the movement of goods from the producer to the consumer, and the type economic activity, which is an intermediary service and includes whole line related processes, such as direct customer service, delivery of goods, their storage and preparation for sale, etc. But, most importantly, trade is, on the one hand, a significant source of tax revenues, and on the other hand, the most important social and political factor , which means that state attention to this area is inevitable and tangible. Especially in our country.

Russia, having passed a difficult path from the respected merchants of the 1st (richest), 2nd and 3rd guild, through, who had a special position in the era of socialist scarcity, the workers of Soviet trade, despised by all speculators and traders to spontaneous "shuttle traders", came eventually in our time to a more or less civilized market. However, the legislation in this area is still so imperfect that it would seem a simple question - what is the difference between wholesale trade and retail trade, can make even an experienced accountant "spread the tree".

In terms of simple common sense, wholesale- this is trade in consignments of goods, and retail - respectively, the sale of goods by the piece. It follows from this that wholesale is an intermediary between the manufacturer and retail, and retail, in turn, serves the demand of the end consumer. Thus, retail prices are formed from the purchase prices that the manufacturer sets, plus the trade margin. In all civilized countries, the approach is exactly the same. In Russia, it also underlies pricing and the "philosophy" of trade, but with significant legislative variations.

They relate mainly to the civil law sphere and, of course, to taxation. Retail regulated by Article 492 of the Civil Code of the Russian Federation "Contract of Retail Purchase and Sale". In particular, it states: “Under a retail sale and purchase agreement, a seller engaged in entrepreneurial activities for the sale of goods at retail undertakes to transfer to the buyer goods intended for personal, family, home or other use not related to entrepreneurial activity.” The definition of wholesale trade was found in Art. 2 of the Federal Law of December 28, 2009 N 381-FZ: “Wholesale trade is a type of trading activity associated with the purchase and sale of goods for use in business activities (including for resale) or for other purposes not related to personal, family , household and other similar use. Hence, the defining role of such a concept as “the purpose of acquiring goods” arises, and its quantity is not taken into account at all. In the case of a purchase by a private person of a whole batch of any product for personal needs, such an operation will be considered retail! If the product is purchased entity to ensure its activities, then the sale of even one ballpoint pen from the point of view of Russian legislation will be a wholesale transaction.

Accordingly, the design of such sales is also different. For retail sales, a cash or sales receipt is sufficient. For wholesale, supply contracts, invoices, cash receipt orders, etc. are required. Considering that it is not the responsibility of the seller to find out the purpose of purchasing goods, it turns out that in Russia all trade transactions with individuals are retail, and with entrepreneurs or legal entities - wholesale. And it does not depend on the quantity of the purchased goods!

Tax legislation has gone even further. When registering an enterprise, the application must indicate the types of economic activity that the organization or entrepreneur will be engaged in. The all-Russian classifier of types of economic activity (OKVED) describes in detail all possible types trade, but - with a clear division into wholesale and retail. A production that officially sells wholesale cannot sell its goods at retail - this will be considered a violation and fraught with a fine. A retail trade enterprise, located, for example, on UTII loses its right to an imputed tax in wholesale transactions, since this special regime applies only to activities related to retail. Of course, it is not forbidden to indicate both types of classification, but this will complicate accounting, reporting and taxation.

Nevertheless, market relations dictate their own laws, and in the field of pricing, factors such as the purpose of purchasing goods or the execution of a transaction, as well as the status of the buyer, have no effect on the result. The manufacturer releases goods at certain prices, based solely on considerations of their profits, as well as the volume and frequency of purchases of products by a specific buyer. The more often and more a partner buys, the more profitable contracts are concluded with him, and he can count on a bigger discount. In retail, it is similar - regular or large customers are offered lower prices almost everywhere, discount cards and other bonuses designed to attract and retain a client. Trade is trade - the price is the price, and this is called wholesale or retail, it is important only to the fiscal authorities!

Retail(retail, English retail) - the sale of goods to the final consumer (individual). Moreover, it does not matter at all how exactly the goods or services are sold (by the method of personal sale, by mail, by phone or through a vending machine), and also 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 system are not subject to further resale (in accordance with the 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 Consumer Rights Protection Law.

Federal Law No. 381-FZ of December 28, 2009 (as amended on December 23, 2010) "On the Fundamentals of State Regulation of 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 their use in personal, family, household and other purposes not related to entrepreneurial 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 the concept of a retail store format. This is a set of characteristics inherent in any type of store. These characteristics are:

Sales floor area

Number of commodity items

Customer service level

Product placement technology

Wholesale trade uses supply contracts, retail - retail sales contracts. 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. At the same time, you are not obliged to set the purpose of the purchase either at the time of the sale or after it.

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

If a person came to you and showed a certificate of registration as a PBOYUL, then the goods are not being bought for personal use. It will be wholesale.

If a person came to you and showed a power of attorney from a legal entity, then the goods are not being bought 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 buyers to be large consumers of goods. Wholesale is an intermediary between the manufacturer and the retailer. Participates in the acceleration of commodity circulation, synchronization of 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 the goods are sold not for final use, but for the needs of the business (for resale or for use in production). However, it is worth noting that when a wholesaler (legal entity or entrepreneur) sells a product to a wholesale buyer (entrepreneur or organization), the wholesaler cannot know exactly what the product will be used for. For example, a budget library buys a notebook - this notebook can be used both for resale if the library has a retail outlet (that is, used for business activities), and for final consumption - for example, given to a librarian. Libraries are institutions that are not created a priori for profit, they are simply allowed to conduct entrepreneurial activities if there is a desire and opportunity. If the notebook was given to the librarian, then this is final consumption, and the sale of the notebook was not a wholesale trade.