=16pxThe functions of a trading company depend on the particular business sector it operates in, but generally include the following:
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[*]Purchasing goods from manufacturers
[*]Selling goods to companies and consumers
[*]Storing goods for sale
[*]Allocating goods in a retail chain
[*]Setting up storage facilities and points of sale
[*]Managing international trade operations
[*]Making logistical arrangements for the delivery of goods
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In general, the main function of a trading company is obtaining goods from manufacturers and delivering them to customers. In this regard, a trading company may undertake any tasks necessary to achieve that end. They may also be involved in negotiating and making use of land grants that allow a business to own, manage and develop a piece of real estate property, including land and buildings. Obviously, this is an additional possibility for a trading company as a legal entity, and not a major business function or task.Types of trading companiesThere are two primary types of trading companies:
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[*]B2B (Business-to-Business) Trading Company
[*]B2C (Business-to-Consumer) Trading Company
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=inheritB2B (Business-to-Business) Trading Company=inheritThe most extensive use of trading companies is as intermediary trading companies or B2B companies. These businesses usually 1) specialise in a certain range of products or services, which they purchase from suppliers or merchants; 2) broker the products or services (i.e. add value and commission to the transaction); and 3) coordinate the logistics of delivering these products/services to the purchasing company (i.e. arranging the delivery and providing their own or affiliated transportation services).=inheritB2C (Business-to-Consumer) Trading Company=inheritB2C refers to selling products or services to the end client, and so the final destination of the trading company’s goods is usually a shop.