Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business, or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers.
Different kinds of practical conditions make for many kinds of business. Usually two kinds of businesses are defined in trading.
Importers or wholesalers maintain a stock and deliver products to shops or large end customers. They work in a large geographical area, while their customers, the shops, work in smaller areas and often in just a small neighborhood.
Today "trading company" mainly refers to global B2B traders, highly specialized in one goods category and with a strong logistic organization. Changes in practical conditions such as faster distribution, computing and modern marketing have led to changes in their business models.
The Winding-up and Restructuring Act, an act of the Parliament of Canada, uses the following definition:
Japan has a special class of "general trading companies" (sogo shosha), large and highly diversified businesses that trade in a wide range of goods and services.
