Wholesale is a business model in which a company buys goods in bulk, usually directly from manufacturers, at a discounted rate, and resells them at a markup to retailers, other businesses, or other wholesalers rather than directly to the end consumer. Wholesalers commonly assemble, sort, grade, break down large lots and repackage goods into smaller lots suited to their buyers' needs, acting as an intermediary that consolidates supply from multiple sources and lets retailers reach consumers more efficiently than if they dealt with many individual manufacturers directly.
Facts
Core MechanismWholesaling sells goods in bulk, typically bought directly from the manufacturer at a discounted rate, to retailers, other businesses or other wholesalers rather than to the final end consumer. The wholesaler's own margin depends on buying at a lower per-unit cost than a retailer could negotiate alone and on keeping its own transaction costs competitive; the retailer then resells the same goods individually to consumers at a markup. 1 Cross-Tradition Connections
Associated With
Wholesale is the intermediary tier that buys goods in bulk from manufacturers and resells them to the retail industry, letting retailers reach consumers without dealing with many individual manufacturers directly.
Wholesale distribution, moving goods in bulk from producers to retailers or other businesses, depends fundamentally on shipping and logistics industry infrastructure.
Sources
1. Wikipedia, Wholesaling
WikipediaWikipedia: Wholesaling, lead paragraphQuote, Wikipedia: Wholesaling, lead paragraph
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.
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