Wholesaler
Wholesalers purchase and store large volumes of goods, usually from producers, but occasionally from other types of business, including other wholesalers.
Breaking Bulk Purchases into Smaller Lots
A producer would usually need to make goods in large production runs, in order to make the products economically. Many
retailers, especially smaller ones, would not have the
financial resources or storage to purchase these large volumes. Instead, a wholesaler will purchase these goods from the
producer and store and sell them in smaller lots.
Specialization
Wholesalers generally specialise in just one or two product areas. There are some, however, that sell a wide range of goods and aim to supply all requirements to small general stores and even to some specialist stores. These wholesalers are attractive to
retailers who prefer not to buy their goods from multiple locations.
Large Retailers
Large retailers will often purchase directly from producers but they may also top up their stocks using wholesalers. Other retailers – the very largest – have virtually no trading relationship with wholesalers, apart from those covering specialist product groups or low volume imports.
Consumer | Customer | Importer | Packaging Supplier | Producer | Retailer | Shipper | Wholesaler
History | Marketing | The Supply Chain | Types of Retail Outlet
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