Wholesaler Definition

A wholesaler is a business or person that purchases goods in large quantities from manufacturers or distributors and sells them to retailers or other businesses, rather than to individual consumers. Wholesalers typically buy products in bulk and then sell them in smaller quantities to retailers or other businesses, who in turn sell the products to the end consumers.

Wholesalers act as intermediaries between manufacturers and retailers, providing a convenient and efficient way for retailers to purchase large quantities of goods at a discounted price. Wholesalers may specialize in a particular product or product category, or they may offer a wide range of products across multiple categories.

In addition to selling products, wholesalers may also provide additional services to their customers, such as product customization, marketing support, and logistics services like shipping and storage. The role of wholesalers in the supply chain can vary depending on the industry and market, but they play an important role in helping businesses to get the products they need to sell to their customers.


What is an example of a wholesaler?

An example of a wholesaler is Costco, which is a membership-only warehouse club that sells a wide variety of products in bulk quantities to both individual and business customers. Costco buys products directly from manufacturers and distributors, allowing them to sell products to their customers at a discounted price. They offer a wide range of products, including groceries, electronics, clothing, furniture, and more.

Another example of a wholesaler is Sysco, which is a foodservice distributor that supplies food and related products to restaurants, healthcare and educational facilities, and other foodservice providers. Sysco buys products from a variety of manufacturers and distributors and sells them to their customers at a discounted price, while also providing additional services such as menu planning, marketing support, and delivery logistics.

There are many other examples of wholesalers across a variety of industries, including clothing, electronics, automotive parts, and more.


What is a wholesaler vs retailer?

A wholesaler and a retailer are two different types of businesses that play different roles in the supply chain and serve different customer segments.

A wholesaler is a business that purchases goods in large quantities directly from manufacturers or distributors and sells them in smaller quantities to retailers or other businesses. Wholesalers typically sell products at a discounted price compared to the retail price, but they do not sell directly to consumers.

On the other hand, a retailer is a business that purchases goods from wholesalers or directly from manufacturers and sells them directly to consumers at a marked-up price. Retailers typically sell products in smaller quantities and provide a variety of services to their customers, such as product displays, marketing, and customer support.

In summary, a wholesaler buys products in bulk from manufacturers or distributors and sells them to retailers, while a retailer buys products from wholesalers or directly from manufacturers and sells them to individual consumers. The role of the wholesaler is to provide products to the retailer, while the role of the retailer is to provide products to the end consumer.

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