wholesaler

A wholesaler is a business or person that purchases goods in large quantities from manufacturers or other suppliers and resells them, typically in smaller lots, to retailers, other wholesalers, or institutions, rather than directly to the general public. Wholesalers operate at an intermediate stage in the supply chain and often perform distribution functions that connect producers with downstream buyers.

Wholesalers provide value by consolidating, storing, and breaking bulk; offering a range of products from multiple producers; providing financing, credit terms, and handling logistics; and supplying market information to manufacturers and retailers. They may also offer services such as packaging, labeling, or product customization, depending on their market focus.

There are several types of wholesalers. Merchant wholesalers take title to goods and sell on their own account, often providing extensive services. Cash-and-carry wholesalers sell mainly to retailers for cash and require minimal service. Wholesalers’ agents and brokers do not take ownership of goods but arrange sales between producers and buyers. Manufacturers’ sales branches and offices are owned by the manufacturers themselves and operate as a direct channel to retailers and other customers. Drop shippers, another category, arrange shipment directly from producers to customers without handling the merchandise in their own warehouse.

In modern supply chains, wholesalers complement retailers and manufacturers by expanding distribution reach, supporting small or regional buyers, and enabling just-in-time inventory practices. The growth of online marketplaces and direct-to-consumer models has influenced wholesale models, leading to hybrid arrangements, digital platforms, and data-driven pricing.