Wholesaling
Candlefocus EditorThe process of wholesaling consists of three major parties: wholesalers, manufacturers, and retailers. First, a manufacturer produces a product. Then the wholesaler purchases this product in large quantities directly from the manufacturer and resells them to retailers in smaller quantities. After that, the retailers stock the products in their stores to be sold to the end customer.
Wholesalers do not only benefit retailers, but also manufacturers. Because wholesalers purchase goods in bulk directly from manufacturers, this eliminates a layer of costs associated with manufacturing and distributing to retailers which can in turn help to reduce prices of products. Companies often offer special discounts to wholesalers in order to encourage them to purchase large volumes of their products. This helps companies increase their production efficiency and reduce their costs across their supply chain.
Apart from cost savings, wholesalers also provide a variety of other services to their customers. They often offer promotional offers, create marketing materials and campaigns, and provide customer service and on-site services. Wholesalers also provide extra support to retailers by working with them to customize products to their store’s needs. They can also provide knowledgeable advice and insight on industry trends, helping retailers make informed decisions.
Wholesaling is an integral part of the supply chain, connecting suppliers, manufacturers, retailers, and end customers. By providing cost savings and a host of other services, wholesalers are an invaluable part of the business landscape and play a vital role in helping businesses succeed.