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Wholesaling or distributing is the sale of goods or
merchandise Merchandising is any practice which contributes to the sale of products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set ...
to retailers; to
industrial Industrial may also refer to: Industry * Industrial archaeology, the study of the history of the industry * Industrial engineering, engineering dealing with the optimization of complex industrial processes or systems * Industrial loan company, a f ...
, commercial,
institutional Institutions, according to Samuel P. Huntington, are "stable, valued, recurring patterns of behavior". Institutions can refer to mechanisms which govern the behavior Behavior (American English) or behaviour (British English; American and ...
or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In general, it is the sale of
goods In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant ...
in
bulk Bulk can refer to: Industry * Bulk cargo * Bulk liquids * Bulk mail * Bulk material handling * Bulk pack, packaged bulk materials/products * Bulk purchasing * Baking * Bulk fermentation, the period after mixing when dough is left alone to fermen ...
to anyone other than a standard consumer. Wholesaling is the selling of merchandise to anyone either a person or an organization other than the end consumer of that merchandise. Wholesaling, the selling of goods in large quantities but at lower prices for selling the goods at a profit. Wholesaling is buying goods in bulk quantity at a discounted rate and selling to the retailer at a higher price. According to the
United Nations Statistics Division The United Nations Statistics Division (UNSD), formerly the United Nations Statistical Office, serves under the United Nations Department of Economic and Social Affairs (DESA) as the central mechanism within the Secretariat of the United Nations t ...
, ''wholesale'' is the
resale A reseller is a company A company, abbreviated as co., is a legal entity In law, a legal person is any person A person (plural people or persons) is a being that has certain capacities or attributes such as reason, morality, conscious ...
of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an
agent Agent may refer to: Espionage, investigation, and law *, spies or intelligence officers * Law of agency, laws involving a person authorized to act on behalf of another ** Agent of record, a person with a contractual agreement with an insuran ...
or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort, and grade goods in large lots, break-bulk, repack, and redistribute in smaller lots. While wholesalers of most products usually operate from independent premises,
wholesale marketing The consumption and production of marketed food are spatially separated. Production is primarily in rural areas while consumption is mainly in urban areas. Agricultural marketing is the process that overcomes this separation, allowing produce to be ...
for foodstuffs can take place at specific wholesale markets where all traders are congregated. Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products. However, with the advent of the internet and
e-procurement E-procurement (electronic procurement Procurement is the process of finding and agreeing to terms, and acquiring goods, Service (economics), services, or works from an external source, often via a tendering or competitive bidding process. Procur ...

e-procurement
there is an increasing number of wholesalers located nearer to the manufacturers in China,
Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia East Asia is the eastern region of Asia Asia () is Earth's largest and most populous continent, located primarily in the Eastern Hemisphere, Eastern and N ...

Taiwan
, and Southeast Asia. In the banking industry "wholesale" usually refers to
wholesale banking Wholesale banking is the provision of services by bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly ...
, providing tailored services to large customers, in contrast with
retail banking Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank A bank is a financial institution Financial institutions, otherwise known as banking institutions, are corporation A co ...
, providing standardized services to large numbers of smaller customers.


Taxes

Often, in the United States, wholesalers are not required to charge their buyers
sales tax A sales tax is a tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelate ...
, if the buyer has a resale license in the state the wholesaler is located. Out-of-state buyers are not charged sale tax by wholesalers.


Direct selling

The alternative to selling wholesale to distributors or retailers is to sell retail either through company-owned stores or
online In computer technology and telecommunications Telecommunication is the transmission of information by various types of technologies over , radio, , or other systems. It has its origin in the desire of humans for communication over a dista ...

online
. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers. Direct selling is a business model wherein sellers sell the goods directly to the end customer.


Top wholesalers in U.S

Top U.S wholesalers according to csnews report in 2012.


See also

*
Business-to-business Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when: * A business is sourcing materials for their production process for output (e.g., ...
*
Cash and carry (wholesale) Cash and Carry (or "Inspect and Pay") wholesale represents a type of operation within the wholesale sector. Overview The main features of cash and carry are summarized best by the following definitions: *Cash and carry is a form of trade in whic ...
*
Distribution (marketing) Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user who needs it. This can be done directly by the producer or service p ...
*
Jobbing houseJobber, in merchandising Merchandising is any practice which contributes to the sale of products to a retail consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), ...
*
Supply chain In commerce, a supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product (business), product or service (business), service to a consumer. Supply chain activities involve the transfo ...

Supply chain
*
Supply network A supply network is a pattern of Time, temporal and spatial processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of Product (business), products. It comprises the ...


References

{{Authority control Freight transport Distribution (marketing)