what are wholesalers

A wholesaler is a person or corporation that sells large quantities of items to retailers or other professional enterprises that are not end-users. Wholesalers purchase goods from manufacturers in bulk at a discount and sell them to retailers, providing cost savings to retailers when they buy in bulk from the wholesaler. Wholesalers are the intermediary in the supply chain, buying goods in large quantities that attract discounts and store them in warehouses before selling them on to retailers and businesses. They frequently physically assemble, sort, and grade goods in large lots, break-bulk, repack, and redistribute in smaller lots. There are different types of wholesalers, including merchant wholesalers, general merchandise wholesalers, and direct marketing wholesalers. The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs.