Trade · 6 pages · 12 min
How a wholesaler earns a place
A wholesaler is paid for breaking bulk, holding stock, and reaching many buyers.
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From the opening
A wholesaler buys from producers in large lots and sells in smaller lots to retailers or other businesses that do not want to deal with every producer. The margin between those prices is payment for aggregation, storage, delivery, credit, and the risk of holding goods that may not sell through. The opening covers bulk becomes mixed small orders, inventory sits between the parties, and one route carries many brands.
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Inside
- Bulk becomes mixed small orders
- Inventory sits between the parties
- One route carries many brands
- Direct buyers can bypass it
- Where the idea stops applying
- A distinction worth keeping
Sources
- Wholesale breaking of bulk
- Distribution margin for logistics services