The main functions of wholesale companies

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Therefore, there is often another link in the chain of manufacturer - seller - consumer - wholesale buyer. He helps the manufacturer to sell the products, and the retailer - to provide a wide range of goods on a stable basis.

Wholesalers make a profit due to the difference between the purchase and sale price of the goods. They bear the risks that retailers and manufacturers try to protect themselves from. This is a difficult business, in which there is no place for frivolous and irresponsible people.

How wholesale trade works
Wholesalers usually cooperate with several large suppliers - manufacturers and distributors. Their key feature is a wide range of products. The average wholesaler has more than 5,000 items.

The more items a wholesale company can offer to retailers, the higher mail ceo its competitiveness. Products may belong to different categories that are not related to each other. Among the suppliers there are often manufacturers from different countries. Sometimes wholesalers offer products of their own production, among other things.


Search for goods and create a database of reliable suppliers. Wholesalers find manufacturers, establish cooperation, and prepare all necessary documents, including customs declarations.
Placement and storage of goods in their own warehouses. The received products must be checked, distributed, and suitable storage conditions must be organized.
Sale of the assortment. The company supplies goods by pre-order to regular customers and also looks for new buyers.
Thus, both manufacturers and sellers benefit from cooperation with wholesalers.

For the former, it allows them not to be scattered among many retail companies, but to do business with several proven partners. Wholesale orders are the key to stability and predictability of deliveries.