There are many different types of wholesale businesses. Let’s take a quick look at six of them:
Merchant wholesalers. This type of wholesaler purchases and stores large quantities of products then resells smaller quantities for a markup.
Sales and distribution for manufacturers. This type of wholesaler isn’t technically a wholesaler. This is when manufacturers act as their own wholesalers by creating a distribution afghanistan telegram screening department within the company. They sell their own products to other wholesale suppliers and retail businesses.
Discount wholesalers. This type of wholesaler focuses on buying and selling significantly discounted stock. These goods are discontinued lines, returned or refurbished goods, or inventory liquidation.
Dropship wholesalers. Again, this type of wholesaler isn’t technically a wholesaler. When online retailers make a sale, their distributor or wholesaler will ship the product directly to the consumer. In this way, the wholesaler is more like a retail partner. You can find tons of dropshipping wholesalers on platforms like DSers.
Brokers. Brokers don’t actually move or buy products. Instead, they simply arrange deals between manufacturers and retailers. So this type of wholesaler doesn’t make money from markups—instead, they make money from fees and commissions.
Online wholesalers. This type of wholesaler sells its products in bulk online, as opposed to more traditional channels such as trade shows.