The wholesaler then sells the products in smaller quantities at a markup to retailers.
However, the wholesale price is still lower than what the retailer will charge consumers. This allows the retailer to make a profit while also passing on some of the wholesale discounts to consumers.
Recently, it has become drastically easier to reach buy email database end customers with online stores and digital marketing, cutting the need for some wholesalers to use retail partners to sell their goods.
This model doesn’t technically fit under the definition of wholesaling but it has most of the same benefits while cutting out another middle man. The downside is that you have to do the marketing and sales work yourself.
Wholesalers may focus on a specific product category, such as electronics or apparel, or offer a wide selection of goods. They provide vital distribution and logistics services like warehousing, delivery, and inventory management for retailers. Wholesalers sometimes also offer marketing guidance, sales support, and product expertise.
