Wholesaling
The selling of products or items to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers (wholesale firms) and associated subsidiary services is considered to be the practise of wholesaling or distributing. In general, it refers to the act of selling items in large quantities to any entity, whether it a person or an organisation, other than the final consumer of that particular product. The term "wholesaling" refers to the practise of purchasing products in large quantities, often directly from the manufacturer or supplier, at a price that is lower than the retail price, and then reselling those products to retailers at the retail price. After then, the shop makes a profit by selling the items to the ultimate customer at an increased price.
According to the United Nations Statistics Division, wholesale is the resale of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers. Additionally, wholesale can involve acting as an agent or broker in the purchasing of merchandise for such persons or companies, or the selling of merchandise to such individuals or businesses. Wholesalers physically assemble, sift, and grade items in huge quantities on a regular basis. They then routinely break-bulk, repack, and redistribute the goods in smaller amounts. Foodstuffs may be marketed at wholesale in particular wholesale marketplaces, in contrast to the majority of other items, which are often wholesaled by individuals who run their own businesses from separate locations.
Historically, wholesalers were located closer to the markets that they served than they were to the source from whence they obtained the items. On the other hand, with the introduction of the internet and e-procurement, there has been a rise in the number of wholesalers that are situated in close proximity to the manufacturers in China, Taiwan, and Southeast Asia. Wholesalers' capacity to maintain competitive transaction costs is a significant factor in determining the size of the profit margins they can maintain.
In the context of the banking business, the term "wholesale" most often refers to wholesale banking, which offers individualised services to big clients in contrast to retail banking, which offers standardised services to a large number of consumers with a lower average transaction size.
When it comes to real estate, wholesaling refers to the process of entering into a contract to acquire property and then selling or otherwise transferring that contract to an investor.