Who are wholesalers in the context of merchandise sales?

Wholesalers play a crucial role in the distribution channel of merchandise sales by acting as intermediaries between manufacturers and retailers. They purchase large quantities of goods from manufacturers, which allows them to buy at lower prices due to volume discounts. Once they acquire these products, wholesalers then resell them to retailers at a markup, providing retailers with the inventory needed to supply their customers.

This process is essential for ensuring that retailers can operate without holding large amounts of inventory directly from manufacturers. Wholesalers often carry a diverse array of products, making it easier for retailers to stock their stores and meet consumer demand efficiently. By serving as a buffer in the supply chain, wholesalers enhance efficiency in distribution and help to stabilize product availability in the marketplace.