Wholesale Industry
Sustainability Reports of companies in the wholesale industry.
A wholesale business purchases goods in large quantities from producers or manufacturers and resells them in bulk to retailers or other businesses. It serves as an intermediary that facilitates the distribution of products, typically specializing in either a single type of merchandise or a diverse assortment of goods. The primary aim of a wholesale business is to act as a pivotal distribution channel within the supply chain.
Wholesale business models can be categorized into three types:
- Merchant wholesalers – These entities establish direct relationships with suppliers to acquire substantial volumes of inventory, which they then store and sell to retailers, both online and in physical stores. They are known for their competitive pricing and storage capabilities.
- Agents or brokers – These individuals or agencies represent manufacturers that lack the resources or infrastructure to market their products independently. They act as the sales force for these suppliers and earn a commission based on sales volume.
- Manufacturing distributors – Some manufacturers are of a scale that allows them to conduct sales operations directly with consumers or other businesses online. When the sales division is distinct from production in terms of location and management, it may effectively function as a wholesale distributor within the broader organization.