Definition of Wholesaler | What is Wholesaler

Concept and Meaning of  Wholesaler

The wholesaler (or wholesale) is one who sells, buys, or distributes in large quantities. The concept differs from the concept of retailer, which is the trade/trader whose activity is carried out for sale at retail.
Examples: "I go from the wholesaler buy paper party plates',"If you want to save money, you can buy non-perishable food from a wholesaler","the gentleman from the shoe shop told me that wholesalers had not yet sent new models."
Generally, the wholesaler is not in direct contact with the consumer. His most common role within the supply chain is to be the link between the producer or manufacturer and the retailer.
This, however, may vary. Some wholesalers sell directly to consumers, who must purchase a minimum amount to have access at a special price. In addition, there are producers that sell their products to final consumers, avoiding passage through a wholesale distributor (wholesaler).
We can analyze a hypothetical case in the distribution of maize. This product is grown in fields and is sold by the ton to a wholesale distributor. Buys it, in turn, the production in bulk (large quantities) and, then, he sold it to the retailer. It is a dealer who sells corn to consumers.
In each of these stages of the distribution chain, the price of corn increases. The farmer can sell its production to the wholesaler at a price of $ 2 per kilogram. The wholesaler, in turn, sells to the retailer to $ 3 per kilo while the retailer sells corn to the final consumer to 3.8 dollars per kilo.

Published for educational purposes