What is a Wholesale Distributor?
Wholesale distributors purchase products in bulk directly from the manufacturer, store and distribute products them to consumers in smaller amounts. Wholesale distributors make it easier for retailers to get the products they need by providing low prices while not requiring manufacturer contracts or extremely large purchases. By purchasing products in extremely large quantities directly from the manufacturers or suppliers, and reselling them to retailers, wholesale distributors can pass on savings and convenience. Wholesale distributors have the resources to purchase in large quantity. They will frequently store their products in large warehouses and sell them on demand in smaller quantities and at significant savings to the reseller.
Some wholesale distributors sell only by the pallet. They may order hundreds or even thousands of pallets of a product from a manufacturer and then sell the product by the pallet to the reseller. This approach saves on sorting, packing, and handling costs as the pallets never have to be opened. This type of distribution doesn't leave many options for the reseller and may actually be more expensive than purchasing directly from the manufacturer. Other wholesale distributors will separate and sort the products they buy from manufacturers and sell them in lesser quantities like by the case, crate or carton and even mix and match inventory. This type of distribution is commonly referred to as bulk breaking and gives resellers more flexibility over the products and quantities they buy. It is important to find a wholesaler that sells products in the quantities you are looking for so that you can get the appropriate amount for your business, no matter the size.
Wholesale distributors do more than just act as the middleman by purchasing from manufacturers and reselling those goods to retailers. They also maintain inventories of commonly sold goods so retailers do not need large warehouses in which to store extra goods. This simple action practically eliminates the need for a retailer to maintain a large inventory at significant cost. Many wholesale distributors will also supply retailers with a line of credit and research and report to both retailers and manufacturers about current or changing market conditions. Distributors often absorb costs due to damage as well, saving retailers money in the long run.
Wholesale distributors seek out good business partnerships just like retailers do. Wholesale distributors usually identify their target market of retailers and resellers and target their marketing to attract the customers that will be the most interested in their products. Just as retailers need a loyal customer base to turn a profit, wholesale distributors need a reliable network of retailers and resellers to buy from them. Good wholesale distributors work hard to find profitable customers and to maintain a positive relationship that is mutually beneficial. Quality wholesale distributors also strive to maintain sufficient levels of stock to fulfill retailers' needs and help retailers keep up with emerging market trends by looking for new products to offer to retailers.
Although there is a price difference between what wholesale distributors pay for goods from manufacturers and what they charge retailers, those markup percentages are still a significant savings for retailers. Retailers are still able to save money by avoiding to the hassle of making bulk orders direct from the manufacturer and then storing excess inventory. There are thousands of wholesale distributors that specialize in every type of merchandise imaginable, so if you need product to sell, a wholesale distributor is a good place to go.
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