asked in Business+Finance by (2 points) 1 1 3
Can anyone tell about what is wholesale distributors?
replied by (183 points) 1 5 17
Wholesale distributors are those who buy in bulk and sell on a lower price than retailers. Most of the times only retailers visit wholesalers to buy from them as they can get that at a lesser price and can further sell that to make some profit from it. 
replied by (2 points) 1 4
Wholesale distributors buy in bulk from one or more manufacturer. Normally the selling price set by wholesale distributors are lower compared to distributors or retailers.

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6 Answers

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answered by Patron (1,914 points) 3 6 16
Wholesale distributors are traders or merchants who buy the things directly from the manufacturers, producers and farmers in the case of agricultural products, and sell the same to retailers for eventual sale to general public. The difference between the rate at which they get the things from the manufacturers and the rate at which they supply it to retailers is their earnings or profit.

Similarly, the retailers sell the same in small quantities as required by the general public. Here again, the difference between the rate at which the retailer gets the goods from the wholesaler and the rate at which he sells it to his customers becomes his earnings or profit. It may vary for both of them based on the demand of a particular item.
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answered by VISIONARY (9,008 points) 7 17 71
Wholesale distributors are those that have the intention of buying goods in bulk and would be distributing the products in bits to retailers and consumers. Wholesale distributors don't want to buy in bits since it will cheaper to buy in bulk than in bits and selling to retailer will net them more profit.

The whole essence of wholesale distribution is to make fast sale since some even sell almost at company price so that they can have quick turnover and sales for more purchases.A lot of people like going into wholesale business since one might not encounter much losses because of quick sales,one would  have distributed goods bought to the retailers especially perishable products and if its going bad it will be in the hands of the retailers.
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answered by LEGEND (6,072 points) 7 22 49
Wholesale distributors are key compoents of chain of supply of goods that play important roles in connecting the producer indirectly to the final consumer. Basically, they are those that buy goods in large quantities and delivering them to the relailers before the relailer would get them to the consumers. Their functions are very strategic in the supply chain as they can access goods at a relatively inexpensive amount from the producer compare to the relailers and the consumers. And it's due to this advantage they have that allow them to buy goods in bulk.
Another significant edge they have is the negotiating power, which they leverage on in dealing directly with the producers of goods. This negotiating power makes them to be a strong force in controlling the prize of these goods. They would be the ones that would indirectly influence the prize the finally consumers are to get these goods.
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answered by ELITE (3,221 points) 5 12 23
Just as the name implies, wholesale distributors are person's or company that deal in the purchase of whole or bulk products and delivers them in whole or bulk too.

Wholesale distributors play a very vital role in the line of purchase and supply. They pose as the middle agents between the producers and sellers of product to the final consumers. They are responsible for making sure products gets to merchants from the producers.

People often make the mistake of thinking wholesale distribution is the same as merchant sellers. The earlier do not deal with consumers, they work on supplies coming directly from the producer. While the later is responsible for selling in bulk to retailers who then sell to consumers. That's the major difference between both parties in the chain of supply.
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answered by ELITE (3,008 points) 4 13 28
In the process of distribution, the wholesale distributor is someone that we get after the agent in the channel of distribution. One thing about the distribution channel is that they facilitate the movement of goods from the producer down to the consumer. A wholesale assist the producer in buying the goods in bulks and that is a good way for the manufacturer to focus on going into mass production.

When a producer brings new products into the market, he always make use of the wholesale distributor in getting these new goods known to the market. I am still looking at how the manufacturer can really survive without the help of the wholesale distributor and I can't really see since they are the core player in ensuring that the products move deeper into the market.
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answered by (11 points) 1 2

Distribution is the process of making a product available for the consumer or business for its needs. Wholesale distributor are those deals with the distribution of different kinds of products under varied brand. They are usually maintain the huge network so that the chain of distribution can be maintained with great efficiency. Some of the companies work as wholesale distributors. Distributor provides products or services to the supplier or retailers. They have setup the large distribution network. Some of the logistics and FMCG distributor companies work as  wholesale distributor. Product brands contact the distribution companies for making their product distributed smoothly and conveniently in the market. They are supply products to the leading retailers and supermarket channels. Hope it useful...

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