Wholesaling

What is 'Wholesaling'

The sale and distribution of goods to users other than end consumers. Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to industrial, commercial and institutional users. A wholesaler can act as a middleman, brokering deals between these businesses. Wholesaling often occurs when large quantities of merchandise are reassembled, sorted, then repackage, and distribute in smaller lots.


In banking, the term wholesaling refers to services that are designed for large, institutional clients, including real estate developers, pension funds and large corporations, as opposed to retail banking which provides services to standard, individual customers. A wholesaler can also be a sponsor of a mutual fund, or act as an underwriter in a new issue.

BREAKING DOWN 'Wholesaling'

Wholesaling is one step on the supply chain, which includes various companies like suppliers, manufacturers and retailers. Retailers and other users purchase goods from wholesalers, and then sell the products at a higher price to cover costs and generate profits. Supply chain management (SCM) was developed in the 1980s to address the need to maximize efficiency in the business processes involved in moving goods from original suppliers to end users.

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RELATED FAQS
  1. What is the goal of real estate wholesaling?

    Invest in real estate with minimal capital through wholesaling. There is no remodeling or carrying costs. Rather, a quick ... Read Answer >>
  2. What is the average debt/equity ratio of companies in the wholesale sector?

    Learn about the standard debt-to-equity ratios in the wholesale sector, and discover some of the many subindustries in the ... Read Answer >>
  3. What economic indicators are important for investing in the wholesale sector?

    Understand what economic indicators are important for people looking to invest in the wholesale sector. Learn how a company ... Read Answer >>
  4. What is the average annual dividend yield of companies in the wholesale sector?

    Find out more about the wholesale sector, what the dividend yield measures and the average annual dividend yield for companies ... Read Answer >>
  5. What metrics can be used to evaluate companies in the wholesale sector?

    Find out which metrics are used for the analysis and valuation of wholesale distributors, and learn what makes a metric appropriate ... Read Answer >>
  6. What is the average price-to-earnings ratio in the wholesale sector?

    Find out more about the wholesale sector and the simple average of the price-to-earnings ratios of companies in the sector. Read Answer >>
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