What Does a Wholesaler Do?

According to the dictionary, the definition of 'wholesale' is:

Wholesale – noun pronunciation: who-le-sale. 1. Trade in which large quantities of goods purchased from producers and importers are distributed and resold in smaller quantities to retailers and bulk consumers.

This definition makes it clear that a wholesaler never works alone. The essence of wholesaling is buying in bulk, reselling, and building and maintaining a network.

To understand what 'wholesale' entails, it’s important to know what it contrasts with: retail. Retail refers to the direct sale of goods to consumers. This includes physical stores such as clothing shops and supermarkets. However, in recent years, the sale of goods has increasingly moved from physical stores to the internet. Online stores, such as webshops, also fall under retail.

Without wholesalers, there would be no retailers. Retailers purchase goods from wholesalers. Typically, products are bought in large quantities from wholesalers, allowing retailers to benefit from lower prices than if they bought individual items. Wholesalers, in turn, also purchase goods. Often, a wholesaler specialises in a particular product or area. While one wholesaler may focus on DIY materials, another might specialise in Christmas decorations. There are also wholesalers that offer a broad range of products. The target audience varies: some wholesalers sell exclusively to a specific type of business, while others make their products available to everyone.

But where do the goods from wholesalers come from? This varies by business. Many wholesalers in the Netherlands buy their products directly from manufacturers. Purchasing large quantities often results in significant discounts. However, wholesalers can also buy from resellers. This can include surplus stock, leftovers, mixed pallets, products with old packaging, items nearing expiration, and outdated collections.

Anyone can buy and sell bulk items, but not everyone is a successful wholesaler. The key to successful wholesaling is networking. For example, Partijgroothandel.nl distinguishes itself by being internationally active. Through its extensive network, Partijgroothandel.nl sells surplus stock to other businesses both within and outside the market area.