What role do wholesalers play in the distribution of products?

Wholesalers play a crucial role in the distribution of products by acting as intermediaries between manufacturers and other businesses. They typically buy large quantities of goods from manufacturers and then sell them to retailers or other intermediaries. This allows retailers to order smaller quantities without having to deal directly with multiple manufacturers, which can be more efficient and cost-effective.

By handling bulk purchasing and storage, wholesalers facilitate the effective movement of products through the distribution channel, helping to ensure that retailers have the inventory they need to meet consumer demand. Additionally, wholesalers often provide valuable services, such as breaking bulk shipments into smaller lots, offering credit to retailers, and providing logistical support. Their role is vital in creating a streamlined supply chain that benefits both manufacturers and retailers.