Wholesale Merchandise

Written by Ava Grzegorczyk
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Wholesale Merchandise Process

Wholesaling is an intermediate step in the process of distributing goods. Generally, wholesalers sell wholesale merchandise in bulk quantities, much, much more than an individual would purchase. They usually sell to retailers who then sell single units of the merchandise. Wholesalers often operate from a warehouse, often using a small office within the warehouse to conduct business.

Some wholesalers sell goods directly to vendors, for example. Others broker sales between manufacturers or other wholesalers and buyers. Wholesalers can also be drop shippers who take orders from vendors to ship goods to individuals who have ordered from the vendor and who paid for the goods in advance.

Wholesale Merchandise Options

The goods that wholesalers usually move are called merchandise. Again, for the most part, merchandise is sold in bulk to retail stores or other vendors who will then sell to individuals. The merchandise can be anything from tiny widgets to dog food to major appliances or farm produce.

There is, however, another option for wholesalers. Today, many wholesalers work with online vendors who advertise merchandise on websites and who can get hundreds of orders in just a few hours. The wholesaler maintains an inventory of the products the vendor sells. The vendor, who receives payment in advance from individual customers, places an order with the wholesaler who then processes, packs, and ships the order to the individual. This procedure is very effective in supporting small online businesses because it benefits everyone in the chain, from the wholesaler to the vendor to the customer.

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