Wholesale refers to two different business models. The first one is a business that buys products in bulk, at a smaller price, directly from the manufacturer and then sells them to the end customer. Wholesale can also refer to businesses that produce their own products and then sell them in bulk to retailers which then sell to the end customer.
What is wholesale pricing?
Wholesale pricing refers to the price a manufacturer charges a wholesale to bulk order from them. The price can change depending on the number of products. For example, buying 500 products at $2000 means you pay $4/product. However, wholesale prices can increase to $400 for 50 products. This means that you will pay $8/product.
What is a wholesaler?
A wholesaler is a middleman, the one that buys in bulk from the producer or manufacturer and sells the product to retailers. The wholesaler usually doesn’t sell to the end customer, only to another retailer that finally sells to the end-user.
Apart from breaking bulk orders and allowing retailers to purchase less, wholesalers can also be the ones that assemble products.