Wholesale Market

The term wholesale market is used to define a market that sells goods to the retailer. The wholesaler receives large quantities of goods from a manufacturer and the goods are then distributed to the stores where they are sold to the consumers. In this process, the wholesaler is generally able to gain a better price from the manufacturer because it buys large quantities of goods as compared to an individual retailer. The wholesaler thus acts as a middleman, brokering deals between businesses. In a wholesale market, large quantities of goods are reassembled, sorted, and then repackaged before selling them in smaller lots. Wholesaling is a step in the supply chain where various companies like suppliers, manufacturers and retailers are involved. The retailers purchase goods from the wholesalers and then the products are sold at a higher price to cover costs and the general profits. In the banking system, a wholesaler can be the sponsor of a mutual fund or even act as an underwriter in a new issue.

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Edited and Updated 31st May 2014

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