Merchant wholesaler

Definition

A merchant wholesaler is a business entity that buys goods in bulk from manufacturers and sells them, usually in smaller quantities, to retailers or other businesses, but not directly to consumers. They play a significant role in the distribution process by ensuring that products move efficiently from production to the retail shelves.

Related terms

Inventory Management:

The practice of ordering, storing, tracking, and controlling inventory to ensure that a business has enough stock to meet customer demand without overstocking.

Supply Chain:

A system comprising all individuals, organizations, resources, activities, and technology involved in the creation and sale of a product from the delivery of raw materials from suppliers to manufacturer through to its eventual delivery to the end user.

Retailer: An entity that buys products from wholesalers or directly from manufacturers and sells them directly to consumers