What is a wholesaler's primary function?

A wholesaler's primary function is to purchase large quantities of products from manufacturers or suppliers and then break them into smaller units for distribution. This process enables wholesalers to meet the needs of retailers or other businesses that require smaller quantities of goods for resale. By acting as an intermediary, wholesalers can negotiate better prices due to the large volume of goods they buy, thereby benefiting both suppliers and retailers. This function is crucial in the supply chain as it helps streamline the distribution of products, ensuring that retailers have access to the inventory they need without having to purchase and store large quantities of goods themselves.

In contrast, selling directly to final consumers is typically the role of retailers, not wholesalers. Although some wholesalers might offer additional services such as advertising support or logistics management, these are not their primary functions. Their main focus remains on the bulk purchasing and subsequent distribution of goods.