Who are the typical customers of wholesalers?

Wholesalers primarily operate within the supply chain to serve as intermediaries who purchase large quantities of goods from manufacturers and then sell those goods in smaller quantities to various types of businesses. Retailers are the typical customers of wholesalers because they purchase products for resale directly to the end consumers.

Retailers benefit from wholesalers by obtaining products without having to buy in bulk directly from manufacturers, which helps them manage inventory and reduces their operational costs. This relationship is foundational to the retail supply chain, as wholesalers provide a variety of products, often at lower prices, allowing retailers to offer competitive pricing to their customers.

Manufacturers typically deal directly with wholesalers rather than being customers of them. Distributors may also interact with wholesalers in the supply chain, but their role is often more aligned with transporting goods rather than purchasing for retail. Consumers are the end users of products and do not typically engage directly with wholesalers, as their purchasing needs are met through retail outlets. Thus, retailers represent the primary customer base for wholesalers in the distribution and retail marketplace.