Business information > Company profiles > Wholesale Trade

Wholesale Trade

The wholesale trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing.

The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of goods for resale (i.e., goods sold to other wholesalers or retailers), capital or durable non-consumer goods, and raw and intermediate materials and supplies used in production.

Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships.

This sector comprises two main types of wholesalers: (1) merchant wholesalers that sell goods on their own account and business to business electronic markets, agents, and (2) brokers that arrange sales and purchases for others – generally for a commission or fee.

Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches, but not retail stores, maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products. Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services.

Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis, are known by many names: business-to-business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, and manufacturers' representatives. These establishments operate from offices and generally do not own or handle the goods they sell.

Although, in general, wholesaling normally denotes sales in large volumes, durable non-consumer goods may be sold in single units. Sales of capital or durable non-consumer goods used in the production of goods and services, such as farm machinery, medium and heavy duty trucks, and industrial machinery, are always included in wholesale trade.

Read less

Apparel, Piece Goods, and Notions Merchant Wholesalers

Chemical and Allied Products Merchant Wholesalers

Electrical and Electronic Goods Merchant Wholesalers

Farm Product and Raw Material Merchant Wholesalers

Furniture and Home Furnishing Merchant Wholesalers

Grocery and Related Product Merchant Wholesalers

Hardware and Plumbing and Heating Equipment and Supplies Merchant Wholesalers

Lumber and Other Construction Materials Merchant Wholesalers

Machinery, Equipment, and Supplies Merchant Wholesalers

Metal and Mineral (excluding Petroleum) Merchant Wholesalers

Miscellaneous Durable Goods Merchant Wholesalers

Miscellaneous Nondurable Goods Merchant Wholesalers

Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers

Paper and Paper Product Merchant Wholesalers

Petroleum and Petroleum Products Merchant Wholesalers

Professional and Commercial Equipment and Supplies Merchant Wholesalers

Wholesale Electronic Markets and Agents and Brokers

About us Contact us Terms and conditions Privacy policy

Arrive Prepared – our blog about business news and market research.