Legal Definitions - wholesale dealer

A wholesale dealer is a business or individual that sells products in large quantities to other businesses, rather than directly to individual consumers. These purchasing businesses, often retailers, then resell the products to their own customers. The primary characteristic of a wholesale dealer is their role as an intermediary in the supply chain, facilitating the movement of goods from manufacturers or producers to retail outlets.

Here are some examples to illustrate this concept:

• Imagine a company named "Global Produce Distributors". This company purchases entire truckloads of fresh fruits and vegetables directly from farms. Instead of setting up a roadside stand to sell individual apples or bunches of bananas to shoppers, Global Produce Distributors sells these large quantities to supermarket chains, restaurant supply companies, and local grocery stores. These businesses then break down the bulk orders and sell smaller portions to their end-consumer customers.

  This illustrates a wholesale dealer because Global Produce Distributors sells goods (fruits and vegetables) in large volumes (truckloads) to other businesses (supermarkets, restaurants, grocery stores) that will then sell them to individual consumers. They do not sell directly to the public.

• Consider "TechLink Solutions," a company that specializes in importing computer components like hard drives, RAM modules, and graphics cards from various manufacturers overseas. TechLink Solutions buys these components by the thousands. They then sell batches of hundreds of units to computer assembly companies, electronics repair shops, and large corporate IT departments. These buyers either incorporate the components into new systems, use them for repairs, or manage their own internal hardware needs.

  TechLink Solutions acts as a wholesale dealer by selling high volumes of computer components to other businesses (assembly companies, repair shops, IT departments) that either use them in their own products or services, or resell them to their clients. They do not sell a single hard drive to an individual upgrading their home computer.

• Picture "Fashion Forward Fabrics," a textile company that manufactures various types of fabric, such as cotton blends, silk, and denim. Fashion Forward Fabrics produces these materials in massive rolls, often hundreds of yards long. They do not sell fabric by the yard to individuals for home sewing projects. Instead, they sell these large rolls to clothing manufacturers, upholstery companies, and interior design firms that use the fabric to create garments, furniture, or custom draperies for their own customers.

  Here, Fashion Forward Fabrics is a wholesale dealer because it sells its products (fabric) in significant bulk quantities (large rolls) to other businesses (clothing manufacturers, upholstery companies, design firms) who then use or resell the material to their end-users. They are not serving the individual consumer directly.