Legal Definitions - wholesaler

A wholesaler is a business that purchases products in significant volumes directly from manufacturers or producers. Their primary role is to then sell these goods in smaller, but still substantial, quantities to other businesses, such as retailers, who will then sell them to individual consumers. Wholesalers act as an intermediary in the supply chain, facilitating the movement of goods from production to the retail market without directly engaging with the end-user.

• Example 1: A large food distribution company buys entire truckloads of fresh produce, dairy products, and packaged goods directly from farms and food manufacturers. They then sort and repackage these items, selling them by the crate or case to independent grocery stores, restaurants, and institutional kitchens.

  Explanation: The food distribution company is the wholesaler because it acquires goods in massive quantities from producers and resells them in smaller, but still bulk, amounts to businesses (like grocery stores and restaurants) that ultimately serve the end consumer.

• Example 2: A company specializes in importing various types of office supplies, such as paper, pens, and printer cartridges, directly from overseas factories. They then distribute these items in bulk to office supply retail chains, stationery shops, and large corporate purchasing departments across the country.

  Explanation: This importing company functions as a wholesaler by purchasing vast quantities of products from manufacturers and then supplying them to other businesses (retailers and corporate clients) who will either use them internally or sell them to individual customers.

• Example 3: A fashion distributor acquires thousands of units of seasonal apparel, like designer handbags and shoes, directly from various fashion houses and factories. They then sell these collections in bundles or by the dozen to boutique clothing stores, department stores, and online fashion retailers.

  Explanation: The fashion distributor is acting as a wholesaler by buying large volumes of goods from manufacturers and then supplying them to retailers who will market and sell the individual items to the general public.