Wholesaling involves distribution selling from one organization to multiple others. As the wholesaler, they are sort of the intermediary organization between the big suppliers to the smaller retailers. The small retailers might not be able to purchase directly from the supplier since either they could not meet the minimum order required. Or, they lose out in price against big retailers that could negotiate a lower price for ordering greater quantities.
The wholesalers have the same purchasing power in quantities similar to the big retailers, thus bought purchasing the products at the discounted price. Afterward, they could pass the lower prices to the collective small retailers. Therefore, the small retailers are as price competitive against their large rivals.
This is also beneficial to the suppliers since it opens up an extra market opportunity for them. Wholesalers generally have access to hundreds of smaller retailers. If the supplier has a new product for sale, it will be so much easier to get the wholesalers to help them distribute said product to the hundreds of retailers. Wholesalers are the middle man that can reach out to these retailers. It is much more efficient to negotiate with the wholesalers who then supply the product to the retailers under their belt. With that said, retailers do not have to contact the suppliers directly every time a new product is up.
Thus, a wide range of retailers across the nation would promote the product, rather than the supplier contacting individual retailers at a time.
Fashion products cycle
Fashion products are probably one of the goods that benefit the most from wholesaling. Just like the process mentioned above, wholesalers could reach out to fashion producers with the latest collection for a volume discount. So the latest vogue is thus available to the local retailers within a short period of time. Everything’s is always in season that way.
In general, wholesalers would purchase back the unsold goods from the retailers. So once the season ended, it all goes back to the wholesalers. Retailers lose less money this way. Wholesalers then distribute them to the global market with a colder climate. As such supplier have a wider range of customers outside of their domestic market.
Women’s sweaters are seasonal, high fashion product; no one honestly would want to wear thick clothing during the summer. This is the part where wholesale women’s sweaters have an advantage. Wholesalers often have access to the international market, allowing the retailers to not only gain access to the foreign fashion line. Therefore, merchandises can always be updated at the minimum cost through wholesale women’s sweaters.