Wholesaling

Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services.[1] In general, it is the sale of goods to anyone other than a standard consumer. Wholesaling is the selling of merchandise to anyone either a person or an organization other than the end consumer of that merchandise.

Headquarters of Eurocash Group, a Polish wholesaler

According to the United Nations Statistics Division, wholesale is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.[2] While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.

Traditionally, wholesalers were closer to the markets they supplied than the source from which they got the products.[3] However, with the advent of the internet and e-procurement there are an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia.

In the banking industry "wholesale" usually refers to wholesale banking, providing tailored services to large customers, in contrast with retail banking, providing standardized services to large numbers of smaller customers.

Taxes

Often, in the United States, wholesalers are not required to charge their buyers sales tax, if the buyer has a resale license in the state the wholesaler is located. Out of state buyers are not charged sale tax by wholesalers.[4]

Direct selling

Main articles: Direct selling and Direct marketing

The alternative to selling wholesale to distributors or retailers is to sell retail[5] either through company-owned stores or online. Advantages include receiving a larger slice of the price paid by the consumer; disadvantages include difficulty in reaching consumers.[6]

Top wholesalers in U.S

Top U.S wholesalers according to csnews report in 2012.[7]

Ranking 2012	Company/ Headquarters	Latest FY (M$)	locations served	deliveries per week	% of sales to chain stores	% of sales to Indep.	# of warehouses	Warehouses (thousands Sq. feet)	full employee	sales per Sq. foot (thousands $)	sales per employee (thousands $)	sales per location (thousands $)	sales per delivery ($)
1	McLane Co.	27,300	39269	48682	96	4	20	10464	9079	2609	3007	695	561
2	Core-Mark Holding Co. Inc.	8,115	30000	–	50	50	28	–	5000	–	1623	271	–
3	Eby-Brown Co	4,500	21000	–	70	30	7	2250	2200	2000	2045	214	–
4	H.T. Hackney Co	4,000	20000	–	–	–	28	–	–	–	–	200	–
5	GSC Enterprises Inc.	1300	8000	6500	68	32	6	1676	1315	776	989	163	200
6	Farner-Bocken Co.	1200	–	–	50	50	1	450	930	2667	1290	–	–
7	Harold Levinson Associates Inc.	1200	15000	15000	10	90	1	550	475	2182	2526	80	80
8	Imperial/Harrison Super regional	1,025	2950	3120	64	36	4	379	447	2704	2293	347	329
9	Amcon Distributing Co.	1004	5000	–	–	–	6	601	–	1671	–	201	–
10	S. Abraham & Sons Inc.	939	3614	3079	58	42	2	440	477	2134	1969	260	306
11	Consumer Product Distributors inc.	926	3695	4185	44	56	4	300	574	3087	1613	251	221
12	Chambers & Owen Inc.	765	–	–	50	50	1	265	300	2887	2550	–	–
13	Liberty USA Inc.	700	1800	1650	70	30	1	150	250	4667	2800	389	424
14	Garber Bros. Inc.	695	2400	3100	60	40	1	200	246	3475	2825	290	244
15	J.T. Davenport & Sons Inc.	600	2000	–	70	30	2	211	–	2844	–	300	–
16	Cooper Booth Wholesale Co.	540	1750	1175	20	80	1	110	187	4909	2888	309	460
17	Atlantic Dominion Distributors	486	2100	1600	65	35	2	180	120	2700	4050	231	304
18	Tripifoods Inc.	458	2750	2970	92	8	1	250	210	1832	2181	167	154
19	Stephenson Wholesale Co. Inc.	405	3500	4533	35	65	202	292	2005	1387	116	89
20	Pine State Trading Co.	400	5000	–	55	45	5	246	–	1626	–	80	–
21	Harbor Wholesale Grocery Inc.	391	2500	1700	40	60	2	300	265	1303	1475	156	230
22	Southco Distributing Co.	343	1400	2200	45	55	1	225	180	1524	1906	245	156
23	Richmond-Master Distributors Inc.	300	1400	810	30	70	5	210	–	1429	–	214	370
24	Thomas & Howard Co. Inc.	250	1500	2300	47	53	3	300	300	833	833	167	109
25	Allen Brothers Wholesale Dist. Inc.	230	1358	930	33	67	1	65	72	3538	3194	169	247

See also

• Cash and carry (wholesale)
• Distribution (marketing)
• Jobbing house
• Supply chain
• Supply network
• Business-to-business

References

1. "WTO – accession : Protocols of accession for new members since 1995, including commitments in goods and services". www.wto.org. Archived from the original on 4 March 2018. Retrieved 8 May 2018.
2. "United Nations Statistics Division – Classifications Registry". unstats.un.org. Archived from the original on 21 March 2018. Retrieved 8 May 2018.
3. Chandler, A. D. (1994). Scale and scope The Dynamics of Industrial Capitalism. Cambridge, Massachusetts: Belknap Press of Harvard Univ. Press. p. 29.
4. Michael Gravette, wholesaler for 32 years.
5. "Als Lieferant mitmachen" (in German). eu-lieferanten.de. Archived from the original on 11 April 2013. Retrieved 9 April 2013.
6. Ian Mount (March 6, 2013). "Clothing Companies Trying to Find More Direct Paths to Customers". The New York Times. Archived from the original on March 7, 2013. Retrieved March 7, 2013.
7. "Archived copy" (PDF). Archived (PDF) from the original on 2013-06-26. Retrieved 2014-01-08.CS1 maint: archived copy as title (link)