Wholesalers buy products in bulk straight from the manufacturers. They operate out of large warehouses and can store a lot of products at one time. The wholesalers then sell the products to stores and retailers. They in turn sell the products to the consumer after a markup of the price.
Manufacturers prefer to sell their products directly to wholesalers so that they don't have to deal with distribution. It is a lot easier and more money savvy for them to just sell directly to wholesalers.
Wholesalers will generally sell as many or as few products needed by retailers and have a low or no minimum order requirement. That makes it easy for the small business owner, ebay seller or a retailer just starting out.
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