Wholesalers are individuals or groups that facilitate transactions with other groups both above and below them in the supply chain.

Wholesaling is the process whereby goods are bought for resale. The resold goods are used to make other products, or in business operations. The wholesaling process does not include the consumer, but it is a part of both the merchandising and the service industries.

All distribution channels require wholesaling duties even when there is no wholesaler in the distribution channel. For example, dentists provide services directly to their customers. They may buy gauze squares in bulk. Dentists don't sell the gauze squares to their customers, but they use them in their business operations.

Specialized types of wholesalers perform various tasks to address different needs within the market. 


Wholesalers can complete tasks efficiently by dealing with numerous products at once, and by buying in bulk. Risks are involved, but generally these risks make wholesalers very responsive to the needs of producers and retailers.

Wholesalers can improve exchange efficiency, or provide the specialized skills required to successfully complete the transactions involved in the exchange process.