What is Wholesale Distribution? [Ultimate Guide 2022]

Wholesale distribution product carrier robot

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In this article, we are going to talk about wholesale distributors. Imagine a person or a company buy products in large quantities at a low price compared to the market and sell the products to people. The job that they do is called Wholesale Distribution. Wholesaler distributors are known as sales representatives for the producer. In the continue, you will become familiar with this topic comprehensively. So, if you are interested in this topic, don’t miss this article.


What Is a Wholesale Distributor?

A wholesale distributor is a company or person who buys products in bulk quantities and redistributes the products, most commonly to retailers. They usually connect directly to the product manufacturer. Generally, they have a distribution center or a warehouse. In the global supply chain, wholesale distributors act as a vital link. They distribute the majority of products between business partners around the globe. According to “The Future of Commerce”  website, until December 2020, around 5.68 million people have been working in the wholesale distribution industry in the United States. It is good to know those big consignments can be offered by Amazon FBA wholesale distributors.


What Is An Example of A Wholesale Distributor?

Let’s assume that a company like WholeBeans buys 100 D-link modems at the price of $70 from the suppliers, which has a $130 fee at Amazon. Now, WholeBeans sells the D-link modems to other people at $85, and these people also sell each D-link modem for $130 on Amazon. As this product is one of the top 0.3% best sellers of the computer & accessory category on Amazon, the retailers will sell it out quickly. Therefore, they will make a $28.89 profit or 34% ROI from selling each D-link modem.

The act of WholeBeans website is called wholesale distribution and WholeBeans is a wholesale distributor.


How Does Wholesale Distribution Work?

The most critical point in wholesale distribution is buying high-demand products at a low price. At first, a person or company should contact the manufacturer or product producer to provide the products.

Wholesale distribution assistants talking together

The main point is that not all of the persons can provide the products from the manufacturer, as usually, the manufacturers don’t sell their products in small quantity and you should buy a large amount of one product.


What Is The Difference Between a Distributor and Wholesaler?

Each company’s supply chain relies on distributors, wholesalers, or a combination of both of them. But often, it is overwhelming to understand what the distributor or the wholesaler does. The distributor’s role in the supply chain is to contact the manufacturer and another entity such as retailers. The distributors also can provide storage and logistical support for manufacturers. A vital job that distributors do is to keep the lines between the product producer and users operate. They can :

  • Enhance a company’s reach
  • Have a quick and real-time response
  • Create value-added package

Above all mentioned benefits for both the manufacturer and the user, distributors also reduce inventory and service burdens. 

On the other hand, wholesalers sell their products in bulk quantities to retailers so that they can have the advantage of lower prices rather than buying single items. Indeed, wholesalers don’t involve in the process of the actual manufacturing of a product. Instead of that, they focus on distribution. The primary purpose of the wholesalers is to satisfy the needs of the retailers. They don’t have any responsibility that the retailers would sell all the products.


 Is Amazon a Distributor?

Amazon is not a distributor. It is an online retailer. You can find tens of thousands of wholesale products in all types of sizes and quantities on Amazon business. As a retailer like a bookstore, Amazon makes a profit by selling products with a mark-up. Actually, Amazon is the biggest bookstore in sales terms in the United States. It works like this: bookstores buy the book from distributors at a discount. The price is usually 40 to 45 percent of the retail price. As their profit, the bookstore keeping 40 to 45 percent of the retail price when they sell the book for the total retail price.


What is WholeBeans?

We buy our products directly from the manufacturers or the leading distributor. We are then selling these products on the WholeBeans website at wholesale price, whether you want one or a hundred.

You can buy our products at a lower price than Amazon and other marketplaces. So if you need a product for yourself or want to sell something on Amazon, you can buy your requirements from us to earn profit from your sales. Besides, you don’t need to buy a large quantity of a product that may pile up. The minimum order quantity of WholeBeans is one!

Wholebeans banner

One of the values added of WholeBeans compared to other wholesalers is that we try to reduce the risk of not selling products; because we offer products with bestsellers rank below 1% on Amazon.

In addition, we can assure you that you can make a profit by buying the products from WholeBeans and resell them on Amazon or other platforms; Because we checks the price history of the products in the last 30-days in Amazon. The lowest selling prices in the previous 30-days shouldn’t be less than a specific value so that the products are reliably profitable.

These characters make WholeBeans a unique wholesaler among all companies.


Final Thought

In this article, you will learn about Wholesale Distribution. In wholesale distribution, the products which have significant demand will buy at a low price. They don’t have any relation with the product-producing process. On the other hand, they are distributors that can provide storage and have contact with manufacturers directly. As a distributor leader, WholeBeans offer you various products at a lower price than any other marketplace. There is no difference if you want one or hundreds of an item. You will buy the products at wholesale price and make a reasonable profit.

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