Wholesaling refers to selling products or services in bulk quantities enabling distributors and retailers to resell or incorporate them into final offerings for end consumers. Wholesaling provides access to wider B2C distribution channels versus direct sales.
Negotiating wholesale pricing affords room for channel partners to profitably resell and absorbs margin versus retail prices. However, successful wholesale models require aligning incentives, training resellers, providing sales collateral, and actively nurturing these strategic relationships beyond fulfilling orders.
For vendors, wholesale expands market reach leveraging external resources. But resale contacts reduce control over customer experience. Weighing brand control versus expanded footprint guides wholesaling strategy. Fostering channel communications and win-win relationships helps maximize mutual success.