Wholesale refers to sales to businesses that purchase large quantities of products from a manufacturer or wholesaler. Such sales are typically made to commercial customers such as retail establishments, restaurants, hotels, large corporate companies, and other consumer goods sellers. Wholesale is generally characterized by the low unit price of wholesale products and the benefit of discounts for large quantities. Wholesale usually occurs between larger trading establishments and distribution companies.
Wholesale and retail are related and represent how the product moves between the manufacturer and the end consumer. Manufacturers can reach a large customer base by wholesaling their products to distributors and retailers. Retail businesses, on the other hand, reach the end user and make a profit by delivering products to the consumer.
These two sales methods play an important role in the business sector and play a major role in the functioning of consumer economies.
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