The process for getting products to consumers can often involve multiple sources and a sometimes-complex web of touchpoints known as a supply chain. Manufacturers, wholesalers, distributors, and retailers play important roles in this process. Like other businesses involved in supply chains, end goal is to move product from one point to another.
A common question we get is, “What is the difference between wholesale and bulk?” They are actually quite different but tend to be confused. Let’s dive in and review the differences.
What is wholesale?
The term wholesale refers to a type of business that purchases large quantities of product directly from a manufacturer and/or distributor, stores the product in their own warehouse, then sell the product in smaller quantities to retailers or consumers. A wholesaler’s ability to store large quantities of product is key to securing discounted rates from a manufacturer. It is cost prohibitive for manufacturers to produce small quantities of product because the cost to start up their machines is the same for 100 units or 200,000. Wholesalers have the ability to meet demand from multiple customers at a time, making a profit on each sale.
Let’s consider an example:
A retailer orders 1,000 widgets and the manufacturer charges $15 per widget. A wholesaler orders 100,000 widgets and the manufacturer charges $5 per widget. The Wholesaler then sells the retailer 1,000 widgets for $10 per widget.
In the end the manufacturer, wholesaler, and retailer make a profit on each phase of the supply chain.
What is bulk buying?
Bulk buying refers to the purchase of multiple quantities of product in exchange for a lower price per unit. Retailers or consumers based on their need can make this type of purchase. Amazon, Amazon Business, and big-box stores are examples of where you can buy in bulk.
Benefits of buying from a wholesaler or in bulk
There are multiple benefits for you to consider when purchasing larger quantities:
Guide to buying in bulk with Amazon Business
Buying in bulk is easy with the tools Amazon Business customers have access to and the thousands of supplies available for purchase in bulk quantities. Here’s how bulk buying works.
Buy in bulk for resale
Are you looking to buy in bulk for the purposes of reselling? If so, we can help. Every week we work with over 2,500 resellers across brick and mortar and authorized resellers.
The needs of these resellers are similar to that of end users; broad selection, competitive pricing, and fast delivery. The typical process for resellers today involves repeating cycles of ordering supplies from distributors when the reseller is low or out of stock. Often times this process and the subsequent delivery of supplies can take a week or more.
With Amazon Business, resellers can streamline their process by simplifying the buying procedure and consolidating supplies and gaining access to the tools we’ve described above, like Quantity Discounts and Reoccurring Delivery. These features help resellers save time and money.
Start saving by buying in bulk for your business. Sign up today with Amazon Business.
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