Guide to bulk and wholesale buying

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: 
 

• Buying Efficiencies: When businesses find wholesaler(s) that provide reliable inventory and sharp pricing, they cuts out the need to interact with manufacturers who typically have  no available inventory on hand and often have long lead times for production. 
• Cheaper Pricing: Because wholesalers are buying large quantities at discounted rates, they are able to pass savings to retailers. In the example above, the retailer is saving $5 per unit by buying from a wholesaler versus going direct to the manufacturer with their small quantity order. 
• Smaller Orders: Retailers are able to purchase smaller quantities from wholesalers allowing them to effectively meet demand, manage inventory levels, and reduce storage costs.
   

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.  
 

• Quantity Discounts: Save even more when you buy multiple units at once. We make it easy for our selling partners to list up to five pricing tiers for their products. For even larger quantities, customers can request pricing from all selling partners who offer a specific product. Paper towels
• Recurring Delivery: This tool offers you the convenience of automatic deliveries in addition to competitive pricing and free standard shipping. There are no commitments, obligations, or fees, and you can cancel a recurring delivery at any time. Food service prep containers
   

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.