Wholesale facts for kids
Wholesale is when businesses sell a very large amount of products to other businesses. Think of it like buying in bulk! These other businesses are usually retailers, which are stores that then sell smaller amounts of those products to regular people, called consumers.
A business that does wholesale is called a wholesaler. Wholesalers often buy products directly from where they are made, like a factory or a farm. They might then sort, grade, or repackage these products into smaller groups. After that, they sell them to retailers. Wholesalers usually have big buildings called warehouses to store all these goods. Sometimes, many food wholesalers gather in one big place, like a large market.
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What is Wholesale?
Wholesale is a key part of how products get from where they are made to the shops you visit. Instead of selling one item at a time, wholesalers sell many items together. This helps factories and farms sell their products quickly. It also helps retailers get the products they need for their stores.
How Wholesalers Work
Wholesalers do more than just buy and sell. They often:
- Buy in bulk: They purchase huge amounts of goods directly from producers.
- Store products: They keep the goods safe in large warehouses.
- Sort and grade: They might check the quality of products and group them.
- Repackage: They can divide large shipments into smaller, more manageable lots for retailers.
- Distribute: They deliver the products to different retail stores.
This process makes it easier for retailers to get a variety of products without having to deal with many different factories.
Where Wholesalers Operate
In the past, wholesalers often set up their businesses close to the retail shops they supplied. This made it easier to deliver goods. However, things are changing.
The Rise of Online Wholesale
With more and more sales happening online, many wholesalers are now setting up closer to the factories. For example, some are now found near factories in countries like China and Taiwan. This helps them get products faster and often at a lower cost. They can then ship products directly to retailers or even sometimes straight to consumers who buy in bulk online.
Wholesale in Banking
The idea of "wholesale" isn't just for physical products. In banking, the term "wholesale banking" means providing financial services to very large companies. This is different from "retail banking," which offers services to smaller businesses or individual people, like you and your family.
Images for kids
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Headquarters of Eurocash Group, a Polish wholesaler
See also
In Spanish: Mayorista para niños
