To understand what wholesale is and how it works, it is worth noting that there are three different meanings, each with value in its own context. Generally speaking, wholesale means the sale of products in bulk at low cost to stores and businesses, rather than directly to consumers.

In addition to this generic definition, one of the meanings of wholesale is the acquisition of all or part of a product directly from the manufacturer. ‍

Secondly, there is the more common definition of wholesale: B2B (or business-to-business) sales, in which the wholesaler acts as an intermediary between the manufacturer and the retailer. The way these intermediaries (also known as brokers) operate is by moving merchandise from the manufacturer to the retailer.

Wholesaling consists of a variety of business models that are based on the principle that the retailer offers a variety of products, sells them in volume, and makes a profit by dividing large quantities into smaller purchases.