For Entrepreneurs that are in the world of retail, “Bulk Purchasing” and “Wholesaling,” are terms used quite common. You may also hear, “buying in bulk” and “wholesale buyer.” However, the terms are often confused with one another.
Let’s take a look into the difference between bulk purchasing vs wholesaling. Understanding the difference between the two will bring clarity, eliminating confusion.
Bulk Purchasing simply means to purchase in large volumes, for a lower product price.
Whereas wholesale is specifically buying directly from the supplier rather than a shop.
Both are beneficial to business owners in sales. Small business owners such as restaurant, convenient store and beauty salon owners, usually buy in bulk, but as their business grow, it becomes more beneficial to cut-out the middleman and become a wholesale buyer allowing better deals to be negotiated with the company. On the other hand, if you are a small vender of niche items such as bicycles, books, etc. it may also be financially beneficial to manufacture your own product and become a supplier to wholesalers. In addition, dealing directly with a wholesaler reduces interactions with bad suppliers.
Wholesalers can either buy products from manufacturers or factories or they can represent them. The wholesalers that do not represent a manufacturer or factory must purchase in large volumes to receive discounted prices. They then make money by selling their products individually or in bulk to retailers for more than what they have paid and the retailers then resell the items at market price for a profit.
There are also wholesale retail stores that for a membership fee, you can take advantage of the company’s wholesale prices.
The top 5 public retail wholesalers in the United States:
Bwanaz is a California based company has been in the wholesaler industry since 2017
Alibaba is one of the world’s biggest wholesale marketplaces since its launch in 1999
Costco was launched in 1983 and this dominant global wholesaler has over 770 outlets worldwide.
Michaels is a Texas based wholesale company that is actually the oldest wholesaler company on this list, it has been open since 1973
Importers Direct Wholesale Company is a spirits and beverage company established in Los Angeles in 1998 and built by brand name wine, spirits and beverages from around the world.
Written By David K. Bradly @dbrad_theshow
