Wholesalers specialize in commercial transactions, as firms provide bulk sales to institutional, industrial, wholesale and retail clients. As a result, wholesalers are not usually organized to serve the general public. Instead, firms typically operate from a warehouse or office that is not designed nor located to solicit a high volume of walk-in traffic.
The wholesaling process is an intermediate step in the distribution of merchandise. Customers are initially reached by telephone, specialized advertising or in-person marketing. Follow-up orders are either vendor-initiated or client-initiated, and generally depend on previous sales or order history. Wholesaling normally denotes large volume sales as products are generally supplied to commercial operators, including institutional, industrial, wholesale and retail clients. However, some items may be sold in single units. These items include capital or durable non-consumer goods used for commercial purposes, such as farm machinery, medium and heavy duty trucks and other industrial equipment.
This sector comprises three main types of wholesalers:
LARG Industry Reports
Los Angeles Research Group provides 71 industry reports detailing the Wholesale Trade sector. Each report contains detailed information on output, employment, enterprises, establishments, assets, liabilities and profitability. LARG’s industry reports also provide in-depth information on market share concentrations, business structure (e.g., corporations, sole-proprietorships, partnerships), key economic indicators, supply chain data, debt ratios and new entrant trends, including survivor rates (i.e., percentage of new businesses that last longer than five years).
In addition to LARG’s standardized report information, LARG’s industry reports in the Wholesale Trade sector also provide specialized statistics, including detailed information on customers, inventories, commissions and employee functions. For more information on a particular industry, please click on the appropriate industry below.
This sector comprises firms that primarily sell merchandise in bulk to businesses and other organizations. Wholesalers sell or arrange the purchase or sale of three types of merchandise: goods sold to retailers or other wholesalers, capital or durable non-consumer goods and raw materials or supplies used in production.