Entrepreneurship and Small Business (ESB) Certification 2025 – 400 Free Practice Questions to Pass the Exam

The role of a wholesaler is primarily that of an intermediary in the supply chain, acting as a middleman between manufacturers and retailers. They purchase goods in large quantities directly from manufacturers and then sell those goods in smaller quantities to retailers, who in turn sell them to the end consumers. This process not only helps to reduce costs for retailers by allowing them to buy smaller amounts than they would order directly from manufacturers, but it also streamlines the distribution process. Wholesalers often have the logistical infrastructure to manage the storage and distribution of goods, which is essential for maintaining efficient supply chains.

While selling directly to consumers, creating products, or managing customer relationships can be functions associated with businesses, they do not typically describe the primary role of a wholesaler in the marketplace.