Distributor & Wholesale Online Guide

How Wholesale Works

Jennifer Kelly

Many people don’t quite understand the whole concept of buying wholesale, and how this is possible. The concept of buying wholesale is actually very simple. Wholesale is essentially a fancy word for cheap. When a supplier purchases many of the same products, this is what is known as “bulk.” When a supplier (the store) purchases in bulk, the supplier receives a discount for buying so many of the same products. Do not let this confuse you, though. Wholesale and bulk are two completely different things.

When you hear someone say they bought something at wholesale, they are referring to the fact they bought the product for the amount the supplier buys the product for. You might be wondering how the supplier makes money. In comes the bulk rate. The supplier is still making a small profit off the wholesale item, because they got such a discount for that product, they could sell the item at wholesale prices.

Buying wholesale is a perfect way to save money. Many wholesale stores or websites will charge a membership fee. For example, Sam’s Club or Costco are wholesale stores. Both are wholesale clubs, and members must pay an annual fee to reap the benefits of cheaper prices. In most cases, paying the membership fee will still save you money.

If you were to search for wholesale online, the same thing applies. Many wholesale sites require you pay a membership fee. This is to ensure they can keep costs down, but also most wholesale sites or stores are private. The reason behind making members pay is because how can you a member rightly say they belong to a private membership club (or saving club) if EVERYONE can take advantage of the discounts? There would then be no