The wholesaler is a middle link in the distribution chain between the producer of goods and the retail store in which the goods are sold. Because no producer could possibly contact all the retail outlets or industries that use his or her products and no retail store manager has the time to contact all his or her suppliers individually, the wholesaler provides a valuable service to both segments of the marketplace.
The largest number of wholesalers is merchant wholesalers who buy merchandise outright, warehouse the merchandise until needed, and then sell to retail outlets. They employ salespeople to call on retail customers, extend credit to customers, and lend money to suppliers in the form of prepaid orders.
The second largest group in wholesaling is manufacturer's agents. These are independent businesspeople who contract with a manufacturer to sell a specific product or group of products, usually in a specific geographic area. A manufacturer's agent usually represents several manufacturers and sells to retail stores, local distributors, industrial concerns, and institutions. If the business is large enough, the agent may employ additional sales personnel. An industrial distributor is a wholesaler who handles one or more products of only one manufacturer.
Merchandise brokers may represent either the buyer or seller in a wholesale transaction. The broker, however, does not buy or take direct responsibility for the goods being sold but acts as the agent of either the buyer or seller. Merchandise brokers work mainly in a few fields-food and grocery specialties, fresh fruits and vegetables, piece goods, cotton, grain, livestock, and petroleum products.
Commission merchants usually deal in agricultural products. They take possession of, but not tide to, the merchandise. They may store it, transport it, and condition it for market (inspect, weigh, and grade it) before finding a buyer. They charge a commission for their services as a part of the final selling price.
Auction companies are wholesalers who sell a client's product at a public auction. Most sales of this nature are in tobacco, fresh fruits and vegetables, livestock, floor coverings, furs and skins, jewelry, and furniture.
Related jobs are retail buyer, retail store manager, manufacturer's sales representative, import/export worker, and sales manager.
Places of Employment and Working Conditions
Some wholesalers, especially the largest and best known, are in large cities such as Chicago, Kansas City, Los Angeles, New York, and St. Louis. The others are located throughout the United States, many of them in small cities and towns.
Wholesalers, especially those dealing in perishable or seasonal goods, run the risk of sudden financial loss. They must have a secure financial base to carry them over lean periods or unexpected losses.
Qualifications, Education, and Training
Good judgment, business and management skills, experience as a buyer or salesperson, and an ability to deal with people are all necessary.
There are no specific education requirements for this field. The largest wholesalers, however, usually require experience or training in business administration, sales and marketing, retailing, or a particular technical area such as electrical products or other industrial fields.
Potential and Advancement
The best job opportunities for beginners are with smaller wholesalers, while persons with appropriate college education can often start in management-level positions with large wholesalers. The Bureau of Labor Statistics estimates that the field will grow by 7 percent between 2014 and 2024.
Income
Income varies greatly depending on the size of the business, but overall, the median salary for wholesalers was $59,080 in 2015, according to the Bureau of Labor Statistics.
