Supermax Distributor Wholesale Services means those commercial trading services provided to another distribution company. The terms and conditions of the wholesale service may be addressed in a sales/purchase agreement reached between the two distribution providers or the other participating company.
Historically, relatively few manufacturers have sold their products directly to retailers or consumers. Wholesale distributors provide that liaison, buying large quantities of products from manufacturers, storing them and then supplying them to retailers and other businesses. This enables manufacturers to focus on designing, building and marketing their products without investing in extensive sales efforts or managing relationships with a large number of small retailers. Wholesalers often stock a wide range of products, which makes life simpler for retailers because they can obtain a broad variety of goods without the added complexity of working with many different suppliers.
Wholesale distribution plays a significant role in the economy, accounting for more than 400,000 establishments with combined sales of about $9 trillion in the U.S. alone, according to a First Research report. Wholesale distributors are also experiencing rapid change due to a number of factors: new competition, the growth of ecommerce and rising customer expectations, among them.
Wholesalers operate as middlemen between product manufacturers and retailers or other businesses. They make a profit by buying products in bulk at a discount and reselling them in smaller quantities at a higher price to individual retailers. Many distributors specialize in specific industry sectors or product categories and build up a great deal of valuable industry expertise. This helps them provide value to their suppliers and customers, while distinguishing themselves from competitors.
Some industries have several levels of distribution, with larger wholesale distributors focusing on supplying smaller, regional or specialist distributors. Some wholesalers also act as suppliers of raw materials to manufacturers, while some have their own products brand.