What’s the added value of wholesalers and retailers?

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Goods flow:

Manufacturers -> wholesalers -> retailers -> consumers.

But I imagine it’s the same goods that’s being transferred through all these steps. So, what’s the value added here between all these steps?

For example, why don’t retailers directly buy from manufacturers?

Why don’t consumers directly buy from wholesalers or even the manufacturers themselves?

In: Economics

6 Answers

Anonymous 0 Comments

Most consumers can’t buy wholesale because to be able to purchase wholesale you need a business or tax id and a regular consumer wouldn’t have that unless they have a business. Most retailers don’t buy straight from manufacturers because they either don’t know where to find them or they have a Minimum order quantity that is too high for the retailer to meet/buy

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