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
> Why don’t consumers directly buy from wholesalers or even the manufacturers themselves?
There are several reasons why consumers don’t typically buy directly from wholesalers or manufacturers, both before and after the invention of online shopping and improved delivery systems, saying this online shopping helps in bridging the gaps between manufacturers and consumer.
on top of my head one of the reason are the minimum order requirements or bulk purchasing set by the manufacturers and shipping cost from manufacturers to consumers, A manufacturer in California shipping a single kilo of apples to a consumer in New York would incur high shipping costs that would negate any savings from bypassing the retailer.
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