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
They make it easier and more convenient for everyone to get what they need, when they need it, in the quantity that they need. Wholesalers buy in large quantities from manufacturers and then sell in smaller quantities to retailers. This saves retailers from buying more than they can handle. Retailers then sell products directly to consumers in a way that’s convenient for everyday shopping. If consumers bought directly from manufacturers or wholesalers, they’d have to buy too much, wait longer, or deal with complicated processes. So, each step helps get products closer to consumers in just the right amounts, making shopping simple and accessible for the everyday person.
Latest Answers