Hello!
Please explain me this because I can not figure out!
As I see producers sell their stuff to wholesales. Wholesales gather a bunch of different things and then sell it to retailers who communicate with the costumers and sell it to them.
For example a wholesale of stationery gathers pencils, papers, toners etc. Then they sell these in smaller amounts to retailers who after that deliver directly to the offices (to the costumers).
Why don’t wholesale just sell and deliver right away to the costumers and gain the extra money the retailers basically live on?
In: Economics
Because consumers don’t buy at anywhere near the large quantities for bulk buy and the manufacturer doesn’t want to go through all the expense needed to convince a consumer to buy their smaller quantities. It’s more profitable to sell to a relative few stores that will buy large quantities than to try and find a way to sell to all the individual consumers, let the stores figure out how to make a profit selling directly to consumers.
itsm ostly for convinience and profit
wholesellers want ot sell large amounts of product, andmost private costumers dont do this, so the added cost for costumer acquisition is not worth it.
instead ifts better for them to sell ot retailers that will buy from them in mass evne if it means selling each individual item at a small loss, doing it this way also offloads the cost of customer acquisition and needing ot have a storefront.
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