A Deep Dive into The World of Wholesale: What it is, How is it different, Why do it?

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A Deep Dive into The World of Wholesale: What it is, How is it different, Why do it?

The “wholesale” business may seem ordinary on the surface, but it holds many roles, advantages, types, and differences from other forms of business. Let’s take a deeper look at the world of wholesale to answer the question: what is wholesale? 

A Deep Dive into The World of Wholesale

What is Wholesale?

As we may have mentioned in previous articles, the wholesaling definition refers to a business that trades goods and services in a “bulk” quantity. Wholesalers typically buy a large amount of product from a manufacturer or producer then sell them to retailers and other related businesses. Of course, you may already be familiar with the meaning of wholesale.

In addition to trading with domestic retailers, did you know that wholesalers are also associated with export as well? This is because, in trade between countries, companies usually buy and sell products in enormous quantities which are agreed upon at a “wholesale price” that is less expensive per unit. Wholesalers can sell their products to overseas market and make additional profits, instead of only gaining revenue from the domestic market within the country. 

Types of Wholesale Business

If you are relatively new to the business, it could be confusing to navigate the wholesale environment. Some wholesalers work independently, while others work closely with one or two manufacturers. Overall, wholesale businesses can fall into one of these 3 categories or types. These are:

  1. Merchant Wholesalers

A merchant wholesaler is the most common wholesale type and most wholesaling definition usually refers to this business. They purchase larger volumes of products which then they sell in smaller quantities to retailers for a slightly higher price. 

Merchant wholesalers do not manufacture their own products, but they have an in-depth knowledge of products and know the right time to start selling them to retail businesses in different industries.

  1. Brokers

Sometimes, a wholesaler may not need to own the product to sell them. Brokers act as an intermediary or middleman between a manufacturer and the retailers. They negotiate a good deal between the two parties and profit from a sales commission structure.

  1. Sales and Distribution

In certain cases, a manufacturer or producer may become a wholesaler themselves. They could become a “Sales and Distribution” by establishing a representative who will act as their wholesalers or hiring a distributor company. This allows manufacturers to reach out to other businesses and create wholesale offerings that are tailored to the individual companies.

How To Differentiate Between a Wholesaler, Distributor, and Retailer?

In the supply chain, many different roles serve different purposes before delivering the product to the end customer. A wholesaler, distributor, and retailer have its own purpose and set of responsibilities that define its role in the market.

As said above, a wholesaler is a middleman that buys in bulk from a manufacturer or distributor and resells at a wholesale price to a retailer.

In contrast, a distributor is an independent agent that enters an agreement/contract with a manufacturer to act as a representative and sell their products to wholesalers or retailers. 

Lastly, a retailer is a “for-profit” business that deals directly with the general customers. To make a profit, retailers need to find a wholesaler or a distributor that sells products at the right price point and in the right quantities. Generally, retailers make money by purchasing goods from wholesalers in small quantities at a wholesale price and reselling them at a relatively high price to cover advertising costs and other expenses, such as employee salaries, rental, utility bills, etc.

Why Start a Wholesale Business?

A wholesale business comes with its own benefits. To start with, wholesaling is all about the large quantities of products. Once you have made a relationship with retailers or created a partnership, the revenue will rise much faster when compared to a retail store. Moreover, those streams of income will be consistent too since retailers need to continually come back to you for a restock.

Likewise, being a wholesaler is having control over the minimum order when dealing with retailers and customers. This gives the business the ability to forecast sales revenue and profits. 

With the mentioned benefits in mind, you can be sure that once you start a wholesale business, you will be achieving a large amount of profit in almost every transaction. However, keep in mind that wholesale business requires a huge amount of capital to launch. 

If you are planning to build your wholesale business, be sure to keep all these points in mind. And if you are entering the wholesale Thailand market, AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION is the best place to explore. 


The largest and most comprehensive wholesale center in the Southeast Asia region. 

With the concept, Food Destination Center, wholesalers can find quality and variety of food products and services at the best price from manufacturers and dealers. Not to mention, AEC TRADE CENTER has an effective Solution Service Center (SSC) that offers exclusive support services for wholesalers and customers such as Business Matching Area, B2B/B2B2C Parking Space, Loading Zone, Live Feeding & Studio, and many more. 

To create a better wholesale online experience, AEC TRADE CENTER also integrates the services with PhenixBox, a B2B/B2B2C omni channel wholesale platform via the website and application that provides seamless O2O trading. It hosts various unique features, including Group Purchase, Seller Store, E-Catalog, and more. Allowing for convenience, safety, and 24-hour trading for both wholesalers and customers. Along with the Chinese alliances from CCC Group, “Yiwu”.

It is known as “the largest small commodity wholesale market in the world” by the United Nations, the World Bank and Morgan Stanley. In 2020, they opened their physical store called “YIWU SELECTION THAILAND SHOWCASE” at AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION, BANGKOK, THAILAND. Their service will help customers find a reliable partner in China who can offer qualified service and trustable after-sale service. They will help you find great China suppliers with reasonable prices and more related services. Besides, YIWU SELECTION THAILAND SHOWCASE is one of the key online stores among many on the PhenixBox platform. With all the mentioned services, you can be certain that your business in Thailand will continually grow and prosper.

Free Register for Online Sellers:


For wholesalers who are interested in joining the AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION, please see the contact details below.


💻 Website: https://aectradecenter-th.com/ 

💻 PhenixBox: https://www.phenixbox.com/ 

👥 Facebook: https://www.facebook.com/aecpantip 

👥 Facebook: https://www.facebook.com/yiwuselection.th 

📩 Inbox: https://www.facebook.com/messages/t/aectradecenter.th  

💬 Line: @aecpantip

📞 : 061-416-6790, 065-950-5986


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