Goods can be moved directly from the producer to the consumer, but generally manufactured goods are delivered to consumers through indirect and more complicated channels. Wholesaling is a part of the marketing system standing between the manufacturer and the retailer and providing channels for goods distribution. Wholesalers buy goods in large quantities and sell them in small quantities to retailers, thus they simplify the distribution process. Dealing directly with diverse producers and trading with a large assortment of items, wholesalers at the same time trade with numerous independent retailers, so wholesaling is of great importance both for manufacturers and retailers. Small businesses are known to participate in the field of wholesaling, about one-fourth of wholesaling units accounting for one-third of total sales.
