Which statement describes wholesalers in distribution?

• A. Retailers
• B. Wholesalers buy in bulk and sell to retailers.
• C. Direct to consumer platforms
• D. Manufacturers

Answer: (D)

Wholesalers act as intermediaries in the distribution chain, bridging producers and retailers. They buy large quantities from manufacturers at bulk prices and store goods, then sell smaller lots to retailers. This break-bulk function helps manufacturers reach many retailers efficiently and allows retailers to stock a variety of products without handling bulk shipments or tying up lots of capital. They typically do not sell directly to consumers, and they are not the producers themselves. The description that best captures a wholesaler’s role is that they buy in bulk and sell to retailers.