What is wholesaling?

Wholesaling is accurately defined as the sale of goods in large quantities at low prices to be retailed by others. This definition captures the essence of wholesaling, which involves purchasing bulk quantities of products from manufacturers or distributors and then selling them to retailers rather than directly to consumers. Wholesalers act as an intermediary in the supply chain, enabling retailers to access larger volumes of stock at reduced prices, which they can then sell to end consumers at a markup.

Wholesalers take advantage of economies of scale, allowing them to offer products at lower prices compared to purchasing them individually. This method benefits retailers who may not have the capacity or capital to buy in bulk directly from manufacturers. Additionally, wholesalers often provide extra services such as warehousing, transportation, and sometimes credit, which further enhances their role in the retail supply chain.

The other definitions do not fit the concept of wholesaling. For example, the sale of goods in small quantities to consumers pertains directly to retailing and not wholesaling. A retail strategy focused on heavily discounting products could apply to various retail practices but does not specifically define wholesaling. Lastly, the process of advertising products refers to marketing efforts rather than the transactional nature inherent in wholesaling. Thus, option B is the correct