Wholesalers: Essentially the Backbone of Retail Market

Cake Boxes Wholesale, Bakery Boxes Wholesale, Donut Boxes Wholesale

Wholesalers: Essentially the Backbone of Retail Market

My husband and I were peacefully running our little grocery store in the outskirts of the Philadelphia when Covid-19 hit the world. We would keep everyday things for our compact neighborhood in reasonable prices. We had a fixed clientele who loved our boxed and baked items alike. People we served were like family so we had a smooth sailing. My 2 girls would regularly join us to help and meet the people. So, everything was working great. But Covid-19 came as a shock to us.

Consecutive lockdowns and subsequent price hikes were a huge setback for us. At that time, we faced a disastrous drop in sales. Our regulars started ordering from the delivering services. Unfortunately, we were not registered, so we couldn’t do that. At that time, we did not know what to do. But we hadn’t a single clue that we will jump back as wholesalers. More specifically, we did not know we’d be doing Cake Boxes wholesale.

Our lives had turned upside down in a matter of months and we had to look for something to do to survive. It was a difficult road, but once we got the hand of it, our business became a success. Now my one of my girls and I work on the store and my husband with my older one is working on the bakery boxes wholesale.

So, if you are looking to enter a business market, somewhere in the chain suppliers, wholesaling is something which works great. There are many benefits to that plan and you can get the hang of things pretty easily if you put in good work. However, you must be ready to make investment and get registered to put yourself on the map.

What is Wholesale?

Wholesale is a process in which a person or a business gets the product(s) in large quantities at a cheaper price from the manufacturer and sells it to the retailer and gains the profit in the process.

A wholesaler not only buys and sells the product but also stores them till the demand rises. Moreover, they are also responsible for creating stock lots and give it out to multiple retailers as per their demands.

Types of Wholesalers

There are three main kinds of wholesalers. The types depend on the kind of business they do and the way they deal with the product.

Merchant Wholesalers:

They are the people who buy the product directly from the manufacturers in bulk. They are well-aware of products, its types, classes, and qualities. Plus, they know how to compare multiple manufacturer to get the best bargain. However, they must have proper storage to keep the products. They use warehouses for storage and ensure that the product is safe.


Brokers do not buy the product. They work in striking a deal between the manufacturer and the retailer. Their earning comes from setting a sales commission from both the parties.


It is completely different from the two above given models. In this process, the manufacturers send over a person to connect with the wholesalers. The process is easy for both the manufacturer and the wholesaler. Because, the wholesaler does not need to look for the suitable deals and the manufacturer. It works for the manufacturer, because then, they don’t have to cater to various wholesalers saves them time. So, they send distributors to relevant wholesalers and offer them suitable packages as per their desire.

Functions of Wholesalers:

A successful wholesaling experience requires completion of certain tasks. Wholesalers complete those tasks as their functions. Everywhere you will look up on google, every website will give you a different version of function. When we started working in the wholesale, our experience taught us a lot. We learned that there will be some specific things we would be doing for some retailers and manufacturers, and some very general things all of them would need.

Acquiring the Product:

When our cake boxes wholesale startup took place, we did not know where to start. The first thing was to get quality boxes in due time, so OBT Packaging was our choice and that was the best decision ever. They send great quality boxes, all in perfect time, and impeccable delivery service. So, we not only got cake boxes, we also ordered donut boxes wholesale purpose and they were always up to the mark!


Next came the phase of storage. So, we would always ensure that we keep the boxes in a suitable place. Storing them away from rain and rodents was the main concerns. It was initially difficult given the frequency of the rain. But we managed well by making an inventory in our guest bedroom. Depending on your product, you must plan the storage. One wrong move and all the lot would go to waste.

Credit or Cash:

Selling the product to unknown means taking risk. But when you are in a business, you must learn to take risks. We knew that credit is a common game in the wholesale market. So, we also played it! Every retailer had their own terms and conditions, so, some we agree to some we convince for. Agreeing to credit is something which came on our part. So, we would get cake boxes wholesale and sell them on credit to some of our retailers, but the returns we would get were worth the wait!

Advantages of Wholesale

Wholesale has many advantages to offer. It is true that it comes with some risks, but the risks are worth it because of the revenue we would generate. After a while, out bakery boxes wholesale was widely known for their quality. Even the customers would appreciate the retailers for the donut boxes wholesale they were using to pack their goods! So, the feedback on our products was great. Some advantages of wholesale are:

  1. Great connections with everyone. If you sell good product, you will be famous. So, your product will make its own place in the market. 
  2. Bulk profits are a part of wholesale. Since, we buy the product in huge quantities, the turnover is also immense. So, the money really starts flowing in once you know how to work. 
  3. Specialization is the core of wholesaling. You can only work with one line of products and be a king in it. There is no room for jack of all trades. So, you pick one product, wok on its supply chain, and become an expert. Like we wanted to work on cake boxes wholesale. So, our manufacturers and retailers, all come from the same industry. 
  4. Convenient business expansion is one of the best advantages. We started simply from cake boxes wholesale, but expanded to donut boxes wholesale, and eventually to all kinds of bakery boxes wholesale in a short span of one year!

Disadvantages of Wholesale:

  1. The biggest drawback of wholesaling is high capital requirement. We invested our savings of the past 5 years to get where we are, but with no regrets. 
  2. Also, you need to learn the demands before placing an order with the manufacturer. Otherwise, the entire stock goes to waste. 
  3. Moreover, you must look up the price and get the best bargain from both directions to ensure proper returns. 
  4. Most importantly, never over stock. We once overstocked our cake boxes wholesale and rain ruined it all. So, overstocking is a massive disadvantage.