A wholesaler is an intermediary that purchases goods in bulk from manufacturers or importers and resells them to retailers, other wholesalers, or industrial users, but does not sell directly to end consumers. In foreign trade, wholesalers often act as importers or distributors, undertaking functions such as warehousing, logistics, advance funding, and risk sharing. Usage scenarios include: exporters quickly entering target markets through wholesalers, wholesalers attending trade shows such as the Canton Fair to procure goods, or bulk transactions on cross-border B2B e-commerce platforms. Notes: distinguish from 'retailer', who sells directly to consumers; different from 'agent', as a wholesaler takes ownership of the goods and bears its own profits and losses; sometimes used interchangeably with 'distributor', but a distributor often has an exclusive agreement with the supplier. Foreign trade practitioners should pay attention to the wholesaler's purchase volume, payment methods (e.g., T/T, L/C), market coverage capability, and ensure that contracts clearly specify delivery, quality inspection, and claim clauses.
📝 Examples
1. Our company mainly exports small home appliances to European wholesalers, with each order being at least one 20-foot container, and they then distribute them to local supermarket chains. (Note: This illustrates the large-volume transaction model between exporters and wholesalers.)
2. This wholesaler requires us to provide an FOB Shanghai quotation and agrees to a 30% advance payment, with the balance paid against a copy of the bill of lading. (Note: This illustrates the typical payment and trade term requirements of wholesalers in foreign trade negotiations.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner