What is wholesaling? This is the sale of goods limited to institutions, companies, or other businesses but never to the consumer. This type of business is sometimes called a distributor. Wholesale jewelry and handbags falls into this category.

The progression of goods bought in the stores and online follow somewhat the same path. Manufacturers manufacture products and authorize some distributors to sell their products. With this practice, the manufacturer can concentrate on producing goods and not having to find retail customers to purchase their products. At this point, the retail stores that sell directly to the consumer will be required to buy the merchandise from a wholesaler or a distributor.

Wholesale jewelry and handbags can be found in your local retail shop either in town or at the nearby mall. A distributor or wholesale company usually are authorized to resell numerous manufacturers products. Some items such as jewelry and handbags are goods that could be made by either a large company or even just a small shop.

Since the wholesaler has made deals with many manufacturers to handle their products the distributor will carry a huge variety of goods. By having such a selection, they boost their sales by giving the stores more to purchase. By visiting more distributors stores that specialize in certain styles or types of goods have the opportunity to find what they are looking for and offer a selection to their customers.

When retail companies go looking at distributors for jewelry and handbags they will also find other items that would be complimentary to these products. They can also find things like, hats, belts, scarves and many more accessories that will sell. The distributor realizes more sales to the retail stores and the retail stores make more sales to the consumers.

Many wholesale companies will also ship items that are ordered to the consumer as an extra service for their customers which is very attractive to small stores. This practice is called drop shipping and has become very popular especially with the rise in internet shops selling products to people all over the world.

Utilizing drop shipping from wholesale companies or distributors will benefit the stores, either online or brick and mortar, by not requiring them to purchase the product, have it sent to them and then repackaging the goods to send to the customer. Adequate room can be a problem for some stores and while wholesale jewelry and handbags won’t usually fill a warehouse, possibly some other goods purchased will. The added value to the stores is that they can keep the costs down for their overhead by not requiring storage space for the items they will resell.

As you can see, wholesale companies are of great benefit to businesses like retail stores. Much effort, money and time would go into locating, setting up accounts and deals with the manufacturers so they would not be able to provide the vast variety as they can with distributors. The more diverse the selections in the stores, the more profit can be realized and saved.