Wholesaling, jobbing, or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer.
According to the United Nations Statistics Division, "wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots. While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.
Year in Review:
Total U.S. Wholesale Trade during the 12 months through November 2016 totaled $5.3 trillion, down 0.9% compared to the level one year ago. Low com-modity prices in 2016 created headwinds for many wholesaler-distributors as they felt the pain of declines in the dollar value of revenues related to Wholesale Trade of Petroleum, and Wholesale Trade of Metals and Minerals, down 14.7% and 12.8%, respectively. However, not all wholesaler-distributors shared the same experience. Total U.S. Wholesale Trade excluding Petroleum, Metals, and Minerals (up 1.2% year-over-year) avoided a recession altogether, supported by the growth in consumer-facing segments. Such segments include Wholesale Trade of Lumber and Other Construction Materials (up 6.5% year-over-year), Wholesale Trade of Furniture and Home Furnishings (up 6.2%), and Wholesale Trade of Hardware, Plumbing, and Heating Equipment and Supplies (up 4.3%). U.S. Wholesale Trade Employment averaged 5.9 million workers in 2016 as a whole, up 0.9% from the 2015 level. However, the pace of growth is slowing.
