Today we want to answer the question what Taobao has to do with “Wholeselling” or why a “Wholeseller” can be on both sides of the Taobao supplychain.
A wholeseller is a basically a trader, who sells goods in a large scale or quantity to retailers. These retailers usually then sell thee goods in smaller units to the endconsumer.
Let me give you an example for a typical wholesale in China:
You might have heard of the website Alibaba which is very popular among European and US-retailers.
On Alibaba you can find wholesellers that are wholeselling their goods in 1,000-100,000 pieces one charge to the customer. Such a customer, who buys like 100,000 pieces of one product can not be called an endconsumer … this will be a retailer.
And that is basically the definition of a wholesale: Selling many pieces (really a lot of pieces) of one kind to a retailer who himself will serve the endconsumer of the goods.
“Wholesale China” is usually defined by buying cheap goods from China, because directly buying from Chinese factories or from Chinese Wholesellers can save a trader a lot of money.
There are two ways who the phrase of “wholeselling” goes together with “Taobao”: