A wholesaler is a distributor that sells products to a retailer. A wholesaler will sell his product in bulk quantities to retailers, allowing the retailer to take advantage of a lower price than if he were to buy single items. The wholesaler will typically buy goods direct from the manufacturer, but could also buy from a reseller. In either case, the wholesaler gets large discounts for buying large quantities of goods. The wholesaler is rarely involved in the actual manufacture of a product, focusing instead on distribution.
A wholesaler requires a license to sell his product to the retailer, and his product will generally not be available to the customer at the same price as to the retailer. This is because the retailer makes their profits by marking up the price they pay to the wholesaler. In the case that a customer wishes to purchase a product from the wholesaler he will be charged for a drop shipment, this charge being charged to the customer as well as the wholesaler by a drop shipping merchant.