Wholesaling

Wholesaling is buying goods in bulk quantity, usually directly from the manufacturer or source, at a discounted rate.

[3] However, with the advent of the internet and e-procurement there is an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan, and Southeast Asia.

The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs.

[4] In China, wholesalers are subject to a Value-Added Tax (VAT) of either 9% or 13% on imported goods, depending on the type of product.

These taxes are part of China's broader strategy to promote domestic consumption and regulate imports.