Similar to retailers, wholesalers have to be very diligent in their inventory and stock level choices to ensure they sell products that are popular. The longer it takes for a product to sell the longer the money required to buy it is not available for any other purpose (including buying stock that sells faster and potentially at a better margin).
On top of inventory and stock levels wholesalers usually import products so they need to deal with freight, import taxes and currency exchange rates.
Wholesalers and distributors also need to manage their credit property to ensure that they are paid within their offered terms so a good credit management policy and procedure is important.
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