Wholesale trade is a practice in which firms produce and sell goods to distributors, resellers, government institutions, and businesses, but do not sell to the final consumer. The entities involved in this practice are participants in wholesale trade. The goods produced, sold, and traded under these agreements are considered wholesale goods.
Wholesale trade economics considers the production, selling, and trading of goods at the pre-consumer level. Wholesale trade data allows investors to determine how healthy the economy surrounding a product (or group of products) is, which allows investors to predict economic and market behavior: buying and selling. The ability to predict buying and selling behaviors is a critical component of production - if businesses are buying more of a product, the producers know there is sufficient demand to continue creating the goods. On the other hand, if there is a decrease in demand for a product, producers can reduce the amount of goods they put into the market.