Who are considered intermediate purchasers?

Intermediate purchasers are entities that acquire products not for final consumption, but with the intent of reselling those products or utilizing them in their own processes. Retailers and wholesalers fit this definition perfectly, as they buy goods from manufacturers or distributors and then sell them to consumers or other businesses.

Retailers purchase goods to provide a selection to end consumers, while wholesalers buy in bulk and sell to retailers, essentially acting as a middle layer in the supply chain. This role is crucial in the distribution process, as it helps to ensure that products are available in the right places for consumers to purchase, facilitating the movement of goods from producers to the final buyers. The nature of their purchases, therefore, defines them as intermediate purchasers in the business ecosystem.