US Wholesale Sector

The 382,000 merchant wholesalers in the US purchase goods from suppliers and sell a mix of those goods to customers. Major customer segments include manufacturers, other distributors, retailers, exporters, institutions (i.e. schools and hospitals), and service providers (i.e. restaurants and hotels). Wholesalers are also known as wholesale merchants, distributors, jobbers, drop-shippers, or import/export merchants.

Competing with Suppliers

The traditional flow of goods from manufacturer to wholesaler and then to retailer or service provider is beginning to break down.

Expansion Pressure 

Rapid growth in e-commerce and consumer demand for faster order fulfillment are putting pressure on wholesalers to set up distribution facilities closer to major customers and carry a wider range of goods.

Oct 16, 2026 - Wholesale Trade Leads Services Industry Growth in September

• Wholesale Trade ranked first among 13 services industries reporting growth in September 2026, according to the Institute for Supply Management (ISM) Services PMI report released October 5. The overall Services PMI registered 54.9%, down from 55.4% in August but remaining in expansion territory. The ISM Manufacturing PMI also indicated growth, registering 54.5%, down slightly from 54.6% in August. However, wholesalers reported higher prices, slower supplier deliveries, and inventories considered too high relative to business needs. Manufacturing expansion and wholesale trade's strong relative performance suggest favorable demand conditions for US distributors, while rising costs and supply chain delays could pressure margins and complicate inventory management.
• US merchant wholesalers' sales rose 1.8% in August 2026 from July and 15.6% year over year to $817.5 billion, according to Census Bureau figures released October 8. Inventories increased 0.5% from July and 6.4% from August 2025 to $964.2 billion. The inventories-to-sales ratio declined to 1.18 from 1.28 a year earlier, indicating that sales growth outpaced inventory accumulation. The results suggest strengthening revenue momentum across the wholesale sector, although nominal sales growth may partly reflect higher prices. Lower inventory levels relative to sales could reduce carrying costs, but distributors must maintain adequate stock to meet customer demand. The combination of robust sales growth and comparatively slower inventory expansion points to improved inventory turnover.
• An extended import peak points to a firmer near-term outlook for US wholesalers, with September container volume forecast at 2.31 million TEU, up 9.6% year over year and potentially the busiest month of 2026, according to the Global Port Tracker released by the National Retail Federation and Hackett Associates. Continued consumer spending is keeping merchandise flowing despite tariffs, inflation, and high fuel prices, supporting wholesale inventory availability and order activity heading into the holiday season. Full-year import volume is projected at 25.7 million TEU, up 1% from 2025, suggesting modest underlying trade growth rather than a sharp slowdown. However, vessel delays, Panama Canal rerouting, and elevated landed costs could lengthen lead times and pressure margins. For wholesalers, the outlook favors steady holiday demand but also requires tighter inventory planning, supplier diversification, and careful management of tariff, freight, and fuel costs.
• The National Association of Wholesaler-Distributors (NAW) escalated legal challenges to mandatory packaging recycling fees in September 2026, appealing an Oregon court ruling on September 24 and pressing for an injunction against Colorado's law on September 28. Colorado subsequently filed a motion to dismiss on October 13, while the injunction request remained unresolved. Both laws require covered businesses to help fund recycling programs through fees administered by the Circular Action Alliance. NAW argues that the requirements improperly delegate fee-setting authority to a private organization and burden interstate commerce. For US wholesalers, the fees could increase packaging and compliance costs, squeeze already narrow margins, and force distributors to raise prices or reconsider operations in affected states. The pending cases could influence how similar programs are implemented nationwide.

Industry size & Structure

The wholesale sector is comprised of 382,000 establishments that employ 6 million workers and generate $11 trillion in annual revenue, according to government sources.

• The wholesale sector represents 6% of the nation's Gross Domestic Product (GDP).
• The sector is fragmented with the 20 largest firms representing just 20% of revenue.
• In addition to employer establishments, the wholesale sector has approximately 472,000 owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are ecommerce wholesalers, agents and brokers, grocery wholesalers; apparel, piece goods, and notions wholesalers; machinery, equipment, and supplies wholesalers, and motor vehicle; these firms typically perform the work and may outsource support functions like marketing and accounting.
• The wholesale sector is forecast to have flat growth in its employment base in 2025-2035, which is lower than the national average of 3.5% growth for all jobs, according to the Bureau of Labor Statistics.