What is the meaning of breaking bulk?

Breaking bulk

Breaking bulk or bulk breaking is a method or process to divide larger quantities into smaller when products reach to the final market for selling it to the end consumers. There are many levels in this channel. Wholesalers sell smaller quantities to other wholesalers or retailers and retailers continue to break the bulk quantities while selling to customers.

For example, let us consider a footwear wholesaler purchases larger quantities from a company. Now the wholesaler will sell the required amount of footwears as demanded by the retailers. The retailer will sell the required amount to the customers. Now as the demand will increase the retailer will again contact the wholesaler to buy more. This breaking of bulk store into smaller quantity is known as breaking bulk.