When it comes to how products and services reach customers, terms like broker, wholesaler, distributor and retailer often get used interchangeably. But while they are all part of the supply chain, their roles are very different.
So, is a broker the same as a wholesaler Not quite — and here is why that distinction matters, especially when it comes to understanding how energy services are structured in Australia.
What is a wholesaler
A wholesaler is a business that buys goods or services in large quantities directly from the source — such as a manufacturer or generator — and then sells them in bulk to retailers or sometimes large clients.
In the context of energy, wholesale energy refers to electricity or gas purchased on the energy market by retailers, who then resell it to end users like homes or businesses. Wholesalers:
- Operate on volume
- Do not typically deal directly with the public
- Focus on supply and delivery logistics
- Set prices based on market rates and demand
Think of a wholesaler as the middle stage between production and retail.
What is a broker
A broker, on the other hand, does not take ownership of the product. They do not generate, buy, or store anything. Instead, they help customers find the best deals from multiple providers and negotiate on their behalf.
An energy broker, for instance:
- Compares electricity and gas plans from different retailers
- Analyses your usage or business profile
- Recommends tailored plans or strategies
- Often manages the switch process for you
They add value through expertise and market access — not through stock or volume.
Key differences at a glance
| Role | Broker | Wholesaler |
|---|---|---|
| Owns product | No | Yes (in bulk) |
| Who they serve | End users (households or businesses) | Retailers or large clients |
| Value provided | Comparison and advice | Volume pricing and logistics |
| Revenue model | Commission or service fee | Margin on large-scale transactions |
Why this matters in the energy industry
When your power bill arrives, it is the result of a chain that starts at generation, moves through the wholesale market, and ends with a retailer. But the choice of which retailer and plan you use — that is where a broker comes in.
A wholesaler sets the background cost. A broker helps you make sense of the options built on top of that cost.
What an energy broker can do for you
Rather than deal with the complexities of the wholesale market, you work with a broker who can:
- Identify retail plans that match your real usage
- Negotiate better deals than advertised rates
- Break down tariffs, discounts and conditions
- Coordinate changes without service interruption
If you are curious about the big energy providers in Australia and how they compare, this energy broker overview is a good starting point.
Final word
A broker is not a wholesaler — they are on opposite sides of the supply chain. One works behind the scenes with bulk transactions. The other works on your behalf to navigate the best end-user options available. And when the goal is saving money and avoiding bill shock, a broker is often the smarter ally to have on your side.