Wholesalers are organizations that buy products in bulk from manufacturers or producers and resell them in smaller quantities to retailers. They act as a connecting link between producers and retailers. The main features of wholesalers are:
- Bulk Quantity: Wholesalers buy goods from the manufacturer in large quantities.
- Capital Investment: Wholesalers require a large amount of capital to be invested in the business.
- Direct Contact with Manufacturer: Wholesalers have direct contact with the manufacturer.
- Risk Bearer: Wholesalers act as a real risk bearer in the process of distribution.
- Marketing Functions: Wholesalers perform various marketing functions.
- Specialization: Wholesalers generally deal in one or few items of goods.
- Location: Wholesalers are located in the same area for the convenience of the retailer.
- Product Dispensing: Wholesalers buy products in bulk and dispense them in smaller quantities.
- Product Range: Wholesalers provide various iterations of a particular range or product.
Wholesalers perform various functions that make them important in distribution. These functions include buying and assembling products from various manufacturers, storing them in their warehouses, and ensuring supply of products as per demand in a particular region. They also provide a range of services to buyers and manufacturers like transportation and buying on credit. Wholesalers are an important source of market information for manufacturers and retailers, and they also provide financing to retailers and manufacturers. They are responsible for promoting the product in their locality as well as taking charge of the sales of the product[[4]](https://w...