Meaning of wholesaling
Different intermediaries need to be used in the process of supplying goods or services produced by a firm to final consumers or users. Among such intermediaries, wholesalers are the main ones.
The wholesalers work as an important link between producers and retailers. Wholesalers buy goods in bulk quantity from producers and sell to retailers, industrial users, business firms and institutions, except final consumers, their business is called wholesaling.
The wholesalers work as an important link between producers and retailers. Wholesalers buy goods in bulk quantity from producers and sell to retailers, industrial users, business firms and institutions, except final consumers, their business is called wholesaling.
Wholesalers are intermediaries who generally do not sell goods to ultimate consumers. But they sell directly to industrial users, retailers and other business and commercial institutions. Most of the wholesalers deal in bulk quantity of goods, but some of them may also deal in small quantity.
Generally, wholesalers do not sell goods to final consumers. They deal in and sell in only certain product line. They do not need to decorate their shops like retailers. Wholesalers buy bulk quantity of goods and store in big warehouses. They can provide financial help to producers and retailers if they need. Compared to retailers, wholesalers take low profit margin. They also perform the facilitating functions of marketing such as standardization, grading, branding, packaging, advertising etc.
Features Of Wholesaling
1. Link between producers and retailers
Wholesalers act as an important link between producer and retailer.
Bulk buying is another feature of wholesaling. Wholesalers buy goods in bulk quantity from producers.
3. Few product line
Wholesalers deal in the goods of certain product lines only.
4. Low profit margin
Most of the wholesalers do their business for low profit margin.
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5. Sales on credit
Generally, wholesalers sell goods to retailers on credit.
6. Financial help
Wholesalers can provide financial help to producers and retailers, if needed.
7. Various services
Wholesalers also provide services such as warehousing, risk-bearing, promotion, market information specialist advice etc.
