The following are the characteristics of
Wholesalers buy goods directly from
producers or manufacturers,
Wholesalers buy goods in large
quantities and sell in relatively smaller quantities,
Wholesalers sell different varieties of
a particular variety of product,
They employ a number of agents or
workers for distribution of products
They need large amount of capital to be
invested in his business,
They generally provide credit facility
They also provide financial assistance
to the producers or manufacturers,
8. In a city or town, they are normally located in one particular area of the market.
Following are the functions of
of Goods: Wholesaler collects the goods from manufacturers or
producers in bulk.
of Goods: Wholesaler collects and stores them safely in
warehouses, till they are sold out. Perishable goods like fruits, vegetables,
etc. are stored in cold storage facility.
Wholesaler sells goods to different retailers. Thus he performs the function of
Wholesalers provide financial support to producers and manufacturers by
providing money in advance to them. He also sells goods to retailer on credit.
Thus, at both ends wholesaler acts as a financier.
Taking: Wholesaler buys finished goods from the producer and
keeps them in the warehouses till the time they are sold and assumes the risk
arising from price, spoilage of goods, and changes in demand.
Packing and Packaging: Wholesaler classifies the goods
into different categories. He grades the goods on the basis of quality, size and
weight etc. He also undertakes packaging of goods and also performs the
function of branding.
Information: Wholesalers provide valuable
information to retailers and producers. The retailers are informed about the quality and type of
products available in the market for sale. The producers are informed about the
changes in taste and fashions of consumers by wholesalers so that they may
produce the goods on the basis of tastes and preferences of customers.
A wholesaler arranges for the transport of goods from producers to his
warehouse and from the warehouse to retailer. Many wholesalers maintain their
own trucks, carry goods in bulk and add place utility to the goods.