Roles of wholesaling business

Wholesalers also sell products to institutions, such as manufacturers, schools, and hospitals, for use in performing their own missions.

Top 8 Essential Functions of a Wholesaler | Business Management

As mentioned earlier, agents represent manufacturers and wholesalers. Glossary manufacturer A producer; an organization that converts raw materials to finished products.

roles of wholesaling business

This situation in turn can be attributed to the growing number of retailers and also to increased transport costs owing to rising fuel prices.

But all wholesalers have the same problems. Often this includes physically sorting, grading, and assembling the goods. A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, other wholesalers, or retailers.


The fast paced world of eCommerce has driven the wholesale model to accept dropshippers with potential fulfillment services.

At the other extreme is the producer with a production and sale contract specifying terms and conditions for delivery to a specific customer with details including quantity, quality and price. They can avail of economies in freight.

roles of wholesaling business

Wholesalers either take title to the goods they purchase, or they own the goods they purchase. Wholesalers purchase very large quantities of goods directly from producers or from other wholesalers. Goosens, Minten and Tollens, 1994.

roles of wholesaling business

He built a custom email lead gen campaign that catapulted a startup to 7-figure sales within one year. The need for cassava wholesale markets in Kinshasa, Zaire Most wholesale markets have been built for perishable produce, especially for fruits and vegetables, since such items have to be marketed quickly and efficiently.

This facilitating role of the state should be perceived as an ongoing process and not as a single act. Would marketing costs fall sufficiently to encourage lower food prices?

The Role of Wholesalers

Jerome McCarthy and William D. Market Information. In both cases, the market mechanism has no significant place in coordinating production and consumption, since coordination is already fully assured. There are two basic kinds of merchant wholesalers: Itinerant and Fixed Retailers Traders with diagram. One of the most important functions of wholesaler is that it provides important market information to retailer and manufacturer, which help the retailers about the demand of consumer and manufacturer, so that he produces the goods according to the changes in the tastes and fashions of the consumer.