Question

Long answer type questions.

Explain the features of wholesalers.

Answer 1

A wholesaler is a person who buys goods in large quantities from the manufacturers and sells them in smaller units to industrial units or retail traders. They act as a link between manufacturer and retailers and are not in direct contact with the ultimate consumers.
The following are the main feature of wholesalers.
i. They represent the first stage of distribution and form a link between manufacturers and retailers.
ii. They deal in a single line of products and usually take the title of goods from the manufacturers and sell them later in their own name.
iii. Wholesalers trade in bulk quantities as they buy and sell goods in large quantities.
iv. They provide various services to manufacturers and retailers such as storage facility, providing market information, risk bearing and regular supply of goods.
v. Wholesalers perform a variety of marketing functions, such as advertising, warehousing, financing, etc, thereby helping retailers to save time and money.
vi. Wholesalers also help in maintaining and stabilizing the market prices by balancing the demand and supply of goods.