Roles of Wholesaler - SS1 Economics Lesson Note
A wholesaler is a business that purchases goods in bulk from manufacturers and then sells them to retailers in smaller quantities. Wholesalers play an important role in the distribution process by acting as intermediaries between manufacturers and retailers. Here are some of the key roles of a wholesaler:
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Purchasing: Wholesalers purchase goods in large quantities from manufacturers, often at a discounted price, and then store them in warehouses until they are sold.
Inventory management: Wholesalers are responsible for managing inventory levels to ensure that they have enough stock to meet retailers' demand while avoiding overstocking.
Breaking bulk: Wholesalers buy goods in large quantities and then break them down into smaller quantities for sale to retailers, making it easier for retailers to purchase the amount they need.
Transportation: Wholesalers may provide transportation services to retailers, delivering goods directly to their stores.
Credit and financing: Wholesalers may offer credit and financing to retailers, allowing them to purchase goods on credit and pay later.