Types of wholesalers. - SS1 Commerce Lesson Note

Merchant Wholesalers

Merchant wholesalers are independent businesses that buy goods from manufacturers or other sources and sell them to retailers, businesses, or other wholesalers. They take ownership of the products they purchase and typically operate from warehouses or distribution centers. Merchant wholesalers handle a wide range of products and offer services such as inventory management, bulk purchasing, and delivery.

Agents and Brokers

Agents and brokers act as intermediaries between buyers and sellers. They do not take ownership of the products but facilitate transactions on behalf of their clients. Agents represent either the buyer or the seller and help negotiate deals, find suitable suppliers or buyers, and assist in completing the sale. They earn commissions or fees based on the value of the transaction.

Manufacturers' Sales Branches and Offices

Manufacturers' sales branches and offices are wholesalers that are owned and operated by manufacturers. These entities handle the wholesale distribution of their own products. They can have regional or local branches to reach different markets. Manufacturers' sales branches and offices ensure direct control over the distribution process and allow manufacturers to maintain a closer relationship with wholesalers, retailers, or end consumers.