As discussed earlier, wholesale trade refers to purchase and sale of commodities and services in huge quantities for the purpose of resale or intermediate use. Wholesaling is connected to the activities of those people or establishments which sell to retailers and other merchants, and/or to industrial institutional and commercial consumers but who don't sell in significant amount to final consumers. They not only enable the producers to reach large number of consumers spread over a wide location (through retailers) but carry out different functions in the process of distribution of commodities and services. They normally take title of the commodities and bear the business risks by buying and selling the goods by their own name. They buy in bulk and sell in small quantities to retailers or industrial consumers. They undertake different activities such as grading the products, packing into smaller packs, storage, and transportation, promotion of commodities, gathering market information, collection of small and scattered orders of retailers and supplying to them. They also ease the retailers for maintaining large stocks and also extend credit facilities to them. Most of the functions done by wholesalers are such which can never be neglected. If we do not have any wholesalers, these functions will have to be performed either by the manufacturers or the retailers themselves.
#Services of Wholesalers
Wholesalers present numerous services to the manufacturers and the retailers and also provide a lot of help in the distribution of commodities and services. By making the products available at a location where these are required and at a time when these are required for Consumption or use, the wholesalers give both time and place utility. The variety of services by the wholesalers is as follows: