Wholesaler is a person who make the sale of product in a bunch it sales the product only to the retailer who with its margin sell those product to the final customers.
Wholesaler sales products in huge quantity he resale the products, it is very important in the channels of the distribution who buys and resell the merchandise to retailers and other merchants and institutions but he do not sell the products to the ultimate customer.
There are multiple services to a wholesaler provides to the producer which are described under:
Act as an Intermediary:
Wholesaler is an intermediate, he is an agent who creates links between the retailer and producer, it is a channel through which the producer make retailer makes contact and exchange of information regarding the need of the customers takes place.
Storage and Transportation:
Wholesaler is a person who keeps the product in the warehouses to provide the goods to remote areas where the direct selling of the product is not possible, it is only wholesaler through which the products are transported from the company to the wholesaler and wholesaler keeps goods in warehouses and from warehouses these goods are transported to remote areas.
Price Stability: Wholesaler plays a vital role in the stability of the price who maintains the mechanism of demand and supply, he fulfill the market needs with quick orders to the producer and do not let the market to be short in the products.
A wholesaler is playing a vital role in the sharing of risk as it accepts the goods in huge quantity to fulfill the need of the market and store those goods into the warehouses now once the goods are stored the wholesaler bears the risk of possibilities of change in inflation, suppose a product of a producer is of $10 but after few days due to change in the policy of the government sometimes the governments provide subsidies to general public and reduce the taxes like General Sales Tax now the product which is of $10 now its price is $8 or may be less so the risk of $2 is shared by the wholesaler but it is also a fact that wholesaler also enjoys the benefit of inflation as well.
Prompt Delivery of Products:
A wholesaler is a person who creates link between the producer to final consumer there is a chain followed by the different personalities wholesaler keep the goods in the near places from the market, if any shortage of the products occurs the demand can be filled on immediate actions, it will take time to reach goods directly from the company this is how a wholesaler helps in the prompt or quickly delivery of the products.